Connecticut Business License

Even if you love your job, becoming your own boss is something most people think about. In addition to turning your dreams into a lucrative reality, you get to run things your way without having to take orders from someone else.

Of course, along with the perks comes an enormous amount of responsibility. If you're considering opening a business in Connecticut, here's everything you need to know

If you're opening a small business in Connecticut, one of the first things you'll need to apply for appropriate licenses, permits and applicable identification numbers that align with the type of services your business offers. While some of the more common taxes include withholding tax, business entity and sales tax, the following types of taxes may apply depending on the nature of your business:

You may also want to visit the State of Connecticut Department of Revenue Service website for additional information and a detailed list of applicable business taxes. Here, you'll find services for electronic filing, an extensive research library with tax forms and updated news about tax policies.

In Connecticut, you must obtain both permits and licenses that correspond with your services. The final cost of your license or permit will depend on your specific trade. For instance, licenses are mandatory for all medical laboratory services, landscape companies, construction, casino and gaming and real estate appraising.

To ensure you've applied for all applicable licenses or permits, visit the Connecticut Licensing Information Center for a comprehensive list of permits and licenses. The website also includes online verification and registration for licenses.

The local government where you live may also require specific permits and licenses. Each municipality may have its own specific set of rules you need to follow.

Below are some of the most common types of licenses or permits you may need.

Regardless of niche, all businesses in Connecticut positioning themselves as non-profit organizations, corporations, in a partnership or limited liability entities must register with the Secretary of State. To learn more about the regulations regarding incorporation filing, visit the Connecticut Secretary of State website. You'll find registration forms, features press releases and a multitude of useful links for business owners.

Business owners assuming the title as sole proprietor do not need to register with the Connecticut Secretary of State; however, any business that falls under that category must only use the legal name of the owner. Finally, the owner will be liable for any and all of the business's debts.

To avoid having your business and legal name confused register as a corporation or file for a trade name. You can file or a trade name on the  Connecticut Commercial Recording Division's page. You can also browse through existing businesses. If another business is already registered your trade name, you'll need to choose a new one.

After the 4th quarter of every year, you need to keep all employment tax information on file for at least four additional years.

The following list are examples of what you need to record:

Employees' personal information, such as contact information

Information on annuity, wage and pension payments

Your employer information, including your employer identification number

Visit the IRS website for an extensive list of items you need to record. Keeping accurate records makes filing your taxes easier.

W4 forms are withholding exemption certificate. In the state of Connecticut, employees must return a signed copy to employers for tax filing purposes. Employers in Connecticut must submit all W4 forms to the IRS.

W2 forms is a document indicates both tax withholding and employees' paid wages. Employers must submit a copy to the Social Security Administration at the end of each February. If submitted electronically, then it's not due until the end of March of each calendar year.

Use the following websites to research further information and find applications needed to filing both types of forms:

https://www.ssa.gov/employer/

https://www.irs.gov/pub/irs-pdf/p15.pdf

https://www.uscis.gov/i-9

-9 Forms are proof of eligibility to work in the US. All employees must complete and return to the employer within three days of starting employment. Employers should keep completed on file for future reference.

You can find I-9 Form on the United States Citizenship and Immigration Services website.

In Connecticut, it's required that all employers report information about new and returning employees within 20 days of hiring or returning to their previous position. The submitted information must include items the employee's personal information and employer's identification.

The complete list of required information can be found on the Connecticut Department of Labor's New Hire Reporting website. The website features a FAQ page as well as instructions on how to submit all required documentation online.

If and when you hire employees for your business, you'll also have to pay additional taxes, including workers' compensation tax and unemployment insurance tax.

Workers' compensation coverage not only protects Connecticut employees who sustain injuries on the job, but also you. Without appropriate coverage, you could be sued and lose your license to do business.

To register for unemployment insurance tax, you can visit the official website of the State of Connecticut Workers' Compensation Commission. New business owners can also download additional information on worker's compensation and unemployment insurance tax.

Understanding what it takes to open a business in Connecticut is the first step towards success. Before you put the open for business sign on the door, make sure you you have all necessary licenses, permits and appropriate insurance for all of your employees.