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Are you starting a business in Connecticut?

On Behalf of | Dec 31, 2021 | Uncategorized |

Connecticut provides a wonderful environment for any business to thrive, but your success will mostly depend on your hard work, connections and following the law. If you want to start a business, here are the important things to keep in mind.

Find an ideal customer base for your idea

You probably have a rough idea of what you want to do or the kind of business you want to start. To thrive, you will need more time to explore and research facets of that idea that can do well in your environment. You must consider your resources, skills, interests and availability as well as the persona of the customers you are targeting.

Next, use your idea to draft a business plan. Your business plan is a key tool because you can use it to attract investors, set your budget, create a vision for your team and find better strategies to make money.

Decide on a legal structure

Connecticut business law requires you to have a legal structure for your company. The four most common structures include corporation, limited liability company or LLC, partnership and sole proprietorship. Choose one that suits the type of business that you want to start.

Get your licenses and permits

As long as you are planning to sell anything in Connecticut or hire someone to help you with the business, you must register with the Department of Revenue Services. In addition, you will need a federal Employer Identification Number, trade license permits, and professional and occupational licenses.

Obtain insurance and open a bank account

In Connecticut, every employer must have workers’ compensation insurance coverage. This is meant to cover their employees from any injuries they get from work. You will also need insurance for physical items and the business in general.

A bank account is necessary for keeping track of your cash flow. If your business structure is an LLC, corporation or partnership, a separate bank account is a must.

In Connecticut, startups have a survival rate of about 78%. This is outstanding odds given how difficult it is to drive a new business to profitability. By adhering to the law, choosing the best structure and following your plan, you stand a great chance of success.