If you want to start a business in Connecticut, forming a sole proprietorship is typically the easiest route to take. This will give you full control over the operations and won’t require much time or money to get started. However, there are a few steps you will need to take to ensure compliance with the state’s business laws. The attorneys at Zangari Cohn Cuthbertson Duhl & Grello P.C. in New Haven, CT, are committed to helping local entrepreneurs start successful enterprises. Below, they explain how to establish yourself as a sole proprietor.

Setting Up a Sole Proprietorship According to Connecticut’s Business Laws

Choose & Register a Business Name

First, choose a business name. It must be something original that isn’t already trademarked by another entity. You can search this online through the Connecticut Secretary of State, U.S. Patent & Trademark Office, or the clerk’s office in the city where you plan to do business. Once you decide on a name, submit a notarized registration application to the town clerk. 

Set Up Finances & Secure Insurance Protection

When you start a sole proprietorship, it will become necessary for you to separate your business and personal finances. This will help when it’s time to review financial statements and prepare tax returns. Set up a business bank account, open a credit card strictly for commercial use, and consider how you’re going to keep records of your books. Also, purchase liability insurance to protect you from any unexpected events that may arise.

Obtain Permits, Licenses, & Employer Identification Numbers

Next, determine if the state’s business law requires your sole proprietorship to have certain permits and licenses to operate legally. You can find this out by checking the Connecticut Online Licensing Information Center. If you plan to hire employees, you will also need an Employer Identification Number to report taxes. Additionally, you must register for unemployment insurance tax with the Connecticut Department of Labor.

Despite the uncomplicated start-up process for a sole proprietorship, it’s still recommended you work with an attorney who is familiar with Connecticut’s business law. Zangari Cohn Cuthbertson Duhl & Grello P.C. will make sure you’ve covered all your legal bases, and they will serve as a valuable resource for any questions you have regarding subjects such as liability, taxes, and intellectual properties protection. Give them a call today at (203) 789-0001 to schedule an appointment, and visit their website for more information on their services.