Setting up a corporation or incorporating a business is easier than you might think. Power My Technology can help you develop your skills and grow your business. Let’s take a look at how to incorporate a business.

Application for Reservation of Name

Reserving a company name is an important first step in incorporating your business. The fee in Connecticut for this application is $60

http://www.ct.gov/sots/lib/sots/commercialrecording/allforms/all-namereservation.pdf

---

Articles of Organization

This form is a declaration of how your company structure is setup. Information requested includes company contact info as well as names of company officers. The fee in Connecticut for this application is $120.
http://www.ct.gov/sots/lib/sots/commercialrecording/allforms/articles_of_org_-_domestic_llc.pdf

---

Sales & Use Tax

You must obtain a Sales and Use Tax Permit if you intend to engage in any of the following activities in Connecticut:

• Sale, rental, or lease of goods;
• Sale of a taxable service; or
• Operation of a hotel, motel, or lodging house.

Keep in mind that many types of work are tax deductible. For example, technology service organizations pay 1% sales tax after a 5% deduction in Connecticut.

http://www.ct.gov/drs/cwp/view.asp?a=1509&q=266240

---

Business Entity Tax

After all other documents have been filed, you will receive information on the Business Entity Tax. This is a tax due yearly and costs $250.

http://www.ct.gov/drs/lib/drs/publications/pubsip/2008/ip08-26.pdf

---

Initial start up costs for your business can be as low as $200, and $250 per year for the business entity tax, plus sales tax. If you live in a state other than Connecticut you can find similar forms on your state’s Secretary of the State website.