If you are planning on starting a home improvement business in Connecticut, then it’s important to understand how to set up the proper corporate structure. One way that you can do this is by setting up a corporation for home improvement. This will allow you to protect your personal assets and make sure that your business has more credibility when dealing with suppliers and contractors. Here are the steps to follow if you want to form a corporation for home improvement in Connecticut:
Home improvement contractors may only form corporations if they are sole proprietorships.
A corporation is a legal entity that can be used to protect the business owner from liability. Corporations, however, are required to have a registered agent in the state they are incorporated in and must file annual reports with that state.
Corporations must also follow certain rules when it comes to conducting business:
- The number of shareholders cannot exceed 50 (unless they are non-profit corporations).
- Each shareholder must own at least one share before they can vote at meetings or participate in any other way (except for co-owners).
To properly operate a corporation for home improvement in Connecticut, you must meet all of these requirements:
To properly operate a corporation for home improvement in Connecticut, you must meet all of these requirements:
- You must have at least one shareholder.
- The shareholders must be natural persons, not trusts or other entities.
- The corporation’s name must end with “Corporation For Home Improvement.” This will help people know that they are dealing with your business and not someone else’s.
1. Form a corporation and name it
The first step in forming your corporation is to name it. The name should be unique, not the same as any other corporation or business name registered with the state, and not offensive. You can use your own last name, but it’s best if you don’t use words that sound like they could be associated with another person or business. Examples of common mistakes include: “Home Improvement Company” (too close to Home Depot), “Handyman Inc.” (this sounds like a man named Handyman owns it), “Mr. Fix-It’s Plumbing Service” (the word Mr., plus the plural word plumbing makes this confusing).
It is also important that your chosen moniker doesn’t infringe upon any trademarks held by others–you don’t want anyone coming after you for using their intellectual property without permission!
2. Obtain Articles of Organization from the Secretary of State’s office
- Obtain Articles of Organization from the Secretary of State’s office
The first step in creating a corporation is to file Articles of Organization with the Connecticut Secretary of State, which must be done within 30 days after forming your business. The articles contain information about you and your company including its name, purpose, address and registered agent (a person who can receive legal documents on behalf of a business).
3. Apply for an Employer Identification Number (EIN) from the IRS
An Employer Identification Number (EIN) is a number that the IRS assigns to businesses in the United States. It’s similar to a Social Security Number (SSN), except it’s used for business purposes instead of personal ones.
You can apply for an EIN online or by mail. You’ll need your name, address and phone number, as well as other information about your business that will be used on tax forms throughout the year–like whether or not you have employees and if so how many. You’ll also need access to banking information in case they charge you any fees during this process ($0). Once they receive all of this information, they’ll send back an EIN within five days!
4. Incorporate your new business with the IRS by submitting Form 2553. You will have to submit this form within 60 days of forming your corporation.
Once you have decided on a name and filed the articles of incorporation, you will need to submit Form 2553 with the IRS. Form 2553 is available at irs.gov and it’s a simple form that can be filled out online. However, it must be submitted within 60 days of forming your corporation in order for it to be considered valid by law. Therefore, if you are filing this paperwork after 60 days have passed since forming your new business entity (e.g., corporation), then it may not be accepted by them until after those first two months have passed since incorporation was achieved through filing these documents with state officials or local courthouse clerks’ offices where applicable under state law requirements relating specifically towards businesses based within their jurisdiction limits only; this means there may be additional steps involved depending upon each individual situation regarding whether or not one chooses another method besides simply using online resources such as those found here: http://www..com/blog/how-do-i-file-my-own-business/.
If you are planning on starting a home improvement business in Connecticut, then it’s important to understand how to set up the proper corporate structure
If you are planning on starting a home improvement business in Connecticut, then it’s important to understand how to set up the proper corporate structure. The most common type of business structure for home improvement contractors is a corporation. However, there are several other options available if your goal is not to incorporate.
Corporations are more complicated than sole proprietorships or partnerships because they require formal paperwork with both federal and state governments (see below). You will also need an Employer Identification Number (EIN) from the IRS so that they can track your taxes separately from those of your individual employees’ wages.
If you are planning on starting a home improvement business in Connecticut, then it’s important to understand how to set up the proper corporate structure. It may seem complicated at first, but once you get the hang of it and get all the necessary paperwork filed with state agencies like the Secretary of State or IRS, things will go much smoother from there on out.
