Connecticut. The Constitution State. The 5th state to join the union. With Nathan Hale as your state hero and "Yankee Doodle" as your state song, you're as New England as it gets. P. T. Barnum and Mark Twain, two icons of Americana, can be proud to call themselves Connecticutians of the Nutmeg State.
Connecticut is also a state of diverse culture and business opportunity. While you do have the 3rd highest tax rates in the country, the state has also made it easy to open and run your own business. And because your service will be relatively simple and require few licenses/permits/startup costs, you won't be heavily burdened with taxation.
In this article you'll find clear step-by-step advice on how to legally create your escort service within the state of Connecticut. For more information on why it's vitally important to register your business, refer to our article Don't get busted for tax evasion: Why registering your escort business is the only option.
For more information on these specifications in Connecticut go to the Connecticut Licensing Info Center.
Step four: Register your business / business name
Sole Proprietorship:
In Connecticut you are not required to register your name or a DBA name if it is your name and service: "Jane Doe's Escort Service". However, if you take on any other form of a DBA name, you have to register it with your county clerk's office. For more information on if taking on a DBA is a good choice for your business, refer to our article Do I Want To Be A Sole Proprietor?
To register your DBA name in Connecticut, download the Name Reservation form at the website for the Connecticut Secretary of State. A $60 filing fee is required.
Partnership:
In Connecticut you are not required to register your name or a DBA name if it is the name of the partners in the partnership agreement and the service you provide. However, if you take on any other form of a DBA name, you have to register it with your county clerk's office.
To register your DBA name in Connecticut, download the Name Reservation form at the website for the Connecticut Secretary of State. A $60 filing fee is required.
Corporation:
To register your corporation in Connecticut you'll have to file your Articles of Incorporation, which includes all officers and managers of the company and their contact information. You have the option of registering as a non-stock or a stock corporation. If you're new to owning a small business, keep it simple and own a corporation where the divisions of stock are not automatically defined. A $150 filing fee applies for all-profit corporations. Download the form from the Secretary of State's website.
You'll then have to register your business name with the state. To do so, download the Name Reservation form at the website for the Connecticut Secretary of State. A $60 filing fee is required.
LLC:
In Connecticut, you need to file Articles of Organization and send it to your Secretary of State along with a $120 filing fee. This contains basic information about the members and managers of the company, what it does and where it runs. Connecticut requires a bit more description than other states, so make sure you've referred to our article The fine legal line between escort and prostitute: some strategies for an escort to stay out of trouble.
You can download the form and get more information under Connecticut Limited Liability Companies at the Secretary of State's website.
You'll then have to register your business name with the state. To do so, download the Name Reservation form at the website for the Connecticut Secretary of State. A $60 filing fee is required.
For more information on registering in Connecticut no matter your structure, go to the Connecticut Secretary of State Forms Index.
Step six: Register for your Connecticut state and local city taxes
There are a few basic types of taxes small businesses in Connecticut may register for. You can register for a tax-registration number in Connecticut and get answers to your specific questions at the Connecticut Department of Revenue Services.
- Individual Income Tax: The state collects income tax on each person making a profit in Connecticut. If you're a sole proprietor or LLC, you'll file your business profits/losses along with your personal income tax. For more information on each of these models and the forms you'll have to file, go to Connecticut Department of Revenue Services. If you're a partnership, you'll also have to file a CT-1065 form.
- Taxes on LLCs, limited partnerships and corporations: There is an annual tax of $250 on each corporation, LLC or limited partnership. You'll have to be registered with the Department of Revenue Services or download the OP-424 form.
- If you have employees:If you have paid employees that are not members or owners of your company, you'll have to withhold a portion of their wages for social security and Medicaid. File the applicable forms online.
- Self-Employment Taxes: If you own and operate your business and are not paid as an employee, you'll need to file your own self-employment taxes for social security and Medicaid. This is particularly true for sole proprietorships, general partnerships and LLCs. Download form 1040 or get more information.
- Other state / city taxes: Chances are there are no other small taxes you'll be required to pay, but more information should be read at the Department of Revenue Services.
Also consider information on business taxes in Connecticut at the Office of Small Business Affairs.
Step seven: Get necessary licenses and permits
There is no one basic "business license" in Connecticut, and chances are your city won't require you have one. But it's a smart idea to check with your city to make sure that nothing extra is required when setting up your small business.
More information
Find out how to register an escort business in each state of the USA.
Related resources:
Please note: Dating.com is not a legal service, nor are we tax advisors or accountants. We do offer you what we consider our best advice, but if at all in doubt, please consult a professional.
