If you want to organize your company into a specific business structure, you have a number of different options. Those options include corporations, limited liability companies, sole proprietorships, and limited partnerships (LP). The benefit of a limited partnership is that partners can limit their personal liability in the company to the amount of money they have put into the business. In Connecticut, you can establish your business as an LP by registering with the Connecticut Secretary of State’s office.

What Are the Requirements for an LP?

To form a LP in Connecticut, you have to create your own Certificate of Limited Partnership, which you will then need to file with the Connecticut Secretary of State. Your LP has to have at least two partners. One of these partners must be a general partner, who will be responsible for the running of the LP, and one of these partners must be a limited partner. The LP also has to choose a registered agent that can receive legal documents on the LP’s behalf.

What Paperwork Do I Need to Form an LP?

Unlike other states, Connecticut has not provided a standardized electronic or paper form for registering an LP. Instead, you have to create your own Certificate of Limited Partnership and send it in to the Secretary of State. In order to be valid, the Certificate of Limited Partnership must include the names and addresses of the LP, the registered agent, and the general partner. You must also state the date you want the LP to cease in existence if you have a date in mind. If you want the LP to begin at a time other than when you send in the form, you have to put that down, as well as any email address the LP has. You can also add any other information you want listed for your LP.

What Benefits Does Connecticut Give to an LP?

For people who are really in a rush to have their company registered as an LP, Connecticut does offer expedited processing. In exchange for a fee, the Connecticut Secretary of State will process a Certificate of Partnership in 24 hours.

What Disadvantages Does Connecticut Give to an LP?

There is a $250 business entity tax that an LP must pay on a biannual basis. If your LP owns property in Connecticut, it must also pay a controlling interest transfer tax if a controlling percentage of the property is sold. The tax is 1.11% of the value of the interest.

Should I Hire a Business Lawyer?

We make it easier to find a local business lawyer in Connecticut that can help you with your business needs. It is important to speak with a lawyer before forming a LP so that you are certain you are following all of the rules and requirements set by Connecticut.