Start a business in Eastern CT: a 10-Step Plan

Start a business in Connecticut with our 10-Step Plan, featuring resources from across the state and within the Chamber’s regional membership.

Step 1. Create a Business Plan

What is a business plan?
A business plan is a guide for your business that outlines your goals and details how you to plan to achieve them. Consider your business plan a “pitch” and keep it simple. The best business plans include:

A summary about your business
A company overview
Your products and/or services
Your target market
Marketing and/or sales plan
Milestones and metrics (how you will measure your success)
Organizational structure (who will perform what duties for your business)
Your financial plan (sales forecasts, profits and loss statements, cash flow statements)

Learn how to write a business plan and tips for formulating your business plan.

Who can help?

Business.ct.gov
Connecticut’s “digital front door” designed to help business owners and entrepreneurs navigate the entire business lifecycle.

CT Small Business Development Council

SCORE Business Mentors

Women’s Business Development Council

Step 2. Get Business Training

There are many free training and counseling services available to help you start and operate a business in Connecticut. Use this step to make sure your business plan is solid, finds ways to monetize and capitalize your business, and keep seeking education and resources to make sure your business can sustain and grow for many years to come.

Who can help?

Chamber of Commerce of Eastern Connecticut
The Chamber puts on many helpful business seminars and workshops on topics ranging from workplace relationships to maximizing the latest social media and marketing trends. Find a seminar happening soon.

Entrepreneur Academy
Offered annually by the Chamber of Commerce of Eastern Connecticut, this 8-week “business bootcamp” was designed by a Wesleyan University professor to refine your idea, develop a business plan, and launch your new business.

Connecticut’s Small Business Development Centers (CTSBDC)
The CTSBDC provides free advising services to new and existing business owners. They offer customized advising, business education, and resources for Connecticut’s entrepreneurs.

Goldman Sachs 10,000 Small Businesses
Free business training for new and growth-phase businesses presented in a hybrid setting

SCORE Business Mentors

Women’s Business Development Council

CEDF Training Schedule: Topics range from financing, compliance, HR, and more

Step 3. Choose a Business Location

Your location is one of the most critical factors that can make or break your business. Your business location must also comply with local zoning laws.

First, research and understand the economic data:

Also, certain types of businesses may benefit from investing in locations that have been designated for economic support:

Opportunity Zone
Enterprise Zone
HUBZone
Tax Increment Financing: TIF is a development finance tool that uses new or incremental tax revenue generated by a completed project to repay the costs incurred to fund it. Groton and other municipalities offer TIF districts; check with your town’s EDC.

If you don’t have a site selected, or want to make sure that your location is the best one possible, consult one of the resources below.

Who can help?

Chamber of Commerce-recommended realtors
Our member real estate agents and brokers know our community in and out; start with a professional for a thorough property search.

Connect with your local EDC & Municipality
Your local Economic Development Commission and/or municipality’s economic development department should connect you with zoning and permitting guidance, site selection, incentives, workforce programs, and local market data.

Co-Working

You may not need a building or storefront just yet. Co-working spaces are available throughout the region, including:

Regional Innovation Center, New London
The Chamber’s downtown co-working center offers daily, weekly, and monthly flex desks, on-site parking and EV charging, a comfortable “cafe” and wellness room, meeting spaces, and all-inclusive private offices.
Bio CT Innovations Commons, Groton
Foundry 66, Norwich

Step 4. Finance Your Business

There are many ways to get the money you need to start your business. Use the links below to find government-backed loans, venture capital, and grants that will help fund your business.

First, speak the language: ensure that you understand common yet critical financial terms and phrases. Check out this helpful Financial Glossary from Corporate Finance Institute.

If your business is already operating and generates revenue, ConnexMarkets, based out of Stamford, CT, is an innovative online tool to understand and explore your loan prospects: CXM Loans Calculator

Who can help?

Regional Banks & Credit Unions
These financial institutions are trusted members of the Chamber of Commerce of Eastern CT and are attentive, dedicated community partners. Many of our local banks offer education services supporting entrepreneurs. For example:
- Liberty Bank offers a Business Academy, including a $5,000 line of credit made available to graduates.
- Chelsea Groton Bank offers a Learning Hub with in-person event schedules, webinars, and articles.
- M&T Bank has an online Business Education Center with guides, audio playlists, and business spotlight opportunities.
- Dime Bank provides individual financial literacy/management education services.
Community Economic Development Fund (CEDF): non-traditional financing for small businesses, often in low to moderate-income communities
Connecticut Department of Economic & Community Development (DECD) Grants
C-PACE: financing for commercial properties for clean energy upgrades
Factor in the cost of insurance: Consider providers and options for business insurance
CT Small Business Development Center
SCORE Business Mentors
Women’s Business Development Council

Step 5. Determine Your Business' Legal Structure

There are many kinds of structures for your business, each with its own set of legal and tax responsibilities. Decide if you want to operate your business as:

A sole proprietorship
A partnership
A limited liability company (LLC)
A corporation
An S corporation
A non-profit business
A cooperative

Who can help?

Browse a list of local legal experts
Explore formation types and associated filing fees
Get an in-depth guide from the Small Business Administration

Step 6. Register Your Business

You will need to register your new business’ name with the Connecticut government – either with your local Town or City Clerk (such as operating as a sole proprietor or registering a trade name/DBA in that municipality) and with the State of Connecticut Secretary of State’s office, depending where your business is located.

Once your business is registered appropriately, you can secure your tax identification number from the IRS and the Connecticut Department of Revenue Services. Your tax identification number will be important when it comes time to file your taxes with the State.

Why Register?

People register a legal business to secure their business name exclusively, open a business bank account, and qualify for loans, grants, and tax incentives. It also builds credibility with customers and suppliers and helps protect personal assets from business lawsuits.

Who can help?

CT Business Records Search
Make sure the name you want is not already in use.
CT Town Clerks database
Find your NAICS number
NAICS stands for “North American Industry Classification System.” Businesses with the same code number make or do similar things.
Register your business with the State of Connecticut

Step 7. Register for State and Local Taxes

Once you have registered your business’ name, you will receive a tax identification number. This number will be used to determine what kinds of taxes your business will pay, and can also help determine tax savings that your business might enjoy. Visit this link (https://www.sba.gov/starting-business/filing-paying-taxes/determine-your-state-tax-obligations) to see tax information for doing business in the State of Connecticut.

Who can help?

The Small Business Administration has a breakdown of what taxes you could expect your business to pay.
Register your business on myConneCT, the state’s taxpayer portal
IRS Small Business & Self-Employed Tax Center

Step 8. Obtain Business Licenses and Permits

Your business will need various licenses and permits to do business in Connecticut, depending on the services you want to offer. Permits are required by both federal and state law. Visit the Small Business Administration’s list of required federal and state permits in the links below.

Step 9. Know Your Employer Responsibilties

There are some steps you will have to take in order to be able to legally hire employees for your new business. You will need to obtain an Employer Identification Number (EIN) and set up records for withholding taxes, as well as be able to carry out the steps required to become an eligible employer in the United States.

Learn more about employer responsibilities at business.ct.gov.

Who can help?

The Small Business Administration has a step-by-step guide that shows you how to become legally authorized to hire employees for your business and operate within the guidelines established by state and federal law.
IRS Employer’s Tax Guide
CTHires – the state’s free job board and jobseeker database
Human Resource Leadership Association and CBIA offer seminars and articles about HR best practices

Step 10: Use Your Local Resources

Now that your business is established, you’re legally able to do business in Connecticut, and maybe you’ve hired your first employee, you’ll need help making sure your business grows and succeeds. Use resources like your regional Chamber of Commerce or the Small Business Administration to learn how to manage your business, meet fellow business owners, get introduced to new clients, learn better business practices, enhance your service offerings, and much more.

Ready to celebrate? Schedule your ribbon cutting ceremony with the Chamber of Commerce of Eastern CT to gain exposure and welcome elected officials and regional peers into your new place of business.

Who can help?

The Chamber of Commerce of Eastern Connecticut
Local Business & Trade Associations
Women’s Business Development Council
For manufacturers:
- Network: CONNEX Connecticut is a supply-chain portal currently offered free to CT manufacturers
- Upskill: EWIB’s Incumbent Worker Training

Quick list of resources

Chamber of Commerce of Eastern CT Membership

Regional business directory

Business.ct.gov

AdvanceCT

CT Small Business Development Council

US Small Business Administration

CT Department of Economic & Community Development

SCORE Business Mentors

Southeastern CT Enterprise Region (seCTer)

Women’s Business Development Council

Upcoming Chamber Workshops

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