How to Start an LLC in Connecticut (2026 Guide)

Connecticut’s location between New York and Boston, its highly skilled workforce and its many affluent communities make it a strong market for professional services, trades and specialty retail. LLC costs are moderate: $120 to form and $80 a year. The state also repealed its old $250 business entity tax, so guides that still mention it are out of date.

What a Connecticut LLC costs

Item	Cost	When
Certificate of Organization	$120	At formation
Annual report	$80	January 1 to March 31, from the year after formation
Sales and use tax permit (if selling taxable goods or services)	$100	Before your first taxable sale
Trade name certificate (if using a DBA)	Set by the town clerk	When registering

Step 1: Choose your LLC name

The name must include "limited liability company", "LLC" or "L.L.C." and be distinguishable from other names on record with the Secretary of the State. Search the state’s business records, then check federal trademarks, domains and social handles with our business name checklist.

To trade under another name, file a trade name certificate with the town clerk in each town where you do business.

Step 2: Appoint a registered agent

Every Connecticut LLC needs a registered agent with a physical Connecticut address. You can serve yourself, name another adult or use a commercial agent.

Step 3: File the Certificate of Organization

File a Certificate of Organization with the Connecticut Secretary of the State online through the state’s business services portal, and pay $120. You’ll include the LLC’s name, principal office and mailing addresses, registered agent, and at least one manager or member, plus a business email address for notices. Online filings are generally processed quickly.

Step 4: Create an operating agreement

Connecticut doesn’t require you to file an operating agreement, but every LLC should have one, covering ownership, management, profit sharing and what happens when members join or leave.

Step 5: Get an EIN and open a bank account

Apply for a free EIN from the IRS online, then open a business bank account using your filed Certificate and EIN. See choosing a business bank account.

Step 6: Register for state taxes on myconneCT

A sales and use tax permit, which costs $100, if you sell taxable goods or services. Connecticut’s general sales tax rate is 6.35%, with higher rates for some items and services, such as meals and certain luxury goods.
Employer withholding, if you hire.

Employers also register with the Department of Labor for unemployment insurance.

Step 7: Get licenses and registrations

Home improvement contractors must register with the Department of Consumer Protection, and new home construction contractors register separately.
Electrical, plumbing, HVAC and other trades need occupational licenses.
Many professions are licensed by the Department of Public Health or other state agencies.
Local zoning approvals and permits apply for locations, signs and building work.

Step 8: File your annual report between January 1 and March 31

Every Connecticut LLC files an annual report with the Secretary of the State during a window from January 1 to March 31, starting the year after formation, for $80. The state sends reminders to the email address on file. LLCs that don’t file can be administratively dissolved.

The business entity tax is gone

For years Connecticut charged LLCs a $250 business entity tax every other year. It was repealed for tax years beginning after 2019, so new LLCs don’t owe it. If an older guide or service tells you to budget $250, it’s out of date.

How a Connecticut LLC is taxed

By default, LLC profits pass through to the owners, who pay federal income tax, self-employment tax and Connecticut’s graduated personal income tax. Multi-member LLCs taxed as partnerships file a Connecticut return. Connecticut’s pass-through entity tax was mandatory for some years but is now elective, letting eligible LLCs pay tax at the entity level, which can help owners with federal deduction limits. LLCs electing C corporation status pay Connecticut corporation business tax. Ask a tax professional which option suits you.

Hiring your first employee in Connecticut

Beyond the federal steps in our first employee guide, Connecticut employers generally:

Register for withholding with the Department of Revenue Services and unemployment insurance with the Department of Labor.
Carry workers’ compensation insurance, required once you have employees.
Withhold and remit CT Paid Leave contributions from employees’ wages.
Provide paid sick leave under Connecticut’s expanding requirements.
Report new hires to the state.

Your Connecticut LLC compliance calendar

Deadline	Filing	Paid to
January 1 to March 31 each year	Annual report ($80)	Secretary of the State
Monthly, quarterly or yearly	Sales and use tax returns	Department of Revenue Services
As assigned	Employer withholding, if you have employees	Department of Revenue Services
Quarterly	Unemployment insurance and CT Paid Leave contributions	Department of Labor; CT Paid Leave
As required	Contractor registration and license renewals	Consumer Protection; licensing boards

Example: state costs for your first two years

For a single-member LLC selling taxable goods:

	Year 1	Year 2
Certificate of Organization	$120	—
Sales and use tax permit	$100	—
Annual report	—	$80
State total	$220	$80

Without taxable sales, year one is $120. Add trade name certificates, contractor registrations and professional licenses. Use our startup cost calculator to plan.

Connecticut rules for common types of business

Food businesses. Restaurants and food trucks are licensed by local health departments. Connecticut’s cottage food law lets home cooks sell certain foods directly to consumers after obtaining a license. See our cottage food business guide.

Childcare. Child care centers and family child care homes are licensed by the state’s early childhood office. See our home daycare guide.

Professional services. Many Connecticut professionals work with clients in New York and Massachusetts too, which can mean registering the LLC in more than one state.

Connecticut compared with nearby states

State	Filing fee	Yearly state report
Connecticut	$120	$80
Massachusetts	$500	$500
New York	$200, plus newspaper publication	$9 every two years
Rhode Island	$150	$50

See our Massachusetts and New York guides if you work across state lines.

Fairfield County, Hartford or New Haven: choosing a base

Connecticut is small, but costs and customers differ across the state. Fairfield County’s businesses often serve New York-area clients and face higher rents and wages; the Hartford and New Haven areas offer access to insurance, healthcare, universities and manufacturing; and eastern Connecticut leans toward tourism, defense and smaller-town retail. Before choosing a location:

Check local zoning for your type of business and any home occupation rules.
Ask the town clerk about trade name filings and local permits.
Compare rents and wages, which vary widely between counties.
Consider cross-border work. Regular work in New York or Massachusetts may require registering your LLC there as well.

Include these figures in your break-even calculation before signing a lease.

Mistakes to avoid

Budgeting for the repealed $250 business entity tax.
Missing the January to March annual report window.
Forgetting the $100 sales tax permit before your first taxable sale.
Doing home improvement work without registering.
Forgetting trade name certificates with town clerks.
Letting the business email on file go stale, so annual report reminders never reach you.
Overlooking CT Paid Leave contributions when you hire your first employee.

Frequently asked questions

How long does it take to form a Connecticut LLC? Online filings are usually processed within a few business days, and you’ll receive confirmation by email once your LLC is approved.

When is my first annual report due? Between January 1 and March 31 of the year after your LLC is formed, and in the same window every year after.

Can I be my own registered agent? Yes, with a physical Connecticut address where you’re available during business hours. Your address becomes public.

Does a Connecticut LLC still pay the business entity tax? No. It was repealed for tax years beginning after 2019.

Is my LLC’s information public? Your LLC’s name, registered agent, addresses and listed managers or members appear in the state’s business records.

Next steps

Read the Start a Business A–Z guide, see hiring your first employee, and plan with the break-even calculator.

This guide is general information, not legal or tax advice. Fees and rules change; check the Connecticut Secretary of the State and Department of Revenue Services before you file.

Sources

Last reviewed October 18, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.