How to Start an LLC In Connecticut

Thinking about launching your own business in the Constitution State? Good news—forming a Connecticut LLC is easier than you might think! Whether you’re starting a side hustle, a full-time venture, or just want to protect your personal assets, setting up an LLC is a smart move.

In this guide, I’ll walk you through how to start an LLC in Connecticut step by step—without the confusing legal jargon. From picking the perfect business name to filing the right paperwork, I’ve got you covered. So, grab a cup of coffee (or whatever fuels your entrepreneurial spirit), and let’s get your Connecticut LLC up and running!

Want to do it yourself? No worries this guide will cover every step in detail to help you start an LLC in Connecticut by yourself.

Step-by-Step Guide to Start an LLC in CT

✅ Choose a Unique LLC Name

Picking the perfect name for your Connecticut LLC is kind of like naming a pet—you want something unique, memorable, and meaningful. But unlike a pet, your LLC name has to follow some legal rules. Let’s break it down in a simple, friendly way.

1. Follow Connecticut’s LLC Naming Rules

Before you get too excited about that genius business name, make sure it meets Connecticut’s requirements:

✅ Must include “LLC” – Your name needs “Limited Liability Company” or an abbreviation like “LLC” or “L.L.C.” at the end. Example: “Nutmeg Coffee Roasters LLC”

✅ Must be unique – Your name CANNOT be the same as (or too similar to) an existing Connecticut business. The Secretary of State won’t approve duplicates.

✅ No misleading words – Your name can’t falsely suggest it’s a bank, insurance company, or government agency unless you have permission. For example, “Connecticut Federal Banking LLC” wouldn’t fly unless you’re actually a federal bank.

✅ No restricted words without approval – Some words (like “Attorney” or “University”) need extra paperwork or licensing to be used in your LLC name.

2. Check If Your Name Is Available

Once you’ve got a name idea, don’t get attached just yet! You need to check if someone else already claimed it.

🔎 Search the Connecticut Business Name Database – Head over to the Connecticut Secretary of State’s website and use their business entity search tool to see if your name is already taken.

🔎 Google It – Even if the name is available in Connecticut, check online to make sure no other businesses (especially competitors) are using it elsewhere.

🔎 Check for Trademarks – Use the USPTO database (United States Patent and Trademark Office) to ensure your name isn’t trademarked by another company.

3. Grab the Domain Name

Even if you’re not planning a website right now, securing the domain name is smart. If your LLC name is available but the .com version is taken, you might want to tweak it slightly.

✅ Check domain availability on sites like GoDaddy or Namecheap
✅ Consider variations if the exact match is taken (e.g., adding “CT” to your name)
✅ Avoid weird spellings that are hard to remember

4. Avoid These Common Mistakes

🚫 Being too generic – A name like “Best Lawn Care LLC” is forgettable. Go for something catchy!
🚫 Using hard-to-spell words – If people can’t spell it, they can’t find it online.
🚫 Picking a name that’s too long – Short and simple is best.
🚫 Ignoring future growth – A name like “Hartford T-Shirts LLC” is limiting if you expand beyond t-shirts.
🚫 Forgetting about trademarks – Just because Connecticut allows it doesn’t mean it’s legally safe nationwide.

5. Reserve Your Name (Optional, But Helpful!)

Not ready to form your LLC just yet? Connecticut allows you to reserve a name for 120 days for a $60 filing fee. This ensures no one else takes your name while you finalize your business plans.

In short!

Choosing a unique name for your Connecticut LLC isn’t just about creativity—it’s about legality, branding, and future-proofing your business. Take your time, do your research, and pick a name that stands out without breaking the rules! 🚀

✅ Appoint a Registered Agent

Think of a Connecticut Registered Agent as your business’s legal messenger. They’re the ones who receive official documents on behalf of your LLC—things like tax notices, lawsuits (hopefully none of those!), and other government correspondence.

Here’s why having a Registered Agent is non-negotiable in Connecticut:
✅ Legal Requirement – The state requires every LLC to have a Registered Agent. No agent? No LLC.
✅ Ensures You Don’t Miss Important Notices – If your business gets served legal papers, you want to know ASAP.
✅ Keeps Your Business Compliant – The Registered Agent makes sure you don’t miss state deadlines, which can lead to penalties.
✅ Privacy Protection – If you don’t want legal papers showing up at your home or business in front of clients, a Registered Agent shields you.

Your Options for a Connecticut Registered Agent

When it comes to choosing a Registered Agent, you have three main options:

1. Be Your Own Registered Agent

Sounds simple, right? But here’s the catch:

• You must have a physical address in Connecticut (P.O. boxes don’t count).
• You must be available during normal business hours (9 AM–5 PM).
• Your address will be publicly listed on state records (goodbye, privacy!).

This option is fine if you’re okay with being available all the time and don’t mind your address being public.

2. Appoint a Friend, Family Member, or Employee

You can also appoint someone else as your agent, as long as they meet Connecticut’s requirements:

• They must be over 18.
• They must have a physical address in Connecticut.
• They must be available during business hours.

This can be a decent option if you have someone reliable and trustworthy, but it still comes with the same availability and privacy concerns.

3. Hire a Professional Registered Agent Service (Best for Most Business Owners!)

If you want peace of mind, privacy, and no legal headaches, hiring a professional Registered Agent service is your best bet.

A professional service:
✅ Ensures you never miss an important document
✅ Keeps your personal address private
✅ Gives you flexibility (so you’re not stuck at your office all day)
✅ Handles compliance reminders for annual reports and deadlines

So, Which Option Is Best for You?

✔ If you love paperwork and are always available? Be your own agent.
✔ If you trust someone reliable to handle official documents? Appoint a friend or employee.
✔ If you value privacy, reliability, and ease? Hire a professional Registered Agent.

Most business owners go with a professional service—it’s one less thing to worry about and keeps your LLC in good standing.

✅ File a Certificate of Organization

Before you can start doing business, you need to file a Certificate of Organization—which is basically the official birth certificate for your LLC. Don’t worry; the process is simple if you know what to do. Let’s break it down in an easy, no-nonsense way.

Step 1: Gather the Basics

Before filing, you’ll need a few key details:

✅ LLC Name – Connecticut requires your LLC name to be unique and include “Limited Liability Company,” “LLC,” or “L.L.C.” If you’re unsure whether your desired name is available, you can check the Connecticut Business Registry online.

✅ Principal Office Address – This is where your LLC’s main business activities happen. It doesn’t have to be a physical office, but it must be a valid mailing address.

✅ Registered Agent Details – Your LLC needs a registered agent in Connecticut. This is a person or company responsible for receiving legal documents on behalf of your LLC. You can be your own registered agent, or you can hire a professional service.

✅ Manager or Member Information – Connecticut asks for the names and addresses of at least one member (owner) or manager of the LLC.

✅ NAICS Code (Optional) – This is a classification code for your business type. It’s optional, but you can include it if you want.

Step 2: File the Certificate of Organization

Option 1: File Online (Fastest & Easiest!)

💻 Head over to the Connecticut Secretary of the State’s Business Services Division website and submit your Certificate of Organization online.

• Visit: Connecticut Business One-Stop
• Select “Register Your Business” and follow the prompts.
• Pay the $120 state filing fee using a credit/debit card.

Processing time? Usually 3 to 5 business days.

Option 2: File by Mail (Slower, but Still Works)

📄 If you prefer paper filings, download the Certificate of Organization (Form LLC-1) from the Connecticut Secretary of the State’s website.

• Fill out the form with all the required details.
• Mail it, along with a $120 check or money order, to:

📬 Mailing Address:
Business Service Division
Connecticut Secretary of the State
P.O. Box 150470
Hartford, CT 06115

Mailed filings take about 2-3 weeks to process.

Step 3: Get Your Confirmation 

Once your Certificate of Organization is approved, Connecticut will send you a confirmation, and boom—your LLC is officially registered! 🎉

Summary

Filing your Certificate of Organization in Connecticut is pretty straightforward if you follow the steps above. Whether you file online or by mail, just make sure everything is accurate to avoid delays.

And that’s it! Your Connecticut LLC is now official, and you’re one step closer to running your business like a boss. 🚀

✅ Create an Operating Agreement

Now, let’s talk about an Operating Agreement—your LLC’s rulebook. While Connecticut doesn’t require one, having one is like having GPS for your business—it keeps things running smoothly and prevents future headaches.

Here’s what your LLC Operating Agreement should include (without the boring legal jargon).

1. The Basics (Who, What, Where)

Start with the simple stuff:
✅ LLC Name – Make sure it matches your official name registered with the Connecticut Secretary of State. No funny business.
✅ Principal Office Address – Where your business officially “lives.”
✅ Formation Date – The LLC’s birthday! 🎂
✅ Registered Agent – The person (or company) responsible for handling legal notices.

2. Who Owns What? (Ownership Details)

If your LLC has multiple members, you need to spell out ownership—trust me, this avoids drama later.

🔹 Members’ Names & Addresses – Everyone’s full name and where they live.
🔹 Ownership Percentages – Who owns what chunk of the LLC (e.g., 50/50, 60/40, etc.).
🔹 Initial Contributions – How much money, property, or sweat equity each member puts in.
🔹 Future Contributions – If you ever need to put in more money, how will that work?

3. Who’s the Boss? (Management & Decision-Making)

Your LLC can either be member-managed (run by owners) or manager-managed (where you hire someone to handle operations). Decide which works best for your team.

✔ Who Makes the Big Decisions? – Does every member get an equal vote, or does it depend on ownership percentage?
✔ Managers (If Any) – Who’s running the day-to-day operations? What powers do they have?
✔ Voting Rules – Is a simple majority enough, or do major decisions need unanimous consent?

4. Show Me the Money! (Profit & Loss Sharing)

This part covers how you and your business partners get paid.

💰 How Profits & Losses Are Split – Typically, profits match ownership percentages, but you can set different rules.
💰 When & How Payments Happen – Quarterly, annually, or when the business can afford it?
💰 Reinvesting in the Business – Will profits be used to grow the company before being distributed?

5. Taxes & Business Finances

Let’s keep Uncle Sam happy by clarifying how taxes and money matters will be handled.

📌 Tax Treatment – Will your LLC be taxed as a pass-through entity (default), an S-corp, or a C-corp?
📌 Business Bank Account – All LLC money should be kept separate from personal funds (no mixing!).
📌 Fiscal Year – Your accounting year—typically, January to December unless you choose otherwise.

6. What Happens If Someone Leaves? (Membership Changes)

No one likes to think about breakups, but in business, it’s better to be prepared.

🔄 Adding New Members – If someone wants in, what’s the process?
🚪 If a Member Leaves (or Worse, Dies) – Does the LLC continue? Do remaining members buy out their share?
❌ Selling or Transferring Ownership – Can members sell their stake freely, or does the LLC have first dibs?

7. Shutting Down (Just in Case)

If you ever need to close shop, make sure it’s done properly.

🏁 Dissolution Triggers – What events could lead to closing the LLC? (Unanimous vote, bankruptcy, etc.)
📜 Debt & Asset Distribution – How do you handle remaining assets and debts when shutting down?

8. Resolving Disputes (Because Business Partners Don’t Always Agree)

Disagreements happen—even among the best business partners. Have a plan to handle conflicts professionally.

⚖ Mediation vs. Arbitration vs. Court – Will you settle disputes through friendly discussions, legal mediation, or court?
📍 Governing Law – Connecticut laws will apply to your LLC, so put that in writing.

9. The “Catch-All” Section (Miscellaneous)

This is where you add any final rules to keep your LLC running smoothly.

✔ How to Make Changes to This Agreement – Need a unanimous vote? A majority?
✔ Severability Clause – If one part of this agreement is invalid, the rest still stands.

10. Sign on the Dotted Line! ✍

Finally, everyone in the LLC needs to sign this agreement to make it official. While notarization isn’t required, it’s a smart move to add extra legal protection.

In short!

Even though Connecticut doesn’t require an Operating Agreement, having one keeps everyone on the same page and protects your business. Think of it as a business prenup—better to have it and not need it than to need it and not have it.

Want a custom Operating Agreement template tailored to your LLC? Let me know—I’d be happy to help! 🚀

• ✅Obtain an EIN (Employer Identification Number)
• You’ll probably hear the term EIN (Employer Identification Number) thrown around a lot. But what exactly is it, and why does your LLC need one?Think of an EIN as a Social Security Number (SSN) for your business. It’s a unique 9-digit number assigned by the IRS to identify your LLC for tax purposes. Even if your LLC has no employees, an EIN is often necessary for things like opening a business bank account, filing taxes, hiring employees, and applying for business licenses.So, unless you plan to keep your LLC completely off the grid (which is not a good idea), getting an EIN is a smart move. The best part? It’s completely FREE to obtain one from the IRS.
  

  Who Needs an EIN for Their Connecticut LLC?

  Not every single LLC is required to have an EIN, but most will benefit from having one. Here are the main reasons you might need it:

  ✔️ You have employees – If you plan to hire staff, the IRS requires you to have an EIN.

  ✔️ You want to open a business bank account – Most banks won’t let you open an account without one.

  ✔️ Your LLC has multiple members – If your LLC is a multi-member LLC, the IRS requires an EIN even if you don’t have employees.

  ✔️ You choose to be taxed as an S-Corp or C-Corp – If you elect S-Corporation or C-Corporation tax status, an EIN is a must.

  ✔️ You plan to apply for business credit or loans – An EIN helps establish your business identity with lenders.

  ✔️ You’re selling products and need a sales tax permit – Some Connecticut businesses need an EIN for tax registration purposes.

  Even if you’re a single-member LLC with no employees, it’s still highly recommended to get an EIN. Many vendors, banks, and payment processors prefer dealing with EINs rather than personal SSNs to keep your business finances separate from personal finances.

  How to Obtain an EIN for Your Connecticut LLC

  The good news? Getting an EIN is easy and FREE. You can apply directly with the IRS in just a few minutes. Here’s how to do it:

  1. Apply Online (The Fastest and Easiest Way 🚀)

  • Go to the IRS EIN application page: IRS EIN Application
  • Click “Apply Online Now” and follow the step-by-step prompts.
  • Once completed, you’ll get your EIN immediately (PDF confirmation available to download).
  • Important: The online application is only available Monday to Friday, 7 AM – 10 PM Eastern Time and is for U.S. residents only.

  2. Apply by Fax (Fast but Not Instant 📨)

  • Fill out Form SS-4 (Employer Identification Number Application).
  • Fax the completed form to the IRS at (855) 641-6935.
  • If you provide a return fax number, you’ll receive your EIN in about 4 business days.

  3. Apply by Mail (The Slowest Option 🐌)

  • Fill out Form SS-4 just like the fax method.
  • Mail it to:
    Internal Revenue Service
    Attn: EIN Operation
    Cincinnati, OH 45999
  • Expect to wait about 4-5 weeks to receive your EIN by mail.

  4. Apply by Phone (For International Applicants ☎️)

  If you don’t have an SSN, ITIN, or U.S. address, you cannot apply online but can apply by calling the IRS.

  • Dial +1 (267) 941-1099 (Not toll-free).
  • Hours: Monday to Friday, 6 AM – 11 PM Eastern Time.
  • The IRS representative will take your information over the phone and assign your EIN immediately.

  What to Do After Getting Your EIN?

  Once you receive your EIN, don’t just let it sit in your inbox! Here’s what to do next:

  ✔️ Save it somewhere safe – The IRS doesn’t reissue EIN confirmation letters, so keep a copy for your records.

  ✔️ Use it to open a business bank account – Most banks require an EIN for an LLC checking account.

  ✔️ Register for Connecticut state taxes (if required) – Depending on your business activities, you may need to register with the Connecticut Department of Revenue Services.

  ✔️ Use it when filing taxes and applying for business licenses – You’ll need it for tax filings and some business registrations.

  In Short!

  Getting an EIN is a quick, free, and essential step for most Connecticut LLCs. Even if you don’t strictly need one, it’s a smart business practice to have it for banking, credit, and legal purposes.

  So, if you haven’t grabbed yours yet, take a few minutes and get it done. It’s one of the easiest things you can check off your business to-do list!

• ✅ Comply with State Tax and Licensing Requirements

• There are some state tax and licensing obligations you’ll need to take care of. Here’s what you need to know:
  

  1. Register for a Connecticut Tax Registration Number (If Required)

  Depending on the nature of your business, you may need to register with the Connecticut Department of Revenue Services (DRS) for state taxes. If you’re selling goods, providing taxable services, or hiring employees, this is a must.

  • Sales and Use Tax – If your business sells physical products or certain taxable services, you need a Sales and Use Tax Permit from the DRS. This permit allows you to collect sales tax from customers and send it to the state.
  • Withholding Tax – If you’re hiring employees, you’re required to withhold state income tax from their paychecks and remit it to the DRS.
  • Business Entity Tax (BET) – Gone! – Good news! Connecticut eliminated the $250 Business Entity Tax (BET) in 2020, so that’s one less thing to worry about.

  How to Register?
  You can register for the necessary state tax accounts online through the myconneCT portal (portal.ct.gov/DRS). It’s fairly straightforward, but make sure you know what taxes apply to your business before registering.

  2. Obtain Necessary Business Licenses and Permits

  Connecticut doesn’t have a statewide general business license, but your business may still need certain licenses or permits depending on what you do.

  Where Do You Check?

  • Local Town/City Clerk – Many towns and cities in Connecticut require a local business license or permit. Always check with your town clerk’s office.
  • Connecticut Department of Consumer Protection (DCP) – If you’re in a regulated industry (e.g., contractors, real estate, food services, salons), you’ll likely need a state license from the DCP.
  • Specialty Licenses – Certain professions (like lawyers, doctors, and accountants) require industry-specific licenses.

  Pro Tip: To make things easier, use the Connecticut Business Licensing Info Center (ct.gov/dcp) to find out what licenses apply to your business.

  3. File Your Annual Report (Don’t Skip This!)

  Every Connecticut LLC must file an Annual Report with the Secretary of the State. It costs $80 per year and keeps your LLC in good standing.

  Deadline: March 31st every year. Mark your calendar, or better yet, set a reminder on your phone so you don’t forget.

  4. Stay Compliant with Connecticut Unemployment and Workers’ Compensation Rules

  If you have employees, you’ll need to:

  • Register for Unemployment Insurance – You’ll do this with the Connecticut Department of Labor (DOL) at www.ctdol.state.ct.us.
  • Provide Workers’ Compensation Insurance – Connecticut requires most businesses with employees to have workers’ compensation insurance. You can get coverage through a private insurer.

  5. Keep Up with Local Property Taxes (If You Have a Physical Location)

  If your LLC owns business property (like equipment, furniture, or even an office space), you may owe local property taxes to your town or city. Each municipality handles this differently, so check with your local tax assessor.

  Stay Organized, Stay Compliant!

  I know, taxes and licenses aren’t exactly the fun part of running a business, but staying compliant keeps your Connecticut LLC in good standing. The best way to avoid headaches? Stay organized! Keep track of deadlines, file what’s needed, and check in with the state if you’re unsure.

  Now, go forth and run your business like a boss—Connecticut style! 🚀

• ✅ File an Annual Report

• Connecticut wants to hear from you once a year through something called an Annual Report. It’s not as scary as it sounds, and I’ll walk you through the whole process so you can get it done quickly and painlessly.
  

  What’s an Annual Report?

  Think of it as a little “Hey, I’m still here!” message to the Connecticut Secretary of State. It keeps your LLC’s info up to date, including your business name, address, and registered agent details. It’s also a legal requirement, so skipping it can lead to bad news (like your LLC getting dissolved—yikes!).

  Due Date & Cost

  • Due Date: Every year on March 31st (unless your LLC was formed in the current year, in which case you get a pass until next year).
  • Filing Fee: $80 (as of now—always check for updates!).

  How to File Your Connecticut LLC Annual Report

  You’ve got two ways to file:
  ✅ Online (Super Easy)
  ✅ By Mail (Takes Longer, But Still an Option)

  Let’s go with the online method because it’s faster and more convenient.

  Step-by-Step Guide to Filing Online

  1️⃣ Go to the Connecticut Business Filings Portal

  • Visit the CT Secretary of State’s website.
  • Click on “File an Annual Report“ under Business Services.

  2️⃣ Search for Your LLC

  • Enter your LLC name or Business ID number.
  • Select your business from the list.

  3️⃣ Review & Update Info

  • Double-check your LLC details (business name, address, and registered agent).
  • Make any necessary updates to keep everything accurate.

  4️⃣ Pay the Filing Fee

  • Use a credit/debit card to pay the $80 fee.
  • You’ll get a confirmation email once it’s processed.

  🎉 And that’s it—you’re done!

  Filing By Mail (If You Prefer Old School)

  1. Download the Annual Report form from the Connecticut Secretary of State website.
  2. Fill it out with your LLC details.
  3. Write a check for $80 payable to the “Secretary of the State.”
  4. Mail everything to:
     Business Services Division
     Connecticut Secretary of the State
     P.O. Box 150470
     Hartford, CT 06115-0470

  🚨 Important Note: If you file by mail, it will take longer to process—so don’t wait until the last minute!

  What Happens If You Don’t File?

  If you miss the March 31st deadline, Connecticut won’t charge a late fee, but if you ignore it for too long, your LLC could get dissolved. And trust me, reinstating an LLC is way more of a headache than filing this simple report!

  Summary!

  Filing your Connecticut LLC Annual Report is super easy, and now that you know how to do it, you’re ahead of the game! Set a reminder every year so you don’t forget, and your business will stay in good standing.

  What else should I do Once my LLC is Formed?

• There are a few more things to take care of to make sure your business runs smoothly and legally. Don’t worry, I’ve got your back. Let’s go through what you need to do next in a fun, simple way.
  

  Open a Business Bank Account 💰

  Mixing personal and business finances is a big no-no. Keep things clean by opening a business checking account. This makes accounting easier and protects your personal assets in case of legal trouble.

  📝 What You Need to Open a Business Account:

  • Your EIN
  • Your LLC’s approved Articles of Organization
  • Your Operating Agreement (some banks ask for this)

  💡 Pro Tip: Check out local credit unions and online business banks for lower fees and better perks!

  Get Business Insurance (Better Safe Than Sorry!) 🔒

  Even if you’re running a small, low-risk business, insurance is a smart move. Consider:

  ✅ General Liability Insurance – Covers accidents, lawsuits, and unexpected disasters.
  ✅ Professional Liability Insurance – If you offer services, this protects you from client lawsuits.
  ✅ Workers’ Comp Insurance – Required if you have employees in Connecticut.

  Not sure what you need? A quick chat with an insurance agent can help.

  8️⃣ Set Up Business Accounting (Avoid Tax Season Headaches!) 📊

  Even if you hate numbers, keeping your books organized is super important.

  💰 Here’s what you can do:
  ✔️ Get accounting software like QuickBooks or Wave.
  ✔️ Hire a bookkeeper or CPA (especially if taxes stress you out). 
  ✔️ Track all expenses and income (so you don’t miss tax deductions).

  Staying on top of your finances now saves you a massive headache later!

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  Running a business is exciting—until bookkeeping becomes a **time-consuming nightmare**.
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  • ✅ Effortless Bookkeeping – Stay focused on growing your business.
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• 9️⃣ Build Your Online Presence (Get More Customers!) 🌍

  Now that your LLC is official, let the world know!

  🚀 Must-Have Steps:

  • Secure a domain name (yourbusiness.com) Grab a domain name from Registered Agents Inc. for $4.95 for the first year
  • Set up a professional business email (no more @gmail.com)
  • Create a business website (even a simple one helps)
  • Set up Google My Business for local searches
  • Get social media accounts (Facebook, LinkedIn, Instagram, etc.)

  A strong online presence = more customers.

  Start Getting Clients & Growing Your Business! 🚀

  Your Connecticut LLC is ready to roll—now it’s time to get customers and make money! Whether you’re offering services, selling products, or running an online business, focus on marketing, networking, and delivering amazing value.

  💡 Final Tip: Running an LLC is a journey, but you’ve already taken the hardest step—starting. Keep going, keep learning, and keep growing!

• How My Connecticut LLC Will be Taxed

• Now, let’s talk about taxes (I promise to keep this fun).Here’s the deal: LLCs are flexible, and Connecticut has a few tax rules you should know about. Let’s break it all down.
  

  1️⃣ Federal Taxes – The IRS Wants a Cut

  By default, your Connecticut LLC is a pass-through entity, which means:
  ✔ The LLC itself doesn’t pay federal income tax.
  ✔ You pay taxes on your personal tax return.

  The IRS sees your LLC as part of you—unless you tell them otherwise. Here’s how it works:

  • Single-Member LLC = Taxes works like a sole proprietorship. You’ll report profits and losses on Schedule C of your personal tax return.
  • Multi-Member LLC = The IRS treats it like a partnership, and you’ll file Form 1065 plus K-1s for each member.
  • Electing S-Corp or C-Corp Status = If you want to save on self-employment taxes, you can file Form 2553 to become an S-Corp. A C-Corp means double taxation, so… most small LLCs avoid it.

  Bottom Line? If you do nothing, the IRS automatically taxes you as a pass-through entity. But if you want some potential tax savings, an S-Corp election might be worth looking into.

  2️⃣ State Taxes – What Connecticut Wants From You

  Connecticut isn’t shy about taxes, so here’s what you need to know:

  ✅ Business Entity Tax (BET) – GONE! 🎉

  Good news! As of January 1, 2020, Connecticut no longer charges the $250 Business Entity Tax (BET). That’s one less thing to worry about!

  🏛 Pass-Through Entity Tax (PET) – The Unique Connecticut Tax

  • Connecticut does things differently. Instead of making LLC members pay state income tax on their share of profits, the LLC itself pays a Pass-Through Entity Tax (PET).
  • The current rate is 6.99% of your LLC’s income.
  • But don’t panic! The state gives a tax credit, so you might get some or all of it back when filing your personal taxes.

  🏠 State Income Tax – Because Connecticut Wants More

  • Your personal income tax rate depends on how much you make, ranging from 3% to 6.99%.
  • This applies to LLC owners who live in Connecticut (or earn Connecticut-sourced income).

  💰 Sales Tax – If You Sell Stuff, Connecticut Wants a Cut

  • Selling products? You need to collect and remit Connecticut’s 6.35% sales tax.
  • Selling services? Most services aren’t taxable, but some are (like digital goods and specific repairs).
  • You’ll need to register for a Sales and Use Tax Permit with the Connecticut Department of Revenue.

  3️⃣ Self-Employment Tax – The One Nobody Likes

  If your LLC’s profits go straight to you (which is normal for pass-through LLCs), you’re on the hook for self-employment taxes—which is a hefty 15.3%.

  That covers:
  ✔ 12.4% for Social Security
  ✔ 2.9% for Medicare

  If you make a lot, you might owe extra Medicare tax beyond certain income levels. This is why some LLC owners choose to elect S-Corp status—to pay themselves a reasonable salary and take the rest as distributions (which aren’t hit with self-employment tax).

  4️⃣ Deductions & Tax Breaks – Keep More Money in Your Pocket

  Nobody wants to overpay taxes, so here are a few ways to lower your bill:

  ✔ Business expenses – Anything necessary for your LLC (equipment, software, rent, marketing, etc.) is tax-deductible.
  ✔ Home office deduction – If you work from home, part of your rent, utilities, and internet might be deductible.
  ✔ Health insurance deduction – If you’re self-employed, your health insurance premiums may be deductible.
  ✔ Retirement contributions – Contributing to a SEP-IRA or Solo 401(k) can reduce your taxable income.

  What Should You Do Next?

  ✅ Know your default tax classification. If you don’t make an election, you’re taxed as a pass-through entity.
  ✅ Stay on top of Connecticut’s Pass-Through Entity Tax (PET). Your LLC has to file and pay this!
  ✅ If you sell products, register for sales tax. Connecticut wants its 6.35%.
  ✅ Consider an S-Corp election if you want to save on self-employment tax.
  ✅ Track deductions to lower your tax bill.

  That’s it! Connecticut taxes aren’t the worst, but they do have their quirks—especially the PET. As long as you keep up with your obligations, you’ll be just fine. 🚀

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FAQs: How to Start an LLC in Connecticut – Explained Simply!

1. How much does it cost to start an LLC in Connecticut?

Starting your Connecticut LLC will cost you $120. That’s the one-time state filing fee to submit your Certificate of Organization. No sneaky hidden fees—just a straightforward charge to make your business official! 🎉

2. Do I need to reserve my LLC name before filing?

Nope! Name reservations are optional in Connecticut. If your dream LLC name is available when you file, you can grab it right then and there. But if you want to hold onto a name before filing, you can reserve it for 120 days by paying $60.

3. How long does it take to form an LLC in Connecticut?

• Online filings: Usually processed in 3-5 business days.
• Mailed filings: Take a bit longer—around 2-3 weeks (because snail mail is slow 🐌).

There’s no expedited filing option in Connecticut, so if you’re in a hurry, online filing is your best bet.

4. Do I need a registered agent for my LLC?

Yes! Every Connecticut LLC needs a registered agent—a person or company that receives legal documents on behalf of your business.

You can:
✅ Be your own registered agent (if you have a physical address in Connecticut).
✅ Hire a professional registered agent service (great for privacy and peace of mind).

5. Does Connecticut require an Annual Report for LLCs?

Yes, and it comes with an $80 annual fee. Your Annual Report is due by March 31st every year. It’s just a quick update to keep your LLC in good standing.

6. Do I need an Operating Agreement for my LLC?

Not legally, but it’s super important to have one! An Operating Agreement lays out the rules of your LLC, including ownership details, decision-making processes, and what happens if a member leaves. Even if you’re a one-person LLC, this document helps keep things organized and professional.

7. Do I need an EIN (Employer Identification Number)?

If you’re planning to:
✔️ Hire employees
✔️ Open a business bank account
✔️ File taxes as an S-Corp or C-Corp

Then, yes, you need an EIN. If you’re a single-member LLC with no employees, you might not legally need one—but it’s highly recommended for banking and tax purposes. Plus, it’s free to get an EIN from the IRS website.

8. Do I need a business license to run an LLC in Connecticut?

Connecticut doesn’t have a general business license, but some industries require specific permits. It all depends on what kind of business you’re running. Check with the Connecticut Department of Revenue Services or your local government to see if you need any special permits.

9. What taxes do Connecticut LLCs have to pay?

Good news! Connecticut no longer charges the Business Entity Tax (BET). However, your LLC might still need to pay:

• State income tax (if you make a profit, it’s reported on your personal tax return).
• Sales tax (if you’re selling goods or taxable services, you’ll need a Sales Tax Permit).

10. Can a non-resident start an LLC in Connecticut?

Absolutely! You don’t have to live in Connecticut to form an LLC here. The only requirement? You must appoint a registered agent with a physical address in the state.

11. What’s the difference between a domestic and foreign LLC?

• A domestic LLC is an LLC formed in Connecticut.
• A foreign LLC is an LLC formed in another state but wants to expand and do business in Connecticut. If that’s you, you’ll need to register as a Foreign LLC for $120.

12. Can I change my LLC name later?

Yes! If you ever want to rebrand, you can change your LLC’s name by filing an Amendment to the Certificate of Organization with the Connecticut Secretary of State. The filing fee for this is $120.

13. How do I dissolve my LLC if I decide to close it?

If you ever need to close your LLC, you’ll need to file Articles of Dissolution and pay a $50 fee. Also, don’t forget to cancel any business licenses and notify the IRS so you don’t get stuck with unnecessary tax obligations.

14. Can I run a Connecticut LLC from home?

Yes! Plenty of home-based businesses operate as LLCs. Just make sure to check your local zoning laws, especially if customers will be visiting your home.

15. What’s the easiest way to start an LLC in Connecticut?

The fastest and simplest way is to file online through the Connecticut Secretary of State website. If you don’t want to deal with the paperwork, you can hire an LLC formation service to handle everything for you.

The material on this website is intended for general information purposes only and should not be construed as legal, tax, or financial advice. Laws and regulations vary by jurisdiction and might change over time. It is critical to obtain specialized guidance that fits your individual situation. The opinions presented here are purely those of the writers and should not be considered professional advice. For any legal or tax-related issues, it is best to speak with a certified specialist who can give specialized advice based on your specific circumstances.