Benefits of Starting an LLC in Connecticut
Connecticut offers several distinct advantages for LLC owners, from flexible entity structures to a straightforward formation process. Here is what makes the state stand out.
Series LLC Option
Connecticut is one of the few states that allows series LLCs, letting you create separate divisions with isolated liabilities under a single parent entity.
No Publication Requirement
Unlike New York and a handful of other states, Connecticut does not require you to publish a newspaper notice after forming your LLC, saving you hundreds of dollars.
No Business Entity Tax
Connecticut repealed its Business Entity Tax, which means your LLC no longer owes a flat-rate tax simply for existing in the state.
Fast Online Filing
Online filings are typically processed within 2 to 3 business days, and 24-hour expedited processing is available for an additional $50.
Quick Facts Connecticut LLC
1Name Your Connecticut LLC
Your LLC name must be distinguishable from any existing business entity registered in Connecticut. It must also include one of these designators: “Limited Liability Company,” “LLC,” or “L.L.C.”
Connecticut also prohibits names that imply your LLC is a government agency or that include restricted words like “bank,” “insurance,” or “university” without proper licensing or authorization.
Before committing to a name, run a search on the Connecticut business name database to confirm availability.
Reserving Your LLC Name
If you are not ready to file right away, you can reserve your desired name for 120 days for a $60 fee. This gives you time to finalize your plans without losing the name to someone else.
Yes. If you want to operate under a different name than your legal LLC name, you can register a trade name (DBA) with the town clerk in the municipality where you do business. This does not change your legal entity name but allows you to market under a different brand.
2Choose a Registered Agent in Connecticut
Every Connecticut LLC must designate a registered agent. This is the person or company authorized to receive legal documents, service of process, and official state correspondence on your LLC’s behalf.
Your registered agent must meet these requirements:
- Be a natural person who is a resident of Connecticut, or a business entity registered with the Secretary of the State
- Have a physical street address in Connecticut (P.O. boxes do not qualify)
- Be available during normal business hours to accept documents
You have three main options:
- Act as your own registered agent. Free, but your personal address becomes public record and you must be available at that address during business hours every weekday.
- Appoint a friend or family member. Also free, but places a real responsibility on them and still requires a Connecticut address.
- Hire a professional registered agent service. Costs roughly $50 to $300 per year. Keeps your personal address off public filings, provides reliable availability, and often includes document scanning and forwarding. You can compare Connecticut registered agent services to find the best fit.
Yes. Connecticut law requires every LLC to maintain a registered agent with a physical address in the state at all times. If your agent resigns or becomes unavailable and you do not appoint a replacement, your LLC risks falling out of compliance.
Our Pick for Registered Agent
Northwest Registered Agent
Northwest provides a Connecticut street address, scans and forwards all legal documents, and shields your personal address from public filings.
We recommend Northwest for their transparent pricing, privacy-first approach, and responsive customer support.
3File Your Certificate of Organization
The certificate of organization is the document that legally creates your Connecticut LLC. You file it with the Secretary of the State, either online or by mail.
The certificate of organization requires the following information:
- LLC name (including “LLC” or “Limited Liability Company”)
- Mailing address of the LLC
- Name and street address of the registered agent
- Name and address of at least one LLC member or manager
- Whether the LLC will be member-managed or manager-managed
- Effective date (can be the filing date or a future date)
| Filing Method | Fee | Processing |
|---|---|---|
| Online | $120 | 2-3 business days |
| $120 | 3-4 weeks | |
| Expedited (online) | $170 | 24 hours |
Online filing is the fastest and most reliable option. You will receive confirmation and can access your filing documents through the state’s online portal.
If you prefer to file by mail, download the form and send it with a check or money order for $120 made payable to “Secretary of the State.”
Mail Filing Address
Business Services Division
Connecticut Secretary of the State
P.O. Box 150470
Hartford, CT 06115-0470
Want to have a professional handle the entire filing for you? You can compare Connecticut LLC formation services to find one that fits your budget.
Want someone to handle all this for you?
ZenBusiness
ZenBusiness prepares and files your Connecticut certificate of organization, handles compliance reminders, and gets you up and running without the paperwork.
Their free starter plan covers formation filing and a year of registered agent service, making it the most affordable hands-off option.
4Get an EIN for Your Connecticut LLC
An Employer Identification Number (EIN) is a federal tax ID for your business. You need one to open a business bank account, hire employees, and file taxes. The IRS issues EINs for free, and you can apply online in about five minutes. Your EIN is issued immediately upon completion.
5Draft Your Connecticut LLC Operating Agreement
Connecticut does not legally require an operating agreement, but you should create one regardless. This internal document defines how your LLC is owned, managed, and operated. Without one, your LLC defaults to Connecticut’s statutory rules, which may not reflect your actual intentions.
A thorough operating agreement should address:
- Ownership percentages and capital contributions
- Profit and loss distribution among members
- Management structure (member-managed vs. manager-managed)
- Voting rights and decision-making procedures
- Rules for adding or removing members
- Dissolution and buyout procedures
Even single-member LLCs benefit from having an operating agreement. Banks often ask for one when you open a business account, and it strengthens the legal separation between you and your LLC.
It is not required by Connecticut law, but it is strongly recommended. An operating agreement clarifies ownership terms, protects your limited liability status, and prevents disputes between members. Most banks and investors will also expect to see one.
6Open a Business Bank Account
A dedicated business bank account is essential for maintaining the legal separation between your personal finances and your LLC. Without it, a court could “pierce the corporate veil” and hold you personally liable for business debts.
To open your account, most banks require:
- Your filed certificate of organization (or a stamped copy)
- Your EIN confirmation letter from the IRS
- Your operating agreement
- A government-issued photo ID
How Much Does a Connecticut LLC Cost
Here is a full breakdown of the costs you can expect when forming and maintaining a Connecticut LLC.
| Item | Cost | Frequency | Notes |
|---|---|---|---|
| Certificate of Organization (online) | $120 | One-time | Filed with the Secretary of the State |
| Certificate of Organization (mail) | $120 | One-time | Same fee, slower processing (3-4 weeks) |
| Expedited Processing | $170 total | One-time | $120 filing + $50 expedite; 24-hour turnaround |
| Name Reservation | $60 | One-time | Optional; holds your name for 120 days |
| Registered Agent Service | $50 – $300 | Annual | Free if you serve as your own agent |
| EIN | $0 | One-time | Free from the IRS |
| Operating Agreement | $0 – $200 | One-time | Free if DIY; attorney-drafted costs more |
| Annual Report | $80 | Annual | Due by March 31 each year |
| Certificate of Good Standing | $50 | As needed | Sometimes required for loans or out-of-state registration |
Certificate of Organization (online)
$120 · One-timeFiled with the Secretary of the State
Certificate of Organization (mail)
$120 · One-timeSame fee, slower processing (3-4 weeks)
Expedited Processing
$170 total · One-time$120 filing + $50 expedite; 24-hour turnaround
Name Reservation
$60 · One-timeOptional; holds your name for 120 days
Registered Agent Service
$50 – $300 · AnnualFree if you serve as your own agent
EIN
$0 · One-timeFree from the IRS
Operating Agreement
$0 – $200 · One-timeFree if DIY; attorney-drafted costs more
Annual Report
$80 · AnnualDue by March 31 each year
Certificate of Good Standing
$50 · As neededSometimes required for loans or out-of-state registration
How Does Connecticut Compare?
Connecticut Filing Fee
$120
National Average
$127
Connecticut’s $120 filing fee comes in just under the national average. Combined with no publication requirement and no business entity tax, it is a cost-effective state for LLC formation.
Connecticut LLC Taxes
State Income Tax
Connecticut has a state income tax. How it affects your LLC depends on your tax classification.
By default, single-member LLCs are treated as disregarded entities (taxed as sole proprietorships), and multi-member LLCs are taxed as partnerships. In both cases, profits pass through to the members’ personal tax returns, where they are subject to Connecticut’s individual income tax rates ranging from 3% to 6.99%.
You can elect to have your LLC taxed as an S-corp or C-corp by filing the appropriate forms with the IRS. This does not change your LLC’s legal structure, only its tax treatment.
Business Entity Tax (Repealed)
Connecticut previously imposed a $250 biennial Business Entity Tax on all LLCs. That tax has been repealed. Your LLC no longer owes this fee.
Sales Tax
If your LLC sells taxable goods or certain services, you must collect and remit Connecticut sales tax at a rate of 6.35%. You will need to register for a Sales and Use Tax Permit through the Connecticut Department of Revenue Services before you begin collecting.
Self-Employment Tax
LLC members who actively participate in the business pay federal self-employment tax (15.3%) on their share of profits. This covers Social Security and Medicare. If self-employment taxes become significant, consider consulting a tax professional about an S-corp election, which can reduce this obligation.
By default, a Connecticut LLC is a pass-through entity. Single-member LLCs are taxed as sole proprietorships and multi-member LLCs are taxed as partnerships. All profits pass through to each member’s personal tax return and are subject to Connecticut income tax (3% to 6.99%) and federal self-employment tax. You can elect S-corp or C-corp taxation with the IRS if it benefits your situation.
After Forming Your Connecticut LLC
Annual Report
Every Connecticut LLC must file an Annual Report with the Secretary of the State. The report is due by March 31 each year, and the filing fee is $80.
You can file your Annual Report through the Secretary of the State’s online portal. There is no late fee for missing the deadline, but your LLC will fall out of good standing. If you fail to file for more than one year, the state may administratively dissolve your LLC.
BOI Report
As of March 2025, FinCEN revised its Beneficial Ownership Information (BOI) reporting rule. Domestic LLCs are now exempt from BOI reporting requirements. Only companies formed outside the United States are required to file. You do not need to take any action on this.
Business Licenses and Permits
Connecticut does not require a general state business license. However, depending on your industry and location, you may need specific licenses or permits at the state, county, or municipal level. Examples include food service permits, contractor licenses, and professional certifications. Check with your local town clerk and the Connecticut Department of Consumer Protection for industry-specific requirements.
Federal Obligations
Regardless of your state obligations, your LLC must comply with federal requirements. File the appropriate federal income tax return based on your tax classification, pay estimated quarterly taxes if applicable, and maintain accurate financial records.
Yes. Every Connecticut LLC must file an Annual Report by March 31 each year with an $80 filing fee. Failure to file does not trigger a late fee, but your LLC will lose its good standing status and may eventually be dissolved by the state.
Dissolving a Connecticut LLC
If you decide to close your LLC, you need to formally dissolve it with the state. Simply stopping business operations is not enough. Without a formal dissolution, you will continue to owe the $80 Annual Report fee each year.
To dissolve your Connecticut LLC, file Articles of Dissolution with the Secretary of the State. There is no filing fee for dissolution, which makes Connecticut one of the more affordable states for winding down a business.
Before filing, make sure you have settled all debts and obligations, distributed remaining assets to members, and filed all outstanding Annual Reports and tax returns.
Reinstatement
If your LLC has been administratively dissolved for failing to file annual reports, you can apply for reinstatement with the Secretary of the State. The reinstatement fee is $120, and you will also need to file all delinquent Annual Reports along with their associated fees.
A Connecticut LLC does not have an expiration date. It exists indefinitely as long as you file your Annual Report by March 31 each year and maintain a registered agent. If you stop filing, the state may administratively dissolve your LLC after more than one year of noncompliance.
Frequently Asked Questions
The minimum cost to form a Connecticut LLC is $120 for the certificate of organization. If you add a professional registered agent ($50 to $300 per year) and optional name reservation ($60), your first-year costs typically range from $120 to $480. The ongoing Annual Report costs $80 per year.
Online filings are processed in 2 to 3 business days. If you pay the additional $50 expedited fee, your filing is processed within 24 hours. Mail filings take 3 to 4 weeks.
Yes. Connecticut allows single-member LLCs. You can be the sole owner, and your LLC will be taxed as a disregarded entity (sole proprietorship) by default unless you elect a different classification with the IRS.
Connecticut is a solid choice, especially if you live or do business in the state. The $120 filing fee is slightly below the national average, there is no publication requirement, no business entity tax, and the state offers series LLC formation. The primary ongoing cost is an $80 Annual Report filed by March 31 each year.
