How to Start an LLC in Connecticut (Step-by-Step Guide)

Forming an LLC in Connecticut requires filing a Certificate of Organization with the Connecticut Secretary of the State and paying a $120 filing fee. The process takes about 3-5 business days when filed online.

Follow these steps to start your Connecticut LLC in 2026.

How to Start an LLC in Connecticut (6 Steps)

Step 1: Name Your Connecticut LLC

Your LLC name must be distinguishable from other business names registered in Connecticut. The name must include “Limited Liability Company,” “LLC,” or “L.L.C.” as a designator.

Search the Connecticut Secretary of the State’s business database to check availability. This free search tool shows all registered entities so you can verify your desired name isn’t already taken or confusingly similar to an existing business.

If you want to secure a name before filing, you can reserve it for 120 days by filing a Name Reservation application ($60 fee). This is optional but useful if you need time to prepare your formation documents. Note that Connecticut’s name reservation fee ($60) is higher than most states.

Connecticut naming rules:

• Must include an LLC designator (“Limited Liability Company,” “LLC,” or “L.L.C.”)
• Cannot be the same as or deceptively similar to an existing business entity registered in Connecticut
• Cannot include words suggesting it’s a bank, insurance company, or government entity without proper authorization
• Cannot contain any word or phrase prohibited by Connecticut law
• Cannot use restricted professional terms without appropriate licensing

Tips for choosing a strong LLC name: Check if a matching domain name and social media handles are available. Consider conducting a federal trademark search at the USPTO trademark database. If you plan to do business under a name different from your LLC name, you’ll need to file a Trade Name Certificate ($20) with your local town clerk.

Step 2: Choose a Registered Agent

Connecticut requires every LLC to designate a registered agent (called a “statutory agent” in Connecticut) with a physical street address in Connecticut. The registered agent receives legal documents, including lawsuits (service of process), state notices, and compliance correspondence on behalf of your LLC.

You have three options for your registered agent:

• Be your own registered agent: Free, but you must have a Connecticut physical address (not a PO box), be available during business hours, and your name and address become public record.
• Appoint a trusted individual: They must be a Connecticut resident with a physical address and available during normal business hours.
• Hire a professional registered agent service: Provides privacy, reliability, and compliance alerts. Costs $39-$299/year.

Our top recommendation is Northwest Registered Agent ($39/year), which also handles LLC formation for $39 + the $120 state fee. Northwest provides a Connecticut physical address, scans and forwards all documents digitally, and sends compliance reminders before your Annual Report is due.

Step 3: File Your Certificate of Organization

File your Certificate of Organization with the Connecticut Secretary of the State. You can file online through the Business.CT.gov portal or by mail.

Filing details:

• Filing fee: $120
• Online filing: Business.CT.gov portal (recommended for fastest processing)
• Processing time: 3-5 business days (online), 2-4 weeks (by mail)
• Payment: Credit card (online) or check payable to “Secretary of the State” (mail)

Information required on the Certificate of Organization:

• LLC name (with the LLC designator)
• Principal office address
• Registered agent (statutory agent) name and physical street address in Connecticut
• Name and address of each organizer
• Whether the LLC is member-managed or manager-managed
• Effective date (can be the filing date or a future date within 30 days)

Member-managed vs. manager-managed: In a member-managed LLC, all owners share in management decisions. Manager-managed is better if you have passive investors or want a designated person running daily operations. Most small Connecticut LLCs choose member-managed.

Step 4: Create an Operating Agreement

Connecticut doesn’t legally require an operating agreement, but having one is strongly recommended. An operating agreement establishes the rules for how your LLC operates, including ownership percentages, profit distribution, management responsibilities, and what happens when members join or leave.

Your operating agreement should address these essential topics:

• Member ownership percentages and capital contributions
• Voting rights and decision-making procedures
• How profits and losses are distributed among members
• Management structure and day-to-day authority
• Procedures for adding new members or handling departing members
• Buyout provisions and transfer restrictions
• Rules for meetings and record-keeping
• Dissolution procedures

Even single-member LLCs should create an operating agreement. It reinforces the legal separation between you and your business — which is critical for liability protection in Connecticut courts — and most banks require one to open a business bank account.

Step 5: Get an EIN

Apply for an Employer Identification Number (EIN) through the IRS website. An EIN is your LLC’s federal tax identification number. The application is free and takes about 15 minutes online.

You need an EIN to:

• Open a business bank account
• Hire employees and manage payroll
• File federal and state tax returns
• Apply for business credit cards and loans
• Comply with Connecticut’s pass-through entity tax reporting

We recommend getting an EIN even if you’re a single-member LLC without employees. It protects your Social Security number and makes your business look more professional.

Step 6: File Your Annual Report and Register for Taxes

After forming your Connecticut LLC, you need to handle two key ongoing requirements:

Annual Report: Connecticut LLCs must file an Annual Report with the Secretary of the State each year. This updates the state on your LLC’s current information.

• Filing fee: $80 per year
• Due date: Between January 1 and March 31 each year
• Filing method: Online through the Business.CT.gov portal
• First filing: Due the calendar year after your LLC was formed

Tax Registration: Register with the Connecticut Department of Revenue Services (DRS) for any applicable taxes. If your LLC sells taxable goods or services, you’ll need a Sales and Use Tax Permit. If you have employees, register for withholding tax. You can register online through the CT DRS website.

Connecticut LLC Costs

Total first-year cost: $200-$499 (depending on whether you use a registered agent service). Connecticut’s costs are moderate — not the cheapest or most expensive state for LLC formation. See our complete guide to LLC costs by state for a full comparison across all 50 states.

Want to save money? Using an LLC formation service like Northwest ($39 + state fee) is significantly cheaper than hiring an attorney ($500-$2,000).

Connecticut LLC Taxes

Connecticut has a progressive income tax with rates from 2% to 6.99%. There’s also a mandatory pass-through entity (PTE) tax that uniquely affects how Connecticut LLCs pay taxes. Here’s the complete breakdown:

• State income tax: 2% to 6.99% (seven brackets, progressive structure). The top rate of 6.99% applies to taxable income over $500,000 for single filers.
• Pass-through entity tax (PTE): Connecticut imposes a mandatory 6.99% tax on the income of pass-through entities, including multi-member LLCs. Members receive a credit of 87.5% of this tax against their personal income tax liability. This mechanism was designed to help LLC members work around the federal $10,000 SALT deduction cap.
• Franchise tax: None for LLCs (only applies to corporations).
• Sales tax: 6.35% statewide (no local sales taxes, making it simpler than many other states).
• Self-employment tax: 15.3% on the first $168,600 of net self-employment income (2026 federal rate), plus 2.9% Medicare tax on amounts above that threshold.
• Federal taxes: Standard pass-through taxation — the LLC itself doesn’t pay federal income tax. Profits pass through to members’ personal returns.

Understanding the PTE tax: Connecticut’s mandatory pass-through entity tax can be confusing. Here’s how it works: The LLC pays 6.99% tax on its income at the entity level. Then each member receives a credit for 87.5% of their share of that tax on their personal Connecticut return. The net effect is that the members still pay roughly the same total tax, but the mechanism allows a larger portion to be deducted at the federal level (bypassing the $10,000 SALT cap). This can be a meaningful benefit for higher-income LLC members.

Annual Requirements for Connecticut LLCs

To keep your Connecticut LLC in good standing, you must meet these ongoing requirements:

• Annual Report: $80, due between January 1 and March 31 each year. Filed online with the Connecticut Secretary of the State through the Business.CT.gov portal.
• Pass-Through Entity Tax: Due annually. Multi-member LLCs file Form CT-1065/CT-1120SI with the Department of Revenue Services.
• State tax returns: LLC members report their share of income on their personal Connecticut income tax returns (Form CT-1040).
• Maintain a registered agent: Must have a registered agent (statutory agent) with a Connecticut physical address at all times.
• Sales tax filing: If applicable, file periodic sales tax returns with the DRS.

Pros and Cons of a Connecticut LLC

Advantages:

• PTE tax mechanism helps bypass the federal SALT deduction cap
• No franchise tax for LLCs
• Simple sales tax (single statewide rate of 6.35%, no local sales taxes)
• Fast online processing (3-5 business days)
• Strong consumer market with high median household income

Disadvantages:

• Higher-than-average filing fee ($120) and annual report fee ($80)
• High state income tax rates (up to 6.99%)
• Mandatory PTE tax adds complexity to tax filings
• Expensive name reservation ($60)
• Higher overall cost of doing business compared to many states

Connecticut LLC vs. Other States

If you’re evaluating whether Connecticut is the right state to form your LLC, here’s how it compares to nearby alternatives:

Connecticut vs. New York: Connecticut’s $120 filing fee is much lower than New York’s $200 filing fee and $50 biennial statement requirement. Connecticut also has simpler compliance — one annual report vs. New York’s publication requirement, which can cost $300-$1,500 in New York City. However, Connecticut’s PTE tax adds complexity that New York doesn’t have.

Connecticut vs. Delaware: If you’re considering forming in Delaware for its business-friendly courts, weigh the $300 annual franchise tax. Connecticut doesn’t have a franchise tax for LLCs, making it cheaper for ongoing maintenance. Unless you need Delaware’s Court of Chancery, Connecticut is likely the more practical choice for businesses operating in New England.

Connecticut vs. Massachusetts: Connecticut’s $120 filing fee is much lower than Massachusetts’s $500 fee. Connecticut also has a simpler annual compliance structure. Both states have relatively high income tax rates, but Connecticut’s PTE tax mechanism may provide SALT cap benefits that Massachusetts doesn’t offer.

For most small businesses that operate in Connecticut, forming your LLC in Connecticut is the most straightforward choice. You avoid the hassle and cost of registering as a foreign LLC.

Frequently Asked Questions

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

Online filing through the Business.CT.gov portal typically takes 3-5 business days for processing. Filing by mail can take 2-4 weeks. Online filing is strongly recommended for faster processing and immediate confirmation of your submission.

What is Connecticut’s pass-through entity tax?

Connecticut imposes a mandatory 6.99% tax on the income of pass-through entities, including multi-member LLCs. Members receive a credit of 87.5% of this tax on their personal income tax returns. The practical effect is that a portion of your state tax is shifted from the individual level to the entity level, which allows it to bypass the federal $10,000 SALT deduction cap. This can result in meaningful federal tax savings for higher-income LLC members.

Can I form a Connecticut LLC if I live in another state?

Yes. You can form a Connecticut LLC regardless of where you live. You’ll need a registered agent with a physical address in Connecticut. However, if you primarily do business in another state, you’ll need to register as a foreign LLC there too, which means paying fees in both states. For most small businesses, forming an LLC in the state where you operate is more practical. See our how to start an LLC guide for more on choosing the right state.

Does Connecticut require an operating agreement?

No, Connecticut doesn’t legally require an operating agreement. However, we strongly recommend creating one for every LLC. It defines member roles and responsibilities, protects your personal liability, and most banks require one to open a business account. Without an operating agreement, your LLC is governed by Connecticut’s default LLC statute provisions, which may not align with your preferences.

When is the Connecticut LLC Annual Report due?

The Annual Report must be filed between January 1 and March 31 each year with the Secretary of the State. The filing fee is $80. You do not need to file a report in the year your LLC was formed — your first report is due the following calendar year. File online through the Business.CT.gov portal to ensure timely processing. Failure to file can result in administrative dissolution of your LLC.

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