Starting an LLC in Connecticut is straightforward once we separate formation from the taxes and permits that come later. The Certificate of Organization costs $120. Connecticut LLCs also file an $80 annual report online each year between January 1 and March 31.
One old cost you do not need to add is the Connecticut Business Entity Tax. That tax was ended for tax periods beginning after December 31, 2018. A new LLC can still have income-tax, sales-tax, payroll, local, or professional duties, but the old blanket Business Entity Tax should not appear in a current 2026 startup budget.
Connecticut LLC Quick Answer
The basic path is:
- Choose a Connecticut-compliant LLC name.
- Choose a Connecticut registered agent.
- File the Certificate of Organization and pay $120.
- Create an operating agreement.
- Get an EIN when needed.
- Open a separate business bank account.
- Register for Connecticut taxes and permits that apply.
- File the $80 annual report between January 1 and March 31.
- Keep the registered agent, addresses, and company records current.
The official Connecticut domestic LLC forms and fees page lists the current $120 Certificate of Organization fee, $80 annual report fee, name reservation, amendments, and other LLC filings.
Step 1: Choose a Connecticut LLC Name
Your LLC name must meet Connecticut naming rules and be distinguishable from existing entities on the state record.
It also needs an accepted LLC designation.
I would start with several possible names rather than one.
Search the state records first. Then search the web, domain names, and social accounts.
If the brand will matter outside Connecticut, check possible trademark conflicts before spending money on signs, labels, packaging, or advertising.
A state-approved entity name does not automatically give you nationwide trademark rights.
Name Reservation Is Optional
Connecticut offers a name reservation filing if you want to hold a name before you are ready to form the company.
The current reservation fee is $60.
If you are ready to file the Certificate of Organization now, a separate reservation may not add much value.
Do not add fees just because a generic checklist says every LLC should reserve a name first.
Step 2: Choose a Registered Agent
Every Connecticut LLC needs a registered agent.
This is the person or authorized business that receives service of process and official legal papers for the LLC.
You can serve as your own agent if you are a Connecticut resident.
Another Connecticut resident who is at least 18 can also serve.
A business entity registered with the state and having a Connecticut address may also qualify.
The Agent Needs Real Connecticut Address Information
The current Certificate of Organization form asks an individual registered agent for a Connecticut residence address.
A P.O. box is not accepted for the required physical address.
The form can also ask for a business address and a Connecticut mailing address.
A mailing address can use a P.O. box.
This difference matters when you are trying to protect privacy while still meeting the legal-address rule.
The Registered Agent Must Accept the Appointment
Connecticut requires the agent to accept the role.
Do not list somebody’s name and assume that is enough.
The agent needs to understand that lawsuits and important state notices may be delivered to that address.
A reliable agent is part of maintaining the LLC, not just a box on the formation form.
Step 3: File the Certificate of Organization
The Certificate of Organization creates the domestic Connecticut LLC.
The current filing fee is $120.
The filing asks for the LLC name, principal office, mailing address, registered agent, and other required information.
The principal office must use a full address. A P.O. box alone is not accepted for that field.
Review everything before filing because the entity record becomes part of the public business database.
Connecticut Costs More to Form Than Colorado
The $120 startup filing is more than several nearby comparisons in this TUARS series.
Our Colorado LLC guide covers a $50 formation fee and a $25 annual Periodic Report.
Connecticut costs more at formation and has an $80 annual report.
That does not mean a Connecticut business should form in Colorado.
If the company actually operates in Connecticut, forming elsewhere can create a second registration and another compliance calendar.
Step 4: Create an Operating Agreement
The operating agreement is the internal rulebook for the company.
You do not file it with the Certificate of Organization.
Keep it with the LLC records. If you prefer a paper backup for key company records, a business document organizer can keep formation papers, tax notices, and annual-report copies together.
A one-owner LLC can use it to document ownership, management authority, capital, distributions, and dissolution.
A multi-member LLC should go further.
Useful topics include:
- ownership percentages;
- voting rights;
- management authority;
- capital contributions;
- profit and loss allocations;
- distributions;
- adding members;
- buyouts;
- death or disability;
- disputes;
- dissolution.
The best time to write these rules is before anyone needs them.
Step 5: Get an EIN When Needed
An Employer Identification Number is the federal tax number issued by the IRS.
Many LLCs need one for employees, payroll, multi-member tax filings, banking, or tax elections.
The IRS does not charge an EIN application fee.
Private services may charge for help, but that fee is not a government requirement.
Your LLC and Federal Tax Classification Are Different
A Connecticut LLC is a state-law entity.
Federal tax treatment is a separate issue.
A one-member LLC is commonly disregarded for federal income tax unless another classification is elected.
A multi-member LLC is commonly taxed as a partnership unless it elects corporate treatment.
An eligible LLC may also elect S corporation treatment.
That choice should come from real tax math, not a promise that every LLC saves money by becoming an S corporation.
Step 6: Open a Business Bank Account
Once the LLC exists, separate business money from personal money.
Deposit company income into the business account.
Pay company expenses from it.
Record owner contributions, reimbursements, and distributions clearly.
Do not use the LLC account as a second personal checking account.
Clean banking helps with bookkeeping, taxes, financing, and proving that the company is operated separately. A new business also needs a dependable online home, and this small-business WordPress guide explains why a website can become part of the company’s long-term foundation.
Step 7: Register With Connecticut DRS When Needed
Forming the LLC does not automatically create every Connecticut tax account you may need.
Businesses use myconneCT to register with the Department of Revenue Services for applicable tax types.
The information needed can include the EIN, legal name, address, bank information for fees, and owner or officer information.
Register for the taxes that match what the company actually does.
A Sales and Use Tax Permit Can Cost $100
If the LLC sells, rents, or leases goods, sells taxable services, or operates certain lodging businesses, it generally needs a Connecticut Sales and Use Tax Permit before making taxable sales.
The current registration fee is $100.
If the business has more than one location, a permit may be required for each location.
Do not confuse this $100 permit with the LLC formation fee or annual report.
They are separate obligations for different purposes.
The Old Connecticut Business Entity Tax Is Gone
This is a useful correction to older startup guides.
Connecticut’s Business Entity Tax no longer exists for tax periods beginning after December 31, 2018.
Old articles may still mention a recurring BET payment for LLCs.
That advice is stale.
A Connecticut LLC can still owe other state taxes based on its activity and tax classification, but the old Business Entity Tax should not be treated as a current 2026 LLC cost.
Connecticut Is Not California’s Tax Model
Our California LLC guide explains a very different state cost structure.
Most California LLCs face an $800 annual tax, and larger LLCs can owe another income-based fee.
Connecticut does not use that same blanket $800 model.
Again, this is why state-by-state articles matter.
The word “LLC” is national. The compliance calendar is not.
Step 8: File the $80 Annual Report
Connecticut LLCs file an annual report every year.
The current fee is $80.
For domestic LLCs, the annual report is filed online.
The filing period runs from January 1 through March 31.
That makes the deadline easy to remember if you put it on the calendar before tax season gets busy. A simple business planner can also help you track annual reports, tax dates, permit renewals, and other repeating deadlines.
The Annual Report Is Not a Financial Statement
Connecticut’s annual report is mainly an information update.
It can include business addresses, registered-agent information, key people, NAICS information, and other basic facts.
It is not the same thing as an income-tax return.
Filing one does not replace the other.
Missing the Annual Report Can Hurt Legal Existence
If the report becomes overdue, the business can lose the ability to obtain a certificate of legal existence.
That can cause problems when a bank, lender, customer, landlord, buyer, or government agency wants proof that the LLC is active and compliant.
If reports remain unfiled, the Secretary of the State may eventually dissolve the business.
An $80 annual filing is much easier than restoring a company after a compliance problem.
Keep the Registered Agent Current
The registered agent can change after formation.
If the person moves, resigns, or is replaced, update the state record.
Connecticut currently charges separate fees for changing an agent or the agent’s address.
Do not leave an invalid legal-contact address on the record until the next annual report.
Local and Professional Licenses Can Still Apply
The Secretary of the State creates the LLC.
It does not give you every permit needed to operate.
A contractor, restaurant, salon, healthcare provider, retailer, landlord, and home-based business can face different rules.
Check the municipality and the state agency that regulates the work.
Our Arizona LLC guide is another good comparison because Arizona has no annual LLC report but does have its own publication and Transaction Privilege Tax system.
What If the Connecticut LLC Operates Elsewhere?
A Connecticut LLC that regularly conducts business in another state may need to register there as a foreign LLC.
That can mean another filing fee, another registered agent, and another reporting calendar.
Forming in Connecticut does not erase the rules of the state where the company actually works.
Insurance Still Matters
An LLC can help separate business obligations from personal assets.
It does not replace insurance.
A contractor, retailer, consultant, landlord, restaurant, or professional can face very different risks.
Use the legal entity and the right insurance together.
Common Connecticut LLC Mistakes
- Forgetting that the Certificate of Organization costs $120.
- Using a P.O. box where a physical registered-agent or principal-office address is required.
- Forgetting the $80 annual report between January 1 and March 31.
- Following old advice about the repealed Connecticut Business Entity Tax.
- Skipping the $100 Sales and Use Tax Permit when taxable activity requires it.
- Mixing personal and business money.
- Ignoring local or professional licensing.
- Forming in Connecticut while actually operating elsewhere without checking foreign registration.
March 31 Is the Date Worth Remembering
Connecticut’s LLC process is not complicated when we build the calendar at the same time we form the company.
Pay $120 for the Certificate of Organization. Choose a valid registered agent. Create the operating agreement. Set up the EIN, bank account, tax registrations, and licenses.
Then remember the repeating Secretary of State filing.
The $80 annual report is due during the January 1 through March 31 filing period every year.
That is the habit that keeps a simple formation from becoming an avoidable good-standing problem.
This article provides general information, not legal or tax advice. Fees, tax laws, licensing rules, and filing procedures can change. Confirm current Connecticut requirements before filing and use qualified professional help when your ownership, tax, licensing, or multi-state situation needs it.