How to Start an LLC in Connecticut – Formation Guide
How to Start an LLC in Connecticut
Complete Connecticut LLC Formation Guide – The Constitution State
Connecticut LLC Overview
🎯 Quick Facts: Connecticut LLC
- Formation Fee: $120
- Annual Report Fee: $80/year
- Processing Time: 5-10 business days
- Online Filing: Available via CONCORD system
- Statute: Connecticut Limited Liability Company Act (Conn. Gen. Stat. § 34-100 et seq.)
- Series LLC: ✅ Allowed
- Professional LLC: ✅ Allowed for licensed professionals
What is a Connecticut LLC?
A Connecticut Limited Liability Company (LLC) is a flexible business structure that combines:
- Limited liability protection: Owners (members) aren’t personally liable for business debts
- Pass-through taxation: LLC profits/losses pass through to members’ personal tax returns (no double taxation)
- Flexible management: Can be member-managed or manager-managed
- Minimal formalities: No required annual meetings or minutes (unlike corporations)
Connecticut LLC vs Other States
| Factor | Connecticut | Delaware | Wyoming |
|---|---|---|---|
| Formation Fee | $120 | $90 | $100 |
| Annual Report | $80/year | $300/year | $60/year |
| Year 1 Total | $200 | $390 | $160 |
| Ongoing Annual Cost | $80 | $300 | $60 |
| Series LLC | ✅ Yes | ✅ Yes | ❌ No |
| Publication Requirement | ❌ None | ❌ None | ❌ None |
Why Form a Connecticut LLC?
✅ Advantages
- Reasonable costs: $200 Year 1, $80/year ongoing (mid-range nationally)
- Series LLC available: Create separate liability protection for multiple properties/businesses under one umbrella
- Professional LLC option: Licensed professionals (doctors, lawyers, CPAs) can form LLCs
- No publication requirement: No need to publish formation notice in newspapers (unlike NY)
- Strong legal framework: Modern LLC statute with well-established case law
- Charging order protection: Creditor remedies limited to charging orders in single-member LLCs
❌ Disadvantages
- Higher than some states: WY ($60/year) and NM ($0/year) have lower annual fees
- Business Entity Tax: $250 annual business entity tax (in addition to $80 report fee)
- Not as investor-friendly as Delaware: DE preferred for VC-backed companies
💡 The “Home State Rule”
If you’ll do business primarily in Connecticut (have an office, employees, or significant sales here), you’ll owe CT taxes anyway, even if you form in Delaware or Wyoming.
In that case, forming in CT saves you:
- Foreign LLC registration fee ($120)
- Registered agent fees in two states
- Double annual reports
When to Choose Connecticut
✅ Form in Connecticut If:
- Your business operates primarily in Connecticut
- You’re a Connecticut resident starting a local business
- You want to avoid foreign qualification complexity
- You’re forming a professional LLC (doctor, lawyer, CPA, etc.)
- You need series LLC functionality for multiple properties/ventures
🤔 Consider Delaware If:
- Raising VC funding (investors may prefer Delaware)
- Complex ownership structure with preferred equity
- You value Delaware Court of Chancery expertise
🤔 Consider Wyoming If:
- Holding company with no CT business activity ($60/year vs $330/year in CT)
- Maximum privacy preference (WY has stronger anonymity)
- Minimizing costs is top priority
Connecticut LLC Types
| LLC Type | Description | Best For |
|---|---|---|
| Single-Member LLC | One owner; disregarded entity for tax purposes (taxed as sole proprietorship) | Solo entrepreneurs, freelancers, single-owner businesses |
| Multi-Member LLC | 2+ owners; taxed as partnership by default | Co-founded businesses, family businesses, joint ventures |
| Professional LLC (PLLC) | For licensed professionals (attorneys, doctors, CPAs, etc.) | Law firms, medical practices, accounting firms, architecture firms |
| Series LLC | Parent LLC with multiple protected series (separate liability compartments) | Real estate investors, franchisors, businesses with multiple product lines |
| Foreign LLC | LLC formed in another state but registered to do business in CT | Out-of-state LLCs expanding into Connecticut |
Official Connecticut Resources
How to Form a Connecticut LLC – Step-by-Step
Follow these steps to form your Connecticut LLC properly and efficiently:
1Choose a Connecticut LLC Name
Your LLC name must comply with Connecticut naming requirements:
Required Elements
- Must contain “Limited Liability Company”, “LLC”, or “L.L.C.”
- Acceptable variations: “Ltd. Liability Company”, “Ltd. Liability Co.”
- Cannot contain words restricted by law (e.g., “bank”, “insurance”, “trust”) without approval
- Must be distinguishable from existing Connecticut business names
Name Availability Check
- Search the Connecticut Business Entity Database
- Check for exact matches and similar names
- If available, you can reserve the name for 120 days ($60 fee) using Form LLC-1A
💡 Pro Tip: Domain Name
Before finalizing your LLC name, check domain availability at a registrar like Namecheap or GoDaddy. Having a matching .com domain is valuable for your online presence.
2Designate a Registered Agent
Connecticut requires every LLC to have a registered agent with a physical CT address to receive legal documents.
Registered Agent Requirements
- Must have a physical street address in Connecticut (no P.O. boxes)
- Must be available during normal business hours
- Can be:
- You (the LLC owner)
- Another individual CT resident
- A Connecticut business entity
- A professional registered agent service ($100-$300/year)
⚠️ Why Use a Professional Registered Agent?
- Privacy: Keeps your home address off public records
- Reliability: Never miss legal documents (lawsuits, subpoenas, tax notices)
- Professionalism: Avoid embarrassing service of process at your office
- Convenience: Agent scans and emails you documents immediately
3File Certificate of Organization
File Certificate of Organization (Form LLC-1) with the Connecticut Secretary of State.
Required Information
- LLC name
- Business purpose (can be “any lawful purpose”)
- Registered agent name and CT address
- Management structure (member-managed or manager-managed)
- Organizer name and address (person filing, doesn’t have to be a member)
- Effective date (immediate or future date)
Filing Methods
- Online via CONCORD (recommended):
- Go to CONCORD system
- Create account and complete Form LLC-1
- Pay $120 filing fee by credit card
- Processing time: 5-10 business days
- By mail:
- Download and complete Form LLC-1
- Mail to: Connecticut Secretary of State, Commercial Recording Division, P.O. Box 150470, Hartford, CT 06115-0470
- Include $120 check or money order
- Processing time: 10-15 business days
Expedited Processing
- Same-day processing: Additional $50 fee (submit by 2 PM)
- 2-hour processing: Additional $100 fee
4Create an Operating Agreement
While Connecticut does NOT legally require an operating agreement, it’s essential for every LLC.
Why You Need an Operating Agreement
- Clarifies ownership: Defines each member’s ownership percentage and capital contributions
- Establishes governance: How decisions are made, voting rights, management structure
- Protects limited liability: Helps maintain corporate veil by showing LLC is separate from owners
- Prevents disputes: Clear rules for profit distribution, member exits, buyouts
- Required by banks: Most banks require an operating agreement to open a business account
See the Operating Agreement tab for detailed guidance on what to include.
5Obtain an EIN (Employer Identification Number)
Get a federal EIN (tax ID number) from the IRS. It’s free and takes 5-10 minutes online.
When You Need an EIN
- Multi-member LLC (required)
- Single-member LLC with employees (required)
- Single-member LLC electing S-corp tax treatment (required)
- Single-member LLC wanting to open a business bank account (strongly recommended)
How to Get an EIN
- Go to IRS EIN Online Application
- Complete the application (have your Certificate of Organization handy)
- Receive your EIN immediately upon completion
- Download and save your EIN confirmation letter (IRS Form CP 575)
6Register with Connecticut Department of Revenue Services (DRS)
Register your LLC with Connecticut DRS for state tax purposes.
What You’ll Need to Register For
- Business Entity Tax: $250/year minimum (all Connecticut LLCs must register)
- Sales and Use Tax: If selling tangible goods in CT
- Withholding Tax: If you have employees
How to Register
- Create account at Connecticut Taxpayer Service Center (TSC)
- Complete business registration
- Select applicable tax types
- Receive Connecticut Tax Registration Number
7Open a Business Bank Account
Keep business and personal finances separate by opening a dedicated business bank account.
Documents You’ll Need
- Certificate of Organization (stamped/filed copy from Secretary of State)
- EIN confirmation letter (CP 575)
- Operating Agreement
- Personal ID (driver’s license or passport)
- Initial deposit (varies by bank)
8Obtain Business Licenses & Permits
Depending on your business type and location, you may need:
- Professional licenses: If you’re a doctor, lawyer, CPA, contractor, etc.
- Local business license: Required by some Connecticut cities/towns
- Sales tax permit: If selling taxable goods (obtained through DRS registration)
- Health permits: For restaurants, food service, healthcare facilities
- Federal licenses: For certain industries (firearms, alcohol, transportation)
Post-Formation: Maintain Good Standing
After formation, remember to:
- File annual reports ($80) every year by anniversary of formation
- Pay Business Entity Tax ($250/year minimum)
- Maintain registered agent
- Keep operating agreement and LLC records updated
- Hold member/manager meetings and document major decisions
- File federal and state tax returns
Connecticut LLC Costs & Fees
Formation Costs
| Item | Cost | Notes |
|---|---|---|
| Certificate of Organization (Form LLC-1) | $120 | State filing fee (required) |
| Expedited Processing (same-day) | +$50 | Optional; must submit by 2 PM |
| Expedited Processing (2-hour) | +$100 | Optional |
| Name Reservation (Form LLC-1A) | $60 | Optional; reserves name for 120 days |
| Registered Agent Service | $100-300/year | Optional but recommended |
| Operating Agreement Drafting | $0-500+ | DIY free; attorney-drafted $500-2,000 |
| EIN from IRS | Free | Apply online at irs.gov |
Minimum DIY Formation Cost (Year 1):
$120
Typical Formation Cost with Attorney:
$500-1,500
Annual Costs & Ongoing Fees
| Requirement | Cost | Frequency |
|---|---|---|
| Annual Report | $80 | Every year (due on anniversary of formation) |
| Business Entity Tax (minimum) | $250 | Every year (due April 15) |
| Registered Agent Service | $100-300 | Annual (if using service) |
| Business Licenses/Permits | Varies | Varies by industry and location |
Minimum Annual Cost (Years 2+):
$330
Total Cost: Year 1
$450 ($120 formation + $80 report + $250 tax)
Connecticut Business Entity Tax Explained
⚠️ $250 Minimum Business Entity Tax
Connecticut imposes a Business Entity Tax on all LLCs and corporations. Even if your LLC has $0 revenue, you owe the $250 minimum.
The Business Entity Tax is calculated as the greater of:
- $250 minimum (applies to most small LLCs), OR
- 0.31% of gross income from CT sources (if gross income is $250,000+), capped at $1 million
Business Entity Tax Calculation Examples
| Connecticut Gross Income | Tax Owed |
|---|---|
| $0 – $80,000 | $250 (minimum) |
| $100,000 | $310 (0.31% of $100K) |
| $500,000 | $1,550 (0.31% of $500K) |
| $1,000,000 | $3,100 (0.31% of $1M) |
| $10,000,000+ | $31,000+ (0.31%, no cap) |
Due date: April 15 (same as federal tax deadline)
Form: Form OP-424 (Business Entity Tax Return)
Cost Comparison: CT vs Other States (10 Years)
| State | Formation | Annual Report | Business Tax | Year 1 Total | 10-Year Total |
|---|---|---|---|---|---|
| Connecticut | $120 | $80/year | $250/year | $450 | $3,390 |
| Delaware | $90 | $300/year | $0 | $390 | $2,790 |
| Wyoming | $100 | $60/year | $0 | $160 | $640 |
| New Mexico | $50 | $0 | $0 | $50 | $50 |
💡 Is Connecticut Worth the Cost?
Yes, if you’re doing business in Connecticut. The $330/year ongoing cost is higher than some states, but if you operate in CT:
- You’ll owe CT taxes anyway (even if formed elsewhere)
- You avoid foreign qualification fees ($120)
- You avoid complexity of maintaining LLC in two states
Consider out-of-state LLC only if:
- You have NO CT business activity (pure holding company)
- Minimizing costs is critical priority
- You want Wyoming/Delaware privacy or legal advantages
Connecticut LLC Operating Agreement
Comprehensive operating agreement guidance…
Connecticut Professional LLC (PLLC)
Licensed professionals forming LLCs in Connecticut…
Connecticut Series LLC
Series LLC structure and benefits…
Connecticut LLC Annual Compliance
Annual reports, tax filings, ongoing requirements…
Connecticut LLC Taxation
Pass-through taxation, Business Entity Tax, S-corp election…
Beneficial Ownership Information (BOI) Reporting
FinCEN BOI reporting requirements for Connecticut LLCs…
Connecticut LLC Formation Services
As a Connecticut-licensed attorney, I offer comprehensive LLC formation and ongoing legal support for Connecticut businesses.
⚖️ Real Attorney, Not a Paralegal
When you work with me, you get:
- Direct access to a Connecticut-licensed attorney (not a paralegal or document mill)
- Operating agreements drafted by me personally for your specific situation
- Tax structure analysis and S-corp election guidance
- Professional LLC compliance assistance
- Series LLC structuring and strategy
My Connecticut LLC Formation Packages
📄 DIY Formation Support – $399
- Step-by-step Connecticut LLC formation guide
- Name availability check
- Certificate of Organization template & review
- Operating Agreement template (single or multi-member)
- EIN application guidance
- Connecticut DRS registration checklist
Total
$399
⚡ Full-Service Formation – $899
- Everything in DIY package, plus:
- I file Certificate of Organization for you (includes $120 state fee)
- Registered agent service (1 year included, $149/year after)
- Custom Operating Agreement drafted by me personally
- EIN obtained on your behalf
- Connecticut DRS registration assistance
- Compliance calendar with annual report reminders
Total
$899
🏆 Premium Formation + Tax Planning – $1,699
- Everything in Full-Service package, plus:
- 1-hour tax strategy consultation
- Multi-member equity structure planning
- S-corp election analysis & Form 2553 filing (if beneficial)
- Multi-state nexus review
- Series LLC setup (if applicable)
- 6 months ongoing advisory support
Total
$1,699
📞 Ready to Get Started?
Reserve attorney time to plan your Connecticut LLC formation, operating agreement, and compliance roadmap.
Prefer email? I respond within one business day (Mon–Fri).
- Email: owner@terms.law