1. Connecticut LLC Overview

If you operate a business in Connecticut, forming a local LLC is required. The state has made it easier and cheaper to maintain an LLC by eliminating the old Business Entity Tax.

  • Reasonable formation fee — $120 to file the Certificate of Organization
  • Low annual fee — Just $80 per year for the annual report
  • No franchise tax — Standard LLCs don't pay a state franchise tax or the repealed BET

2. Connecticut LLC Requirements

  • Name must contain "Limited Liability Company," "L.L.C.," or "LLC"
  • Appoint a registered agent with a Connecticut physical address
  • File a Certificate of Organization with the Secretary of the State ($120)
  • File an Annual Report by March 31 each year ($80)

3. Connecticut LLC Costs and Fees (2026)

Cost Item Amount Notes
Certificate of Organization$120One-time state filing fee
Annual Report$80/yearDue March 31
Registered Agent$50–$150/yearRequired CT physical address
EINFreeApply at IRS.gov
Operating Agreement$0–$1,000Recommended, not legally required

4. How to Start a Connecticut LLC (Step by Step)

  1. 1 Choose your LLC name (must include "Limited Liability Company," "L.L.C.," or "LLC")
  2. 2 Appoint a registered agent with a Connecticut physical address
  3. 3 File a Certificate of Organization with the CT Secretary of the State ($120)
  4. 4 Obtain an EIN from the IRS (free at IRS.gov)
  5. 5 Draft an Operating Agreement (not filed, but legally binding)
  6. 6 Register with the CT Department of Revenue Services
  7. 7 File the Annual Report by March 31 each year ($80)
  8. 8 Open a business bank account
Business Entity Tax Repealed

If you read older articles, you might see a warning about a $250 biennial Business Entity Tax in Connecticut. Good news: this tax was repealed. Your only ongoing state fee is the $80 Annual Report.

5. Connecticut Annual Report

Connecticut LLCs must file an Annual Report to maintain their active status with the Secretary of the State.

  • Due Date: March 31 of each year, beginning the calendar year following formation.
  • Fee: $80.
  • Filing: Must be filed online via the state's CONCORD business portal.

6. Connecticut LLC Taxes (2026)

  • State income tax — 3% to 6.99% graduated rate on pass-through profits
  • Pass-Through Entity Tax (PE Tax) — Connecticut has an optional PE tax that allows LLCs to pay state income tax at the entity level, which can help members bypass the federal SALT deduction cap.
  • Federal income tax — Pass-through to personal return
  • Self-employment tax — 15.3% on net earnings
  • Sales tax — 6.35% state rate (localities do not charge additional sales tax)

7. Best For / Not Best For

Best For

  • Entrepreneurs living and operating in Connecticut

Not Best For

  • Out-of-state owners without Connecticut nexus
  • Cost-sensitive founders looking for zero-fee states