Cost To Form An LCC In Connecticut 2024: Detailed Review & Guides
Reviewed by Kristina Knight, Journalist , BA
The article is checked by our editorial team, Which includes entrepreneurs who are painfully aware of how overwhelming and challenging it is to start a business for the first time.
Entrepreneurs looking to set up businesses in Connecticut have a lot of options when it comes to their business structure. Among these is the (LLC), which stands for limited liability company.
Many business owners prefer an LLC because it combines the benefits of a corporation, such as limited liability and tax advantages, with the flexibility and control of a partnership or sole proprietorship.
If you’re planning on forming an LLC in Connecticut, it’s important to understand the legal requirements and associated costs. This article will discuss everything you need to know, including how much setting up an LLC costs and what steps are necessary.
What Is an LLC in Connecticut?
In Connecticut, an LLC is a type of business entity that grants limited liability protection to its owners. This means that the member’s personal assets are protected from creditors and lawsuits against the company. In addition, LLCs have pass-through taxation which allows profits to be taxed on the individual level rather than at the corporate level.
A Connecticut LLC formation requires filing paperwork with the Secretary of State, paying fees and taxes to both state and federal agencies, and publishing notice of formation in a local newspaper (if required). An attorney can help you navigate this process efficiently and ensure your application is complete.
Read More: Best LLC Formation Services in Connecticut 2024
Connecticut LLC Cost
The total costs of forming an LLC in Connecticut depend on a few factors, including the type of LLC you form and any professional services or state filing fees you may need to complete the process. Here is an overview of the fees to expect.
Connecticut LLC Filing Fees
All Connecticut LLCs need to file a Certificate of Organization with the Connecticut Secretary of State to be official. The application document contains information like business address, info of the registered agent (if applicable), business services division, and info on business members.
The filing fee is $120, and the articles of organization can be filed online or through postal mail. If the application is successful, you will receive your Connecticut LLC certificate.
Connecticut LLC Annual Report Fees
In addition to the filing fee, Connecticut LLCs are required to file an annual report with the Secretary of State each year. The Connecticut annual report filing fee is $80, and the due date is between January 1 to March 3. Businesses typically file annual reports online.
Registered Agent Fee
While you can be your own registered agent and form an LLC by yourself, it is almost always recommended to hire registered agent services to handle the paperwork and other legal requirements. The cost of a Connecticut registered agent varies depending on the provider you choose but typically ranges from $100 to $300 per year.
The registered agent should be available during normal business hours and must have a registered physical address in Connecticut.
Cost to Form a Foreign LLC in Connecticut
In Connecticut, you can register as a domestic LLC or foreign LLC. The filing fee of $120 is the same for any Connecticut foreign LLC. The only difference is that foreign LLCs must file a Foreign Registration Statement instead.
Business Permits and Licenses
Depending on your business activities, you may need to obtain additional business licenses and permits. The cost of these can vary widely depending on the type and scope of your business. For example, if you’re opening a restaurant in Connecticut, you’ll likely need to pay for an alcohol permit or food service license.
Taxes
Part of Connecticut LLC fees is the taxes needed to file with the state of Connecticut. The exact amount will vary depending on your business type and size. However, remember that LLCs have several tax advantages over other business entities. Here are the taxes to take note of.
Withholding Tax
Any Connecticut LLC that employs one or more members is required to withhold income tax. You will need to register with the Connecticut Department of Revenue Services for withholding tax.
Sales and Use Tax
If you plan on selling goods or services, then you will need to pay sales and use taxes in Connecticut. The current sales tax rate is 6.35% and applies to all taxable items sold within the state of Connecticut.
Business Entity Tax
As of 2019, the business entity tax (BET) for limited liability companies no longer exists. This means Connecticut LLCs are not required to pay BET anymore.
Corporation Business Tax
A Connecticut LLC can either be taxed as a corporation or as a pass-through entity. If you choose to be taxed as a corporation (C-Corp), you will need to pay the Corporation Business Tax (CBT). The rate will be based on the corporation’s required annual payment.
Pass-Through Entity Tax
Requirements differ for a Connecticut LLC taxed as a pass-through entity or S-Corporation. In this case, the LLC will need to pay the Pass-Through Entity Tax (PET). Federal law imposes a 6.99% tax rate on an S-Corp’s taxable income.
Unemployment Insurance Tax
A Connecticut LLC must also pay the Unemployment Insurance Tax (UI), a federal tax imposed on small businesses to fund unemployment benefits. The UI rate for Connecticut employers changes every year but is generally between 3% to 5%.
Property Tax
In Connecticut, LLCs are required to pay property tax. The rates will vary by municipality and can range from 0.25% to 1%.
Other LLC Filing Costs
Aside from the main costs above, business owners must keep these additional service fees in mind.
LLC Name Reservation Fee
Before setting up a Connecticut business, it’s crucial to decide on a business name. Any Connectictut LLC should have “LLC” attached to its business name and not include language that would confuse it with a corporation (Inc., Corp, etc.).
You can check your name’s availability using the Connecticut Secretary of State’s business name search tool. If available, you can reserve the name for 120 days. A Connecticut LLC name reservation costs $60, and this is done through postal mail. This fee applies to both domestic and foreign LLCs.
“Doing Business As” (DBA) Name
Sole proprietorships and other business types can opt to use a “doing business as” (DBA) name instead of their legal name. This allows them to operate under a trading name or fictitious business name, making it easier for customers and clients to find the company.
In Connecticut, those who want to operate as DBA should file a Trade Name Certificate in the clerk’s office of the town where they conduct business. The filing fee is currently $10.
Business Domain Name & Website
In today’s digital era, it’s necessary to place any organization online. This means getting a domain name and creating a website, which can cost anywhere from $10 to $30 per year for the domain name and several hundred dollars or more for website hosting and design services.
Plain Document Copies
Plain copies of Connecticut business documents on record costs $40 per document.
Certified Document Copies
The fee for certified copies of Connecticut business documents on record is $55 per document.
Certificate of Good Standing
A Certificate of Good Standing, also known as a Certificate of Existence in Connecticut, is issued by the Secretary of State. It is required to prove that an LLC has paid all necessary fees and taxes and is compliant with state regulations. The express cost for this document is $55. The fee for a short-form certificate is $40, while a long-form certificate costs $55.
Articles of Organization Fee
Some states would charge extra for articles of organization. But in Connecticut, the initial filing fee of $120 for the Certificate of Organization is enough.
Attorney Fees
You may need to hire a lawyer to help with the LLC formation process. The cost of attorney services varies widely depending on the complexity of your business and the type of legal advice needed. Generally speaking, expect to pay between $500-$1,000 for an attorney’s professional service.
Tax ID Number (EIN)
It’s important to get a Federal Tax ID Number or an Employer Identification Number (EIN) for your LLC. This number is used to identify the business and open a business bank account, among other purposes. Fortunately, you can get this number for free.
6 Basic Steps to Start an LLC in Connecticut 2024
Choose a Name for Your LLC in Connecticut
Every LLC in Connecticut must have a unique business name. The name of your LLC should end with the words “Limited Liability Company,” “L.L.C.,” or an abbreviation thereof. You can also check if your desired business name is available by searching the Connecticut Secretary of State business database online.
Choose a Registered Agent in Connecticut
Registered agents are required for all LLCs in Connecticut. A registered agent is an individual or entity responsible for receiving legal documents and correspondence on behalf of your LLC. The registered agent must have a physical address in the state of Connecticut and be available during regular business hours.
Read More: Best Connecticut Registered Agents 2024
File Organizational Paperwork With the State
After you’ve chosen a business name and registered agent, you’ll need to file the articles of organization with the Connecticut Secretary of State. This document or application form outlines important information about your LLC, including its purpose and ownership structure.
Obtain a Certificate from the State
After filing the articles of organization, you’ll need to obtain a Connecticut Certificate of Organization. This document is issued by the Secretary of State after it has reviewed and approved your paperwork. You have official business once you have this certificate.
Prepare an LLC Operating Agreement
An LLC operating agreement outlines how your company will be managed and owned, as well as how decisions will be made within the business structure. An operating agreement is not legally required in Connecticut, but it’s still a good idea to create one so that all members are on the same page when it comes to running the business.
Obtain an EIN for Your LLC in Connecticut
An EIN, or employer identification number, is required if you plan to hire employees. It’s also necessary for filing taxes and opening a business bank account in the LLC’s name.
The Top 2 LLC Services in Connecticut
| Product |  |
 |
| Name | ZenBusiness | Northwest Registered Agent |
| Full review | Read full review | Read full review |
| Link | Check Price | Check Price |
ZenBusiness
For an affordable alternative, ZenBusiness is the best choice. Their packages start at $0 plus state fees, and they offer various services to help you with your LLC formation. This includes filing the necessary paperwork, handling all required registrations, and providing a registered agent service for $199.
Northwest Registered Agent
Northwest Registered Agent is a top choice for those looking to form an LLC in Connecticut. They provide one of the best LLC formation services in the state. Their packages include all the necessary paperwork and filing fees, as well as a registered agent service for $125 a year (free for the first year). Moreover, they offer flexible payment options, so you can pay for the service in one lump sum or spread out your payments over time.
Final Thoughts
Forming an LLC in Connecticut requires more than just completing the necessary paperwork. It also involves understanding the LLC costs, including state filing fees, legal requirements, and federal taxes. The process takes a lot of work. Fortunately, there are a number of services available to help you navigate it.
Ultimately, when forming a Connecticut LLC, it’s important to do your research so you can make the best decision for your business needs.
Frequently Asked Questions (FAQs)
The Connecticut Secretary of State requires all LLCs to file an annual report every year. You can file an annual report online. The due date is between January 1 to March 3.
A single-member LLC is a type of LLC where there’s only one owner. This means that the company will be taxed as a sole proprietorship, and all profits and losses will pass through to the individual owner.
When an LLC is established, it’s given limited liability status. This means that the company’s owners are not personally liable for the debts and liabilities of the business.
Yes, business insurance is an important part of any Connecticut LLC. Business owners should purchase liability and property insurance to protect their assets in case of a lawsuit or other financial loss.
The current sales tax rate in Connecticut is 6.35%. However, certain items may be taxed at a different rate.
Yes. All LLCs in Connecticut must appoint registered agents to accept legal documents on behalf of the company. You can appoint yourself as a registered agent, but it is strongly discouraged. While hiring one means additional costs, you should accept service from a registered agent.
Yes, a business operating as an LLC in Connecticut can register under a trading name. This is done by filing a Trade Name Certificate with your local municipality.
ABOUT THE AUTHOR
ABOUT THE REVIEWER
+ 7 sources
Bizreport Advisor adheres to strict editorial integrity standards avoids using tertiary references. We have strict sourcing guidelines and rely on peer-reviewed studies, academic research. To ensure the accuracy of articles in Bizreport, you can read more about the editorial process here.
-
IRS. Limited Liability Company LLC | Internal Revenue Service. Irs.gov. Published 2019. Accessed February 4, 2023. https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc
-
Frequently Asked Questions. CT.gov – Connecticut’s Official State Website. Accessed February 4, 2023. https://portal.ct.gov/SOTS/Business-Services/Frequently-Asked-Questions
-
Annual Report Fees. CT.gov – Business One Stop. Accessed February 4, 2023. https://business.ct.gov/knowledge-base/article/annual-report-fees
-
Business Entity Tax. CT.gov – Connecticut’s Official State Website. Accessed February 4, 2023. https://portal.ct.gov/DRS/DRS-Forms/Current-Year-Forms/Business-Entity-Tax-Return
-
Unemployment Insurance Tax. CT.gov. Accessed February 4, 2023. https://portal.ct.gov/dol/Divisions/Unemployment-Insurance-Tax
-
Withholding Tax Information. CT.gov – Connecticut’s Official State Website. Accessed February 4, 2023. https://portal.ct.gov/DRS/Individuals/Individual-Tax-Page/Withholding-Tax-Information
-
Tax Information. CT.gov – Connecticut’s Official State Website. Accessed February 4, 2023. https://portal.ct.gov/DRS/Taxes/Pass-Through-Entity/Tax-Information