How to Start an LLC in Connecticut
To start an LLC in Connecticut you must file a Certificate of Organization with the Connecticut Secretary of State, pay a $120 filing fee, and get an EIN from the IRS. The complete steps to forming a Connecticut LLC are as follows:
- File a Connecticut Certificate of Organization
- Pay the $120 filing fee to the Connecticut Secretary of State
- Wait for a copy of your approved Certificate to be returned (+$40 for mailed filings)
- Get a Federal EIN tax ID for the LLC
- Create a Connecticut LLC Operating Agreement
- Take these documents to the bank and get a Connecticut LLC bank account
- Register with the Connecticut Department of Revenue Services
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Connecticut LLC Certificate of Organization free download. When you're done filling out the form, submit it to your state.
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2 Day Connecticut LLC For $345 Total
How to File a Connecticut LLC Certificate of OrganizationTo form a Connecticut LLC, you file the LLC Certificate of Organization in the following steps:
What is the Cost of a Connecticut LLC?
The filing fee is $120. Hire Northwest, and your total, out-the-door cost is $345, including state filing fees and a full year of registered agent service.
How much does an LLC in Connecticut cost each year?
LLCs have an Annual Report filing fee of $20 each year. Every other year, most LLCs also have to pay a special $250 tax called a Business Entity Tax.
What is the Connecticut personal net income tax rate?
The Connecticut personal net income tax rates for single filers are:
Is a Connecticut LLC Registered Agent Required?
Yes, Connecticut requires LLCs to have and maintain a registered agent. There’s no requirement to hire one (it’s possible to appoint yourself), but that’s not without its own problems.
For example, everyone in Connecticut knows someone who’s hit a deer with their car. Yet so many people assume it will never happen to them. Because they’re good drivers (at least better than New York drivers). People make the same kind of mistake with registered agents. They think that because they’re good business owners, they’ll never get sued. They’ll never have to worry about a process server dropping by. So they list themselves as their own registered agent and promptly forget about the availability requirements. But businesses get sued every day. Process servers fail to find agents at their registered addresses every day. And lawsuits move forward.
When you hire a registered agent service like Northwest, you never have to worry about missing a service of process. We scan and send legal notifications to you the same day, so you know what’s going on no matter where you are.Get Started
Connecticut LLC Versus Connecticut Corporation:
Starting a Connecticut LLC is easier on the wallet than a corporation. While the filing fee to start a corporation is technically lower ($100 vs $120), that doesn’t account for the franchise tax that’s paid upon incorporation. The corporate franchise tax starts at $150 for up to 20,000 shares of stock, making starting a corporation a minimum of $250 ($100 filing fee + $150 franchise tax).
Maintaining your Connecticut LLC will also cost you less. The Annual Report fee is a paltry $20 for LLCs compared to the $150 required for corporations. And, while C corporations are exempt from the $250 a year BET, the MINIMUM corporate business tax just happens to be…$250.
Corporations may be more expensive, but they can still be a good fit for some businesses. Here is more information on Connecticut incorporation.
Do I Need a Tax ID Number (EIN) for a Connecticut LLC?
You’ll need an EIN if you want to hire employees. You’ll also need an EIN for a handful of local and federal tax filings. For example, you’ll need an EIN if you use the paper form to file your Connecticut Business Entity Tax.
EINs are useful for more than just hiring employees and filing tax forms—anything to do with your business finances tends to be easier with an EIN. Most banks ask for one when you go to open a business bank account. Vendors will commonly ask for one as well when you want to establish credit. You can often use your personal social security number instead, but who wants to do that? Especially when EINs are free from the IRS. Don’t want to be bothered with yet more paperwork? Add on EIN service when you hire Northwest, and we’ll apply on your behalf.
Does a Connecticut LLC Need a Business License?
Some Connecticut businesses will need licenses. There’s no statewide business license, but local licenses are required in some cities and counties. For example, any business in Norwalk will require an annual business license while only some businesses require a license in Hartford. Run a bowling alley in Hartford? You’ll shell out a $75 fee for a business license.
Connecticut also requires professional licenses for some state-regulated professions. From architects to hypnotists, the Connecticut State Department of Consumer Protectionmaintains a list of occupations requiring special licensing.
What is the Connecticut sales tax rate?
The Connecticut sales tax rate is 6.35% for most goods and services, but there are some exceptions (up to 9.35% for short-term vehicle rentals and as low as 1% for computer and data processing services).
What are property tax rates in Connecticut?
One of the strangest things about Connecticut is that property taxes are individually managed by its 169 cities and towns, not its 8 counties. What does that mean for you? Vast, vast differences in property tax rates.
For a half million dollar property (market value), you’d likely pay under $5K in taxes in Greenwich or Roxbury but over $25K (yikes!) in Hartford. While the highs are really high, if you scout around, you can find some good deals—especially compared to neighboring areas. Across the state border, Westchester County, New York had the highest average property taxes in the nation in 2016. The grass is a bit greener in Connecticut—and there’s much more of it to go around: the population density in Fairfield County is a third of Westchester. It’s no wonder why so many New Yorkers are flocking to Connecticut.
Investing in Connecticut real estate? Your accountant will likely suggest setting up an LLC. An LLC limits your liability and can help you maintain your privacy by keeping your name out of public records. At Northwest, we can form your Connecticut LLC for just $345.
Connecticut LLC Certificate of Organization Requirements
Include the phrase “Limited Liability Company” or an abbreviation like “LLC” in your name. You can’t pick a name already in use in Connecticut.
If filing online, this is the address where the Secretary of State will send your approved Certificate of Organization.
List a street address (no PO Boxes) for your business. Hire us, and you can list our address.
You can list an individual resident of Connecticut and include the street address where they’ll be available. Or, hire Northwest and our name and address will go here.
Connecticut LLC Members/Managers
You’re required to list the name, business address and residence address of at least one member or manager, and you can’t use PO Boxes. You don’t have to list all your members and managers and their addresses in your Certificate of Organization though, so if privacy is important to you (as it is to us), know that you only need to list one.
Connecticut LLC Organizer
An organizer includes their name and signs the LLC’s Certificate of Organization. Organizers don’t have to be members, managers, or anyone with ownership interest in your LLC. When you hire Northwest, we’ll be your organizer.