How to Form an LLC in Connecticut | 2025 Guide

If you’re ready to start a business and want liability protection without the complexity of a corporation, consider an LLC in Connecticut. You’ll protect your personal assets from business debt, choose how your business income is taxed, and establish a formal business structure that fits your needs.

In this guide, you’ll learn exactly how to form an LLC in Connecticut step by step. We'll cover everything from filing your Certificate of Organization to choosing a Connecticut registered agent, paying your filing fee, and staying compliant with Connecticut annual reports and tax obligations. We'll also discuss the Wise Business account. The global account that can help your company with all things cross-border.

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How to Start an LLC in Connecticut (Step-by-Step)

Step 1: Choose a Name for Your Connecticut LLC

Your LLC name must include a designator like “Limited Liability Company,” “LLC,” or “L.L.C.” and be distinguishable from existing business entities in the state. Use the Connecticut Secretary of the State’s Business Search tool¹ to verify availability.

If you’re not ready to file immediately, you can reserve your name for 120 days for a $60 fee. This isn’t required, but it ensures your chosen name is protected while you complete other steps.

Step 2: Appoint a Connecticut Registered Agent

Every LLC must designate a Connecticut registered agent—a person or business entity authorized to receive legal and tax documents on behalf of the LLC. The agent must have a physical address in Connecticut (P.O. boxes are not acceptable).

You can serve as your own agent, but many business owners hire a professional service to ensure availability during business hours and maintain privacy.

Step 3: File the Certificate of Organization

To officially create your LLC, you must file a Certificate of Organization with the Connecticut Secretary of the State. This document includes:

• LLC name.
• Principal office address.
• Registered agent’s name and address.
• Management structure (member-managed or manager-managed).
• Email address (optional).

You can file the paperwork online² or submit it by mail. The filing fee is $120. Online filing typically processes within 2–3 business days, while mailed submissions may take up to 10. Once approved, your LLC receives Connecticut certification, confirming that your business is officially recognized by the state.

Step 4: Draft an Operating Agreement

Although not required by the state, an operating agreement is highly recommended. This internal document outlines:

• Ownership percentages.
• Roles and responsibilities of members/managers.
• Voting rights.
• Profit and loss distribution.
• Procedures for adding or removing members.

A strong agreement helps prevent internal disputes and proves useful if your business is ever audited or enters litigation.

Step 5: Get an EIN from the IRS

An Employer Identification Number (EIN), also called a Tax ID, is like a Social Security Number for your business. You'll need an EIN to:

• Open a business bank account.
• Hire employees.
• Pay taxes.
• File federal returns and other required documents.

Apply online through the IRS website³—there’s no fee, and approval is instant for most applicants.

Step 6: Register for State Taxes (if applicable)

Depending on your industry and revenue, you may need to register with the Connecticut Department of Revenue Services (DRS)⁴. For example:

• Retailers must collect and remit state sales tax (6.35%).
• Employers must register for withholding tax.
• Businesses may also need to pay business income taxes.

LLCs themselves do not pay state income taxes by default. Instead, profits pass through to members, who report earnings on their personal tax returns. However, you may elect to have your LLC taxed as a corporation, which changes the filing structure.

Step 7: Apply for Business Licenses and Permits

There is no statewide general business license in Connecticut, but certain industries require permits (e.g., food service, health care, construction). You should check:

• The Connecticut Business Center.⁵
• Your city or county government offices.

Failing to obtain proper business licenses can result in fines or delays.

Step 8: File Your Connecticut Annual Report

Every LLC in Connecticut is required to file an annual report to remain in good standing with the state. The report is due by March 31 each year and must be submitted to the Secretary of State. The filing fee is $80, and the report must be filed online through the CT Business Center. If you miss the deadline, your LLC risks administrative dissolution.

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What Are the Business Requirements for a Connecticut LLC?

To remain compliant, your Connecticut LLC must meet several ongoing requirements:

• Maintain a valid Connecticut registered agent.
• Keep an updated operating agreement (especially for multi-member LLCs).
• Separate business and personal finances with a business bank account.
• File Connecticut annual reports each year.
• Track and pay taxes owed to both the IRS and the state.
• Renew any business licenses or permits.

What Are the Benefits of Starting an LLC in Connecticut?

Here’s why Connecticut appeals to entrepreneurs:

• Liability protection: Unlike a sole proprietorship, an LLC gives you personal liability protection, meaning your home, savings, and other personal assets aren’t at risk. Your personal assets are shielded from business debt or lawsuits.
• Tax benefit: Pass-through taxation avoids double taxation (unless you elect corporate status).
• No minimum capital requirements.
• Name privacy: Member names do not need to be listed in public filings.
• Flexible management: LLCs can be managed by members or appointed managers.
• Accessibility: You can file online in just a few days.

Connecticut’s 6.35% sales tax rate⁶ is moderate compared to other states. You only pay state income taxes on net business income that passes through to you.

How Much Does It Cost to Start an LLC in Connecticut?

Expense	Cost
Certificate of Organization	$120
Name Reservation (optional)	$60
Annual Report (recurring)	$80/year
Registered Agent (optional)	$100–$300/year
Business Licenses & Permits	Varies
EIN (via IRS)	Free

Keep in mind that if you hire an attorney or use a formation service, you'll incur additional costs.

Can I Open an LLC in Connecticut Without Living There?

Yes. You do not need to be a Connecticut resident to form an LLC in the state. However, you must still appoint a Connecticut-registered agent with a physical address in the state.

Can a Nonresident Open a Company in Connecticut?

Absolutely. There are no citizenship or residency requirements to form a Connecticut LLC. Non-U.S. residents can:

• File a Certificate of Organization.
• Obtain an EIN through the IRS website.
• Use a registered agent service to fulfill legal presence requirements.
• Open a U.S.-based business bank account (some banks may require a U.S. mailing address or ITIN).

Comparison with Other States

Feature	Connecticut	Delaware	New York	Massachusetts
Formation Filing Fee	$120	$90	$200	$500
Annual/Biennial Report Fee	$80/year	$50/year	$9 (biennial)	$500/year
Registered Agent Required	Yes	Yes	No (optional)	No (optional)
State Income Tax	Yes	No	Yes	Yes
Online Filing Available	Yes	Yes	Yes	Yes
Foreign LLC Registration	Allowed	Allowed	Allowed	Allowed
Member Names Public?	No	Yes (optional)	Yes	Yes
Processing Time (Online)	2–3 business days	Same-day to 3 days	1–2 weeks	1–2 business days
Publication Requirement	No	No	Yes (can cost $1,000+)	No

• Connecticut offers a balanced approach with moderate fees, strong privacy for members, and fast online filing—ideal for small business owners and non-residents.
• Delaware is often chosen for its pro-business court system, but it’s best suited for large corporations or startups seeking investor funding, not local small businesses.
• New York imposes high formation costs and requires expensive newspaper publication, making it one of the least startup-friendly states despite low biennial reporting fees.
• Massachusetts has the highest startup and maintenance costs, which can be a barrier for new business owners, though it supports strong economic infrastructure and local business programs.

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FAQs About Connecticut LLCs

Are There Privacy Protections for Connecticut LLCs?

While Connecticut requires some public filing details, it does not mandate listing all LLC members in the Certificate of Organization. Using a registered agent helps keep your personal address private.

Why Do People Use Connecticut for LLCs?

Connecticut is ideal for small and mid-sized businesses wanting a straightforward formation process, solid liability protection, and access to East Coast markets. With online filing and relatively low startup fees, it offers a practical alternative to more expensive states.

Is a Connecticut LLC Tax-Free?

No. Connecticut LLCs benefit from pass-through taxation, meaning the LLC itself doesn't pay state income taxes. Instead, members report profits on their personal tax returns. You’ll also pay business income taxes, sales tax (if applicable), and other employer-related taxes.

What Are the Disadvantages of a Connecticut LLC?

• State income taxes apply to pass-through income.
• The annual report is mandatory and carries a fee.
• Local business licenses can be complex to manage depending on the industry.
• No centralized state licensing portal (must work with multiple agencies).

Conclusion

If you follow the right steps, it’s surprisingly easy to start an LLC in Connecticut. File your Certificate of Organization, choose a registered agent, create an operating agreement, and get your EIN. After that, focus on filing annual reports, paying taxes, and maintaining a separate business bank account.

You don’t need to overthink it. Handle the setup properly now, and you’ll save yourself time, money, and legal headaches later.

Learn How to Form an LLC in These States
Connecticut
Colorado
California
Arizona
Maryland

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Sources:

1. Connecticut Business Search Results
2. Certificate of Organization – Domestic LLC (PDF)
3. Apply for an EIN – IRS
4. Connecticut Department of Revenue Services (DRS)
5. Connecticut Business Portal
6. Sales and Use Tax Information – CT DRS