Connecticut New Business Checklist (2026)
Every state, town and IRS step to start a business in Connecticut, in order, with the real fees: forming an LLC, getting an EIN, registering with CT DRS, hiring your first employee and the yearly deadlines most new owners miss.
What’s inside
- Choosing a structure and name, including when you need a trade name certificate
- Forming an LLC: the $120 filing and the $80 annual report
- Your free EIN and CT DRS registrations, including the $100 sales tax permit
- The registrations to finish before your first hire
- Yearly deadlines: annual report, November 1 property declaration and more
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The full checklist
1. Choose your structure and name
- Pick a structure. A sole proprietorship needs no state filing. An LLC is a separate legal entity filed with the CT Secretary of the State.
- Search your name in the business records at business.ct.gov. An LLC name must include “LLC,” “L.L.C.” or “Limited Liability Company.”
- Using a name other than your own (sole proprietor) or your LLC’s registered name? File a trade name certificate with the town clerk where the business is mainly conducted. The fee is $20, it must be signed before a notary or the town clerk, and it’s valid for 5 years.
2. Form your LLC (skip if staying a sole proprietor)
- Choose a registered agent with a Connecticut address to receive legal papers. You can be your own agent if you live in CT.
- File the Certificate of Organization online at business.ct.gov. State fee: $120. Save the filing for your bank.
- Write an operating agreement. It isn’t filed with the state, but banks often ask for it and it sets out who owns and runs the business.
3. Get your federal tax ID
- Apply for an EIN directly at irs.gov. It’s free, so skip any site that charges for one.
- Thinking about an S-Corp election? Run the numbers first with our LLC vs. S-Corp calculator. The election is IRS Form 2553.
4. Register with CT DRS (myconneCT)
- Selling, renting or leasing goods, or selling taxable services in CT? Register for a Sales and Use Tax Permit on myconneCT. Fee: $100 per location. Display the permit where customers can see it.
- Know the rate. The general CT sales tax rate is 6.35%, and towns don’t add local sales tax. Some items have special rates.
- File Form OS-114 on schedule (monthly, quarterly or annually, as DRS assigns), even when you had no sales. It’s due by the last day of the month after the period ends.
- Not collecting sales tax? You should still register for business use tax if you buy taxable items for the business without paying CT tax.
5. Set up your money and tools
- Open a business bank account and keep business and personal money separate.
- Set up bookkeeping (for example QuickBooks Online) and connect your bank.
- Get professional email on your own domain (for example Google Workspace).
- Decide how customers will pay (card, ACH, payment links).
- Set aside money for taxes and plan quarterly estimated payments. Try our Quarterly Estimated Tax calculator.
6. Before you hire your first employee
- Register for CT income tax withholding with DRS on myconneCT (no fee).
- Register for unemployment insurance with the CT Department of Labor through ReEmployCT. All employers of one or more people must register.
- Report each new hire to the CT Department of Labor within 14 days if you report online, or 20 days by fax or mail.
- Get workers’ compensation insurance. With few exceptions, every Connecticut employer must carry it.
- Register with CT Paid Leave, deduct 0.5% of each employee’s wages (up to the Social Security wage base) and send it in quarterly. Give employees the required notice of rights when hired and every year.
- Set up payroll so withholding and filings happen on time. See the full cost with our Employee Payroll Cost calculator.
7. Yearly deadlines to calendar
- LLC annual report: file online between January 1 and March 31 each year, starting the year after you form. Fee: $80. If you skip it, the state can dissolve your LLC.
- Personal property declaration: if the business owns furniture, fixtures or equipment, file with your town assessor by November 1. Late filing adds a 25% penalty to the assessment.
- Trade name renewal every 5 years, if you have one.
- Good news: Connecticut’s old $250 business entity tax no longer exists.
Sources (checked October 30, 2026)
- CT Secretary of the State, LLC forms and fees (Certificate of Organization $120; annual report $80, Jan 1 to Mar 31)
- CGS § 34-247k (first LLC annual report due the year after formation)
- CGS § 34-243k (LLC name must include “LLC,” “L.L.C.” or “Limited Liability Company”)
- CT Secretary of the State, File an Annual Report (state may dissolve if not filed)
- CT Secretary of the State, Trade Names ($20, town clerk); CGS § 35-1a (5-year validity, acknowledgment)
- IRS, Get an EIN (free)
- CT DRS, Sales and Use Tax Information (permit $100, 6.35%, OS-114, business use tax)
- CT DRS, Registering with DRS / Withholding (no fee)
- CT DOL, How do I Register (unemployment, ReEmployCT)
- CT DOL, New Hire Reporting (14 days online, 20 days fax/mail)
- CT Workers’ Compensation Commission, insurance requirements
- CT Paid Leave Authority, I am an Employer (register, 0.5%, quarterly)
- CGS § 12-41 (personal property declaration by Nov 1, 25% penalty)
- CT DRS, Business Entity Tax sunset (PA 19-117)
General information only, not tax or legal advice. Requirements depend on your business; confirm with the agency before you file.
Rather have it done for you? Our Business Launch Setup handles the setup steps.