How to Start an LLC in Connecticut: A Step-by-Step Guide for 2026

Is an LLC right for you?

A limited liability company (LLC) is the most common choice for new small businesses in Connecticut. It separates your business from you personally, it’s simple to run, and for tax purposes a one-owner LLC is treated like a sole proprietorship unless you choose otherwise. That means no separate federal business tax return for a single-member LLC: the profit goes on Schedule C of your personal return.

An LLC isn’t the only option. You can run a sole proprietorship without filing anything with the state, or form a corporation. If you expect strong profits, an LLC can later elect to be taxed as an S corporation. Our guide Do I need an S-Corp? explains when that pays off.

The 8 steps to form your Connecticut LLC

1. Choose a name and check that it’s available

Your name must include "Limited Liability Company," "LLC" or "L.L.C." (or an accepted abbreviation), and it has to be distinguishable from other businesses on file. Search the business records on Business.CT.gov before you commit. You can reserve a name for $60 if you aren’t ready to file yet, but most people simply file the LLC right away.

2. Pick a registered (statutory) agent

Every Connecticut LLC must name an agent with a Connecticut address to accept legal papers. It can be you, another person, or a commercial agent service. If you use your home, that address becomes part of the public record, which is why some owners pay for an agent service instead.

3. File the Certificate of Organization ($120)

Create a Business.CT.gov account and file the Certificate of Organization online. The fee is $120, paid by card. The online form asks for your LLC’s name, addresses and agent, among other details. You can see this fee and the others below on the Secretary of the State’s LLC forms and fees page.

4. Get a free EIN from the IRS

An Employer Identification Number is your business’s tax ID. Apply directly on IRS.gov. It’s free, so skip any website that charges for it. You’ll need an EIN to open a business bank account, run payroll, and keep your Social Security number off forms you give to clients.

5. Write an operating agreement

An operating agreement spells out who owns what, how decisions are made, and what happens if an owner leaves. You don’t file it with the state, but banks often ask for it, and it’s essential if you have a partner.

6. Register with the Department of Revenue Services, if needed

If you sell taxable goods or services, register on myconneCT for a Connecticut sales and use tax permit. The permit costs $100, and the general sales tax rate is 6.35%. If you’ll have employees, register for withholding with DRS (no fee), for unemployment insurance with the CT Department of Labor, and with CT Paid Leave.

7. Open a business bank account and set up your books

Keeping business money separate from personal money is the single most important habit for a new LLC. It protects the liability shield and makes tax time far easier. Set up bookkeeping (for example QuickBooks Online) from day one and connect it to your business account.

8. Check local requirements

If you do business under a name that’s different from your LLC’s legal name, file a trade name certificate with your town clerk. If your business owns furniture, fixtures or equipment, file a personal property declaration with your town assessor by Nov. 1 each year. Ask your town about any zoning or permit rules for your type of business.

How a Connecticut LLC is taxed

• One owner: by default the IRS treats the LLC as a "disregarded entity." You report profit on Schedule C and pay income tax plus 15.3% self-employment tax on 92.35% of your net earnings.
• Two or more owners: by default it’s a partnership. The LLC files Form 1065 by March 15 and gives each owner a K-1. Connecticut partnerships file Form CT-1065/CT-1120SI.
• S corporation election: an LLC can file Form 2553 to be taxed as an S corporation, which can cut self-employment tax once profits are high enough. Compare with our LLC vs. S-Corp calculator.
• No more business entity tax. Connecticut’s old business entity tax ended for tax periods beginning after Dec. 31, 2018.
• Estimated payments. Without a paycheck, you usually pay federal and Connecticut estimated tax four times a year. See our quarterly tax calculator and the tax deadline calendar.

What you file every year

Connecticut LLCs file an annual report online at Business.CT.gov between Jan. 1 and March 31 every year, starting the year after you form the LLC. The fee is $80. It confirms your addresses, members or managers, agent and industry code. If you don’t file, you can’t get a certificate of legal existence, and the state may eventually dissolve your LLC. Add the date to your calendar from our deadline calendar.

What it costs to start an LLC in Connecticut

Add your own costs for a registered agent service, bookkeeping software, insurance and a website. Our CT startup cost calculator adds it all up, one-time and monthly.