How to Form an LLC in Connecticut

Connecticut is a solid choice for entrepreneurs who plan to do business in the state. Forming an LLC here gives you personal liability protection — meaning your personal finances aren't on the hook for business debts or lawsuits — along with a flexible management structure and pass-through taxation by default.

The state has a well-established business infrastructure, access to a skilled workforce, and proximity to major Northeast markets. Connecticut also offers targeted small business funding programs and tax incentives for qualifying businesses, though eligibility criteria vary. A tax professional can help you figure out which programs apply to your situation.

One thing worth knowing: Connecticut's annual report fee and filing requirements are straightforward compared to some states, which makes staying in good standing easier once you're up and running.

Forming an LLC in Connecticut takes 6 steps: choose a name, designate a registered agent, file your Certificate of Organization with the Connecticut Secretary of the State, create an operating agreement, apply for an EIN, and get any required licenses or permits. Here's what each step involves.

Forming an LLC in Connecticut costs $120 — that's the state filing fee for the Certificate of Organization, paid to the Connecticut Secretary of the State. There's no separate publication requirement in Connecticut, which keeps upfront costs lower than in states like New York.

Beyond the formation fee, plan for the annual report fee due each year by March 31. Connecticut also charges a fee for name reservation if you choose to use that option, though it's not required.

A few Connecticut-specific details are worth knowing before you file. First, Connecticut uses the term 'Certificate of Organization' — not 'Articles of Organization.' If you've formed an LLC in another state, the name difference can catch people off guard, but the document serves the same purpose.

Connecticut also requires LLCs to file an annual report each year by March 31. Missing this deadline can put your LLC out of good standing with the state, which can affect your ability to do business and access financing. File on time to keep your status current.

If your LLC is in a licensed profession — law, medicine, accounting, architecture, and others — Connecticut allows the formation of a Professional Limited Liability Company (PLLC). The formation process is similar, but all members must hold the required professional license. Talk to a legal professional if you're not sure whether your occupation qualifies.

Connecticut doesn't have a state-level LLC franchise tax, which is a meaningful difference from states like California, where LLCs owe an $800 minimum franchise tax regardless of income. Connecticut LLCs are taxed at the federal level based on their elected tax classification. If your LLC is taxed as a corporation, Connecticut's corporate income tax rate is 7.5%. A tax professional can help you figure out the right structure for your situation. (Source: Connecticut Department of Revenue Services — https://portal.ct.gov/drs/list-of-filing-requirements-for-businesses)