The Complete Guide to Setting Up a Business in Connecticut

Forming an LLC in Connecticut

Launching your Connecticut LLC with us is simple, fast, and built to take the stress out of starting a business. Once we receive your completed information, our team prepares and files your Certificate of Organization with the Connecticut Secretary of the State within 24 hours. Our base package starts at $49 (plus state fees) and covers everything needed to establish your business, including a Connecticut business address, name availability check, registered agent service, operating agreement, and digital mail scanning for up to five pieces of business mail each year (excluding junk and registered agent correspondence).

We also help U.S. and international clients secure an Employer Identification Number (EIN) and open a business bank account at no extra cost. For those without a Social Security Number, we file your EIN application by fax to speed up IRS processing and prevent unnecessary delays.

Our approach is different from large, impersonal filing services. We do not upsell or hide extra costs. Our goal is to get your Connecticut LLC formed quickly, correctly, and with clear communication throughout the process. Whether you are starting a consulting firm in Stamford, a small shop in New Haven, or an online business from home, our experienced team makes forming your LLC in Connecticut a smooth and reliable experience.

What is an LLC?

A Limited Liability Company (LLC) is a flexible business structure that allows Connecticut entrepreneurs to protect their personal assets while maintaining control over how their company is managed and taxed. It combines the liability protection of a corporation with the simplicity and tax efficiency of a sole proprietorship or partnership, making it one of the most popular structures for new and growing businesses in the state.

Forming an LLC in Connecticut creates a legal separation between you and your business, so your personal property, such as your home, car, or savings, is generally protected from business debts and lawsuits. Connecticut LLCs are also eligible for pass-through taxation, meaning profits and losses flow directly to the members and are reported on their individual tax returns, avoiding double taxation.

From family-owned restaurants in Hartford and small retail boutiques in Greenwich to real estate firms and technology startups across the state, Connecticut LLCs cover nearly every industry. This structure offers business owners credibility, flexibility, and the confidence that their venture is built on a strong legal and financial foundation.

Connecticut LLC Benefits & Disadvantages

One of the key advantages of forming an LLC in Connecticut is the state's access to major economic hubs like New York and Boston, giving local businesses proximity to some of the most lucrative markets in the country. Connecticut also offers a highly educated workforce, strong infrastructure, and business development resources through the Connecticut Department of Economic and Community Development (DECD) and the Connecticut Small Business Development Center (SBDC). These programs provide guidance, funding, and support for both new and expanding businesses.

However, business owners should be aware that Connecticut has higher operating costs than many other states, including higher taxes and filing fees. LLCs must also file an annual report and pay a recurring state business entity tax. For businesses operating on narrow margins, these expenses can add up.

Even so, the benefits often outweigh the challenges. Connecticut's strong talent pool, access to major markets, and supportive small business resources make it an excellent location for entrepreneurs seeking long-term growth and credibility.

Designating a Connecticut Registered Agent

Every LLC formed in Connecticut must designate a registered agent to receive official correspondence from the state, including legal notices, service of process, and annual report reminders. The registered agent must have a physical street address in Connecticut and be available during normal business hours to accept documents on behalf of the company.

Some Connecticut business owners choose to act as their own registered agent, but doing so requires publishing their personal address in public records and being available during the workday to receive legal mail. For entrepreneurs who travel frequently, operate from home, or manage more than one location, this arrangement can quickly become inconvenient.

Hiring a professional registered agent service provides greater privacy and reliability. It helps ensure that your Connecticut LLC never misses an important notice or filing deadline, keeping your business in good standing with the Secretary of the State while allowing you to focus on running and growing your company.

Drafting a Connecticut Operating Agreement

An operating agreement is a key document for any Connecticut LLC. It outlines how the business will be managed, how profits and losses are distributed, and what happens if a member leaves or the company dissolves. While Connecticut law does not require LLCs to have an operating agreement, having one in place helps prevent disputes and provides a clear framework for how the business operates.

A well-drafted operating agreement defines ownership percentages, voting rights, management duties, and procedures for admitting new members. It also helps demonstrate that your LLC is a separate legal entity, which strengthens your liability protection in the event of a lawsuit or financial dispute.

Even single-member LLCs benefit from having an operating agreement, as it clarifies the company's structure for banks, investors, and the IRS. When you form your LLC with us, we include a customizable Connecticut operating agreement that meets state standards and can be tailored to your specific needs. This gives your business a strong foundation for growth and long-term success.

Connecticut LLC Costs & Fees

Forming and maintaining an LLC in Connecticut involves several key expenses that business owners should plan for.

• Certificate of Organization – $120: This one-time filing fee is paid to the Connecticut Secretary of the State to officially create your LLC.
• Annual Report – $80: Every Connecticut LLC must file an annual report to remain in good standing. Reports are due each year by March 31 and can be submitted online through the Connecticut Business One Stop portal.
• Registered Agent Fee – Varies: If you choose to hire a registered agent instead of acting as your own, costs typically range from $100 to $300 annually.
• Other Potential Costs:
  • Name reservation (not required): $60
  • Certified copies of documents: Generally $55 per filing

While Connecticut's filing fees are higher than those in some other states, the state offers strong legal protections, access to major economic centers, and a skilled workforce that supports long-term business growth. With proper planning, forming an LLC in Connecticut can be a valuable investment in your company's stability and credibility.

Connecticut LLC Taxes

LLCs in Connecticut benefit from flexible tax treatment that allows business owners to choose how their company is taxed. By default, a Connecticut LLC is treated as a pass-through entity, meaning profits and losses flow directly to each member's personal tax return. This avoids the double taxation that typically applies to corporations. Members pay federal income tax and state income tax on their share of the company's earnings.

LLCs can also elect to be taxed as a corporation by filing the appropriate forms with the IRS. Some businesses choose this option if it provides a better overall tax outcome based on income level, reinvestment strategy, or expansion plans.

In addition to state income tax, Connecticut LLCs may be responsible for other state and local taxes depending on their business activities, such as:

• Sales and Use Tax: Connecticut's statewide sales tax rate is 6.35%, though certain items like luxury goods and meals at restaurants may be taxed at higher rates (up to 7.75%).
• Employer Taxes: Businesses with employees must register for withholding tax and unemployment insurance. The withholding tax rate depends on employee income, while the unemployment insurance tax typically ranges from 1.7% to 6.6% on the first $15,000 of each employee's wages.
• Business Entity Tax: This was a flat $250 biennial tax, but it was eliminated for tax periods beginning on or after January 1, 2020.

Because Connecticut's tax obligations vary based on your business type and revenue, it's best to work with a qualified accountant or business attorney to determine your exact requirements and identify potential credits or deductions that can reduce your total tax burden.

Connecticut Business Formation Stats & Growth Trends

Connecticut's business landscape continues to show steady growth and diversification. In 2023, entrepreneurs filed more than 48,000 new business applications, representing a 10% increase from the previous year and one of the highest totals in state history. The momentum reflects growing confidence in Connecticut's economy, fueled by access to major markets, strong educational institutions, and a skilled workforce. The state's strategic location between New York City and Boston makes it a prime destination for startups, small businesses, and established companies expanding their East Coast presence.

Small businesses are the backbone of Connecticut's economy, accounting for 99% of all businesses and employing nearly half of the state's private-sector workforce. These companies drive growth across key industries such as financial services, healthcare, technology, professional services, and retail. In recent years, Connecticut has seen significant activity in sectors like biotech, renewable energy, and financial technology, supported by state programs that encourage innovation and entrepreneurship.

Business development remains strong, supported by initiatives from the Connecticut Department of Economic and Community Development (DECD) and the Connecticut Small Business Development Center (SBDC). These organizations provide funding, mentorship, and market expansion support to help entrepreneurs launch and scale their companies. Continued investment in infrastructure and workforce development further strengthens the state's business climate.

With its skilled talent base, access to major metropolitan markets, and commitment to innovation, Connecticut offers a strong environment for business formation and long-term growth. Entrepreneurs continue to choose Connecticut for its blend of opportunity, stability, and connectivity, positioning the state as one of the Northeast's most promising places to start and grow a business.

Connecticut EIN & Bank Account

Once your Connecticut LLC is approved, the next step is to obtain an Employer Identification Number (EIN) from the IRS. This number identifies your business for tax and banking purposes and is required if you plan to hire employees, apply for business credit, or open a company bank account. Most business owners can apply online and receive their EIN immediately. International applicants who do not have a Social Security Number can still obtain one by submitting their application by mail or fax.

Opening a business bank account is just as important as securing your EIN. Keeping your business finances separate from your personal accounts is essential for maintaining liability protection and simplifying bookkeeping. Connecticut offers a wide range of banking options, from large national institutions to strong regional and community banks with personalized support for small businesses.

When opening your business account, you will typically need to provide your Certificate of Organization, EIN confirmation letter, and operating agreement. Some banks may also ask for proof of address or identification for all members. Maintaining accurate financial records—such as deposits, expenses, and owner draws—helps preserve your LLC's limited liability protection and ensures clean records for tax filing.

With an EIN in place and a dedicated business account, your Connecticut LLC will have a strong financial foundation to operate efficiently, maintain compliance, and prepare for future growth.

About LLC Attorney

Effective planning is crucial in business, where the risks and rewards are significant. LLC Attorney's approach to business formation services extends well beyond simple LLC establishment. We ensure our clients receive more than just a certificate of formation. Our services encompass comprehensive asset protection, registered agent services, and estate planning, providing significant value beyond the fundamental legal structure. We take pride in building lasting relationships with our clients, supporting them well beyond the initial setup to help maintain ongoing compliance and success.

3 Reasons to Choose LLC Attorney for Your Connecticut LLC

Fast

Get your LLC formation filed within 24 hours. When you’re ready, we’re ready.

Affordable

We keep our pricing low and transparent. You don’t have to worry about surprise costs.

Reliable

We have a curated group of experienced attorneys and business success advisors.

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