Connecticut LLC Costs
Small business owners and entrepreneurs benefit from converting a business into an LLC. It allows them access to liability protection, special tax benefits, incentives, and a flexible management structure. Some business owners think that LLC formation is complicated and too expensive. However, it is actually straightforward and worth the cost.
Recommended LLC Services
Costs to start an LLC in Connecticut
LLC Certificate of Organization ($120)
- You must file your Certificate of Organization with the Connecticut Secretary of State.
- The cost to file your Connecticut Certificate of Organization is $120.
- Connecticut offers expedited 24-hour LLC services for an additional $50.
Connecticut annual report fee ($80)
- In Connecticut, you must file an annual report with the Secretary of State.
- You will file your annual report online using the Connecticut Secretary of State website.
- The annual report fee is due at the end of your LLC anniversary month each year.
- The Connecticut annual fee is $80.
- If you fail to pay your annual report fee, you could face possible dissolution.
Connecticut registered agent fee (varies between $50 to $300)
- In Connecticut, you must appoint a registered agent to form an LLC in the state.
- When you appoint a registered agent, you are letting the Secretary of State know that someone is physically available during business hours to accept subpoenas, tax notices, and other essential documents.
- You can appoint anyone as a registered agent as long as they meet the state requirements. That includes yourself.
- The LLC cost for a registered agent in Connecticut depends on the appointed commercial service, LLC needs, and state filing fees.
Fees to form a foreign LLC in Connecticut ($120)
- If you have an existing limited liability company in another state and are expanding to Connecticut, you must register it as a foreign LLC.
- You can register a foreign LLC using the Connecticut Secretary of State website.
- Or, you can complete the Foreign Registration Statement and submit it by mail.
- The LLC cost to register a foreign LLC in Connecticut is $120.
LLC name reservation fee ($60)
- Connecticut does not require you to reserve an LLC name before formation.
- But, when reserving an LLC name, it ensures that no one else can register the same name in Connecticut.
- A Connecticut LLC name must be unique and available for use.
- You can reserve a Connecticut LLC name for up to 120 days before formation.
- You can use the Secretary of State website to reserve a company name online.
- Or, you will complete the Application for Reserving of Name form and submit it by mail.
- The cost to reserve an LLC name in Connecticut is $60.
DBA filing fees in Connecticut (varies depending on county)
- The business term DBA is an acronym for ‘doing business as,’ A DBA, or an assumed name, is any registered name that a person or company uses to operate under that is not the legal name.
- LLCs in Connecticut do not have to register a DBA. However, it does help with marketing when you register a DBA.
- A DBA does not have to be unique in Connecticut.
- You will go through your county clerk to register a DBA in Connecticut, and processes will vary depending on the jurisdiction.
Cost of certified document copies ($55)
- You will complete the Request for Copies form and submit it to the Secretary of the State of Connecticut.
- The cost for Connecticut certified LLC documents is $55.
Connecticut Certificate of Legal Existence ($50 online)
- Before allowing you to open a business bank account, banks will require you to submit a Connecticut Certificate of Legal Existence.
- You can order a Certificate of Legal Existence online using the CT.gov website.
- Or, you can complete the Request for Certificates/Legal Existence form and submit it by mail to the Connecticut Secretary of State.
- The filing cost for a Connecticut Certificate of Legal Existence is $50 for the short form and $100 for the long form.
Foreign LLC name reservation fee ($60)
- If your foreign LLC name is already taken, you will need to file an Application of Registration of Name.
- You can register a foreign LLC name online using the Connecticut Secretary of State website.
- Or, you can complete the Application for Reservation of Name and submit it by mail.
- The cost of a foreign LLC is $60.
Cost of plain document copies ($40)
- You must complete the Request for Copies form and submit it to the Connecticut Secretary of State.
- The cost for Connecticut plain documents is $40.
Steps to start an LLC in Connecticut
Choose a business name
When deciding on a Connecticut LLC name, you will need to consider a few things.
- A Connecticut LLC name must be unique and available for use.
- The LLC name must meet all Connecticut naming requirements.
- It is always a good idea to check for web domain availability. It keeps branding and marketing simple.
You will use the Connecticut Business Records Search to conduct a name search.
LLC name reservation fee
Connecticut does not require the reservation of an LLC name before formation.
You can reserve a Connecticut LLC name online or by mail for up to 120 days before formation.
The cost to reserve a company name in Connecticut is $60. An LLC name is good for up to 120 days. Connecticut does not require you to reserve an LLC name.
Appoint a Connecticut registered agent
In Connecticut, you must appoint a registered agent if you form an LLC.
The price for a Connecticut registered agent or service varies between $50 and $100 a year. The cost depends on the state and your LLC needs.
A registered agent in Connecticut is an individual or business entity that receives tax forms, legal documents, subpoenas, civil notices, service of process, and other official government correspondence on behalf of a sole proprietorship, corporation, or LLC.
The registered agent you choose must be a Connecticut resident or a registered agent service authorized to conduct business in the state.
- Starter Plan – $39 a year plus State Fees
- Pro Plan – $149 a year plus State Fees
- Premium Plan – $249 a year plus State Fees
ZenBusiness has a stand-alone registered agent service for Connecticut LLCs. The price is $99 per year.
- Total Out The Door Connecticut LLC Formation Service Package – $47 a month and includes:
- Connecticut State Fee
- Filing Service Fee
- Registered Agent
- Tax ID
- Annual Plan – $225 plus State Fees a year
- Economy – $79 plus $153 Connecticut filing fees
- Standard – $329 plus $153 state filing fees
- Express Gold – $349 plus $255 state filing fees
File Connecticut Certificate of Organization
You must file your Connecticut Certificate of Organization with the Secretary of State.
You can file the Certificate of Organization online using the SOS website.
Or, you can complete the Certificate of Organization form and submit it by mail or in person.
The LLC cost to file a Connecticut Certificate of Organization is $120.
Connecticut does offer an expedited 24-hour LLC service for an additional $50.
Connecticut Secretary of the State
Business Service Division,
PO Box 150470
Hartford, CT 06115
Connecticut Secretary of the State
Business Service Division
30 Trinity St.
Hartford, CT 06106
The Certificate of Organization form will ask for specific information about a Connecticut LLC.
- LLC name and address
- Registered agent information
- Manager(s) information
The fee in Connecticut for filing your LLC Certificate of Organization is $120.
Get a Connecticut LLC EIN
An Employer Identification Number, or EIN, can also be referred to as a Federal Employer Identification Number (FEIN) or Federal Tax ID Number (FTIN).
The IRS assigns the 9-digit EIN for no additional cost. The number acts as a Social Security Number for companies for income tax purposes.
If you convert a sole proprietorship into an LLC in Connecticut, you will need to apply for an EIN.
Applying for an EIN is a simple process online through the IRS website.
Business banking for a Connecticut LLC
You will open a business bank account that is separate from your personal accounts. It protects your personal assets and future credit scores.
Banks will require an LLC owner to submit a copy of the Certificate of Organization, an operating agreement, and an EIN before allowing business banking.
Business banking accounts are generally free, and do not have additional charges or fees.
Business attorney fees in Connecticut
A business attorney understands the ins and outs of LLC formation. When you hire experts, you also have someone available to handle any business-related issues that may arise.
In most cases, a business attorney in Connecticut will offer a consultation to a first-time client.
Professional services such as LegalZoom and Rocket Lawyer offer LLC formation packages that include comprehensive legal services.
On average, a business lawyer in Connecticut will cost $300 per hour.
LLC taxes in Connecticut
- LLCs in Connecticut are considered pass-through entities. It means that the members file personal tax returns rather than the LLC’s tax return.
- You must register for a seller’s permit when you sell physical products in Connecticut.
- The Connecticut state tax rate is 6.35%, and there is no max to the local and county rates.
- If you hire employees, you must register for Unemployment Insurance Tax through the Connecticut Department of Labor Tax and Benefits System.
- And you must enroll in Employment Withholding Tax with the Connecticut Department of Revenue Services.
- Hiring a tax expert can avoid missing deadlines, accruing penalties, and possible dissolution.
Business licenses and permits in Connecticut
The total cost for business licenses and permits in Connecticut will vary depending on where the LLC is located and the type of business it is.
You will use the Connecticut State Department of Consumer Protection site to locate the necessary licenses and permits.
A business licence in Connecticut varies between $20 to $3,000. The total cost of permits and licences will depend on where your LLC is, and the type of LLC.
Local government agencies in Connecticut will have different processes and rules for licenses. You will want to contact the office to inquire about the process, price, and office hours.
Some LLC documents in Connecticut will require a notarization from a notary public.
Government agencies typically have a notary public in the office if you cannot locate one.
According to Connecticut state law, a notary public can only charge a max of $5 per notorial act.
Employer obligations in Connecticut
- If you hire employees in Connecticut, you will have specific obligations.
- You must verify that all company employees are eligible to work in the US using Form I-9 from the USCIS Website.
- You will enroll in worker’s compensation insurance.
- You must report all new hires to the Connecticut Department of Labor.
- You can find the complete list of Connecticut employer obligations.
Benefits of a Connecticut LLC
- You make business banking easier when you form an LLC in Connecticut. Money lenders and financial institutions require a company owner to open separate business and personal bank accounts. It protects future liability.
- An LLC and a corporation have different compliance requirements. Incorporations answer to shareholders and stockholders when making business decisions.
- LLCs are pass-through entities in Connecticut. An LLC owner will file personal taxes rather than the LLC’s taxes.
- You can avoid further double-taxation when you form an LLC. Other business structures such as c-corporations typically are double-taxed, while LLCs are not.
- Connecticut has incentives that are available to LLCs. Corporate Business Tax Exemptions and Sales and Use Tax Exemptions are tax incentives for an LLC in the state.
How long does it take to register an LLC in Connecticut?
It will take Connecticut 1 to 4 business days to process an online LLC registration. If you file by mail, it will take 3 to 4 weeks.
Connecticut offers 24-hour expedited LLC services for an additional $50.
How do I dissolve my Connecticut LLC?
Are there publishing requirements for Connecticut LLCs?
Unlike Arizona and New York, Connecticut has no publishing requirements outside the annual report fee.
Does Connecticut have a franchise tax?
Connecticut does not have a biennial or annual franchise tax. However, Connecticut does have a $250 Business entity tax due when you submit your annual report fee.
Do I need a business operating agreement for my LLC in Connecticut?
Connecticut does not require an LLC to submit a business operating agreement to the Secretary of State. However, having one on file reduces the chances of future internal misunderstandings.
An operating agreement can be written or oral as long as it is in the LLC’s files.
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