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Connecticut LLC · Complete Guide · Verified June 2026

How to Start an LLC in Connecticut (2026)

Connecticut is a solid, straightforward home-state pick — $120 to file, a fixed January–March annual filing window instead of a floating anniversary date, and no franchise tax. This guide walks all 8 steps, with a cost calculator and the details other guides get wrong.

Ahmad Adil Written & verified by Ahmad Adil, LLC School·Updated June 2026
Quick Answer

It costs $120 to file Connecticut's Certificate of Organization, with online approval typically in 2–3 business days. There's no franchise tax — instead, every LLC files an Annual Report for $80 during a fixed window of January 1 – March 31 each year, unlike most states which use an anniversary-based date. Connecticut's personal income tax is graduated, up to 6.99%, and an elective Pass-Through Entity Tax offers a SALT-cap workaround for higher earners.

Connecticut LLC — Fast Facts
Filing fee
$120
Processing
2–3 business days
Annual Report
$80/yr
Report window
Jan 1 – Mar 31
Franchise tax
None
State income tax
Graduated to 6.99%
Formation doc
Certificate of Org.

Why Form an LLC in Connecticut?

Connecticut is a dependable, if not flashy, home-state pick — the fee structure is predictable and the compliance calendar is unusually easy to remember:

  • Fast online approval — filing your Certificate of Organization online typically takes just 2–3 business days.
  • No franchise tax — Connecticut's old $250 biennial Business Entity Tax was repealed in 2020; the only recurring state fee is the $80 Annual Report.
  • A fixed, easy-to-remember filing window — the Annual Report is always due January 1 – March 31, unlike most states' floating anniversary-month deadlines.
  • No local income taxes — no Connecticut city or town adds its own income tax on top of the state rate.
  • Statewide sales tax rate — 6.35% everywhere in Connecticut, with no home-rule city layer to navigate.

Watch for outdated "$250 Business Entity Tax" adviceConnecticut's biennial $250 Business Entity Tax was fully repealed effective for tax years starting January 1, 2020. If a guide (or an old bookmark) tells you every Connecticut LLC owes $250 every two years, it's out of date — that cost no longer exists. See Step 8 for the current picture.

Connecticut LLC Cost Calculator

Toggle the options to see your total first-year cost:

Connecticut LLC Cost Calculator
First-year formation + recurring cost
Certificate of Organization RequiredOne-time state filing fee$120
Annual Report (first year)Due Jan 1–Mar 31 — often not a Year 1 cost$80/yr
Registered agent serviceOptional — free if you act as your own CT agent$125/yr
Expedited processingOptional — 24-hour turnaround instead of 2–3 days$50
First-year total
$120
formation only, typically
Ongoing per year
$0
based on selections

Estimates only. Registered agent pricing varies by provider. Your first Annual Report isn't due until the January–March window after your first full year, so most LLCs' actual first-year cash outlay is just the $120 filing fee. Not legal or tax advice.

Connecticut LLC formation paperwork on a desk with a New England town visible through the window

The 8 Steps to Start Your Connecticut LLC

Here's the full path from name to taxes. Each step has its own detailed guide with a tool to make it easier — the filing that legally creates your company is Step 3: Certificate of Organization:

1Name Your LLCPick a compliant, available name and check it with the state.Step 1 → 2Registered AgentAppoint a Connecticut agent to receive legal documents.Step 2 → 3Certificate of OrganizationFile the $120 form that legally creates your LLC.Step 3 → 4Operating AgreementSet ownership and management rules (recommended).Step 4 → 5Get an EINYour free federal tax ID from the IRS.Step 5 → 6Annual ReportFile the $80 report every year between Jan 1 and Mar 31.Step 6 → 7Business LicensesSales and Use Tax Permit and any industry-specific licenses.Step 7 → 8LLC TaxesPass-through federal + Connecticut's graduated state tax.Step 8 →

Connecticut's Graduated State Income Tax

Connecticut uses a graduated income tax with seven brackets running from 2% to 6.99%. As a default pass-through LLC, your share of profits flows to your personal return, taxed federally and at Connecticut's bracket rates; there's no separate entity-level income tax beyond the flat $80 Annual Report. Connecticut also offers an elective Pass-Through Entity Tax that can help higher earners work around the federal SALT deduction cap. We break the full picture down, with an estimator, in Step 8: Connecticut LLC Taxes.

Connecticut's Annual Report window is fixed, not anniversary-basedUnlike most states, where your annual filing is due during your formation anniversary month, Connecticut's LLC Annual Report is always due during the same window every year — January 1 through March 31 — regardless of when your LLC was formed. Form your LLC in November and your first report still isn't due until the following January–March window. See Step 6 for the full timing breakdown.

Ahmad Adil's Take: Connecticut is a genuinely easy state to stay compliant in — a fixed calendar window beats trying to remember an anniversary date, and the repeal of the old Business Entity Tax removed the one recurring cost that used to catch owners off guard. The graduated income tax is higher than some neighboring states at the top end, but most small LLC owners land well below the top brackets. Mark January 1 on your calendar every year, and Connecticut compliance stays simple.
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Frequently Asked Questions

Connecticut LLC — FAQ

How much does it cost to start an LLC in Connecticut?
It costs $120 to file the Certificate of Organization. After that, every LLC pays an $80 Annual Report each year, due between January 1 and March 31.
Does Connecticut have a franchise tax for LLCs?
No — Connecticut does not impose a franchise tax. The old $250 biennial Business Entity Tax was repealed effective 2020; the only recurring state filing is the $80 Annual Report.
How long does it take to form a Connecticut LLC?
Typically 2–3 business days for online filings. Mail filings take longer, roughly 1–2 weeks. Expedited processing (+$50) provides 24-hour turnaround.
When is Connecticut's Annual Report due?
Every year between January 1 and March 31 — a fixed window, not tied to your LLC's formation anniversary. Your first report isn't due until the year after formation.
What is Connecticut's state income tax rate?
A graduated rate across seven brackets, from 2% to 6.99%. Connecticut doesn't have a standard deduction; instead it uses a phasing-out personal exemption credit.
Can a non-resident form a Connecticut LLC?
Yes — there's no residency requirement. But if you live and operate elsewhere, you'll typically also register as a foreign LLC in your home state and pay that state's taxes on your share of the profits.
Do I need to reserve my Connecticut LLC name before filing?
No — your name is checked when your Certificate of Organization is filed. A separate $60 name reservation is available if you want to hold a name for 120 days before filing, but it's entirely optional.
Ahmad Adil, founder of LLC School
About the Author
Ahmad Adil

Ahmad Adil is the founder and CEO of LLC School. The figures here — the $120 Certificate of Organization fee, the $80 Annual Report, and Connecticut's graduated state income tax — reflect current Connecticut Secretary of the State and Department of Revenue Services guidance. This is educational content, not legal or tax advice.

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