Connecticut LLCs cost $120 to form and $80/year for annual reports. Annual report due on anniversary date of formation. Connecticut Secretary of State processes online filings in 5-7 business days. Moderate costs and efficient processing make CT competitive in Northeast despite high taxes.
Connecticut LLC Formation
Connecticut Secretary of State processes LLC formations. $120 filing fee.
Standard processing: 5-7 business days. Expedited processing: +$50 (1-2 business days). Same-day: +$100 (rare).
Name Requirements
Must include "Limited Liability Company", "L.L.C.", or "LLC". Connecticut accepts abbreviations.
Restricted words: Bank, Trust, Insurance, Attorney. Connecticut rejects 16% of names for similarity conflicts.
Name Availability Search
Search Connecticut Business Registry at business.ct.gov. Free real-time search.
Name reservation: $60, holds 120 days. Can be renewed once for another $60 (total 240 days max).
Formation Process
File Certificate of Organization with Connecticut Secretary of State. Online filing at portal.ct.gov/SOTS or mail to Hartford.
Required: LLC name, registered agent with CT address, principal office address, management structure, organizer information.
Registered Agent Requirement
Must have Connecticut registered agent with physical CT address (no PO boxes). Individual or entity.
Can use yourself if you have CT address. Professional registered agent: $150-275/year.
Annual Report
Due during anniversary month of formation. $80 fee. Example: LLC formed March 2024 files anytime March 1-31, 2025.
Flexible deadline (any day of month) unlike most states with specific date. Late filing: $50 penalty.
Anniversary Month Flexibility
Connecticut gives full month to file annual report. Formed March 15? File anytime March 1-31.
More forgiving than states with exact-date deadlines. Reduces late filing penalties from procrastination.
CT vs Other Northeast States
Connecticut $120 + $80/year vs New York $200 + $9/2yr: NY cheaper (unusual for NY to be cheaper).
Connecticut $120 + $80/year vs Massachusetts $500 + $500/year: CT saves $920/year (huge difference).
New York City Access
Connecticut LLCs (especially Fairfield County) access NYC market easily. Lower cost than NY LLC but NYC proximity.
Many consultants, professional services choose CT over NY for cost savings while maintaining NYC client base.
Tax Considerations
Connecticut income tax: 3-6.99% graduated brackets. Pass-through taxation like all LLCs.
Business Entity Tax (BET): $250 minimum for LLCs with gross income $1M+. Adds unexpected cost for profitable businesses.
Business Entity Tax (BET)
Connecticut charges BET on gross receipts for businesses above $1M. $250 minimum, scales up to 0.31% for larger businesses.
Surprise tax many founders miss. Calculate BET when projecting costs for profitable Connecticut LLCs.
Operating Agreement
Not required by CT law but HIGHLY RECOMMENDED for all LLCs.
Connecticut courts enforce Operating Agreement terms. Worth legal review for multi-member LLCs.
Foreign LLC
Out-of-state LLCs doing business in Connecticut must register as foreign LLC. $120 filing fee.
Annual report still required: $80/year during anniversary month of foreign registration.
When Foreign Registration Required
Maintaining office in CT, employing CT workers, owning CT real estate, regularly conducting business in state.
Online sales to CT customers typically don't require foreign registration (no physical presence).
Common Mistakes
Missing BET filing: Separate from annual report. Businesses over $1M must file BET by April 15 (different deadline).
Forgetting month-end deadline: Anniversary month means last day of month. Filing April 32 = late (no such date).
Underestimating taxes: CT has high property taxes, BET, and income tax. Total tax burden higher than neighboring states.
When CT Makes Sense
Choose Connecticut LLC if: NYC market access important but want lower cost than NY, insurance/finance industry (Hartford ecosystem), Fairfield County location, moderate annual costs acceptable.
Best for: Insurance companies (Hartford is insurance capital), financial services, professional services serving NYC, businesses in Fairfield County.
Consider alternatives if: Very cost-sensitive (NH has no income tax, lower fees), no need for NYC proximity, revenue under $500K (better deals elsewhere).
Insurance & Finance Hub
Hartford known as "Insurance Capital of the World." Aetna, Hartford Financial, Travelers all headquartered there.
Strong insurance and financial services ecosystem. Connecticut LLC makes sense for these industries despite higher taxes.
Trademark Lens verifies Connecticut LLC name availability before $120-180 formation costs.