LLC Cost in Connecticut – How Much to Pay for an LLC

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Perhaps you are hoping to form an LLC in CT. People assume how to start an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Connecticut.

Connecticut LLC Cost of Filing

Here are the costs involved in forming an LLC in Connecticut.

Cost of Filing Formation Certificates

The Connecticut Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Connecticut Secretary of State

Connecticut Domestic LLC

  • Online filing costs $120.
  • By mail: Fill out the application form, and send it to Business Services Division Connecticut Secretary of the State P.O. Box 150470 Hartford, CT 06115-0470, costs $120.
  • In person: Fill out the application form, and send it to Business Services Division Connecticut Secretary of the State 165 Capitol Avenue, Suite 1000 Hartford, CT 06106, costs $120.
  • Annual Report filing costs $80.

Connecticut Foreign LLC

  • Online filing costs $120.
  • By mail: Fill out the application form, and send it to Business Services Division Connecticut Secretary of the State P.O. Box 150470 Hartford, CT 06115-0470, costs $120.
  • In person: Fill out the application form, and send it to Business Services Division Connecticut Secretary of the State 165 Capitol Avenue, Suite 1000 Hartford, CT 06106, costs $120.
  • Annual Report filing costs $80.

The official Connecticut Secretary of State office provides up-to-date information about the overall cost of forming a domestic and foreign LLC in Connecticut.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

Connecticut LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in Connecticut, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

LLC Service

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Business Permits and Licenses 

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Connecticut Department of Revenue for regulatory boards or agencies requiring licensing. 

Business taxes

Apart from the filing of the Annual Report, the Connecticut LLCs are also subject to state tax filing obligations. 

Sales Tax

The State imposes a Sales Tax at the rate of 6.35%. Visit the Connecticut Government database to know more about managing your sales tax. 

Withholding Tax

The taxable income varies among counties from 3% to 7%. If you are employing resident employees, you are required to withhold Connecticut tax. Visit the Connecticut Government database to know more about managing your withholding tax.

Corporation Business Tax

If your LLC conducts business in Connecticut, you are also required to file Corporation Business Tax Return. Visit the Connecticut Secretary of State website to know more about your eligibility to pay the Corporation Business Tax.

Property Tax

Apart from Income and Sales tax, property tax in Connecticut is another significant matter. With rising property tax rates, the effective rate is set at 1.7% of the property value. For conducting any business in the State via an LLC, you should register yourself with the Connecticut Department of Revenue Services (DRS) Taxpayer Service Centre (TSC).

Comparison with the Neighboring States

Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Connecticut, check out the table below:

StatesConnecticutMassachusettsRhode IslandNew YorkPennsylvania
Online filing fee$120$500$150$200$125
LLC Annual fee$80$500$50$9$25
Name reservation fee$60$30$50$20$70
Sales Tax6.35%6.25%7%8.875%6%

The Limited Liability Companies (LLCs) in Connecticut are not expensive, though it mandates specific compliances. With this hybrid business structure and knowledge about the LLC Costs in Connecticut, the business owners can explore different sectors and enjoy access to highly valued properties and services offered in the State.

Other Costs

How Much Does It Cost to Maintain an LLC in Connecticut

The first step to creating an LLC in Connecticut is choosing a name. If you do not, check with the state to make sure the name is available. If not, it is a good idea to hire a professional to do this for you. After you have chosen a name, you will need to file the necessary paperwork and pay the required fee. In most cases, these fees are one-time and do not include taxes.

The next step is filing an annual report with the Secretary of State. This report will cost you around $20 and is due the month of the business’s anniversary. The annual report must be filed online and includes a few important pieces of information. The information in the report will include the official business name, its Connecticut business ID number, and the names and addresses of its managers. It is crucial to keep these documents updated, as they will be used by the state when calculating taxes and reporting to the government.

The annual report, also known as a Statement of Information, is a necessary step in the formation and maintenance of your business. It is a legal document that is vital to the company’s good standing and liability protection. The state requires that all business owners have a registered agent. The cost of a registered agent in Connecticut is $119 per year. The initial year of service is free. After the first year, the service costs $119 per year.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

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