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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$99 per year

  • Standalone registered agent service

  • Take you through all steps

  • LLC formation package available

$125 per year

  • 1 year free service along with LLC formation package

  • Fast service

  • Flat rate, no hidden cost

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

To maintain an LLC in Connecticut you will need to pay an annual fee of $80 along with Sales tax at the rate of 6.35%, Withholding tax, Corporation tax and federal taxes.

How much does it cost to maintain an LLC in Connecticut? There are several steps that need to be completed before an LLC can legally operate. Filing the appropriate paperwork with the Secretary of State and paying the required fee will start the process. In order to change your registered agent, you will need to file an amended form with the Secretary of State. This form is available online or on paper and will cost you $120. You can expedite this process by paying an additional $50 for 24-hour expedited service.

Every year, LLCs must file an annual report with the Secretary of State. This filing costs $20 and must be filed online by the end of the month in which the LLC’s anniversary falls. The annual report includes information on the official business name, Connecticut business ID number, address, members and managers, and more. This process may take a few days, but it’s worth the time. When considering the cost of an LLC in Connecticut, remember to budget for this.

Forming an LLC in Connecticut doesn’t cost a lot, but there are some costs to consider as well. Despite the state’s relatively low cost, an LLC will still require an industry-specific license, professional license, and other permits. These costs can add up quickly, so it’s important to understand these expenses before hiring a service to form and maintain an LLC in Connecticut. You can also find affordable business formation services that will handle the Certificate of Organization filing and registered agent services for you.

Another expense to consider is whether or not you need to invest in a business bank account. If you plan to use your business bank account to keep track of all your finances, an LLC can help with taxation. It’s also important to keep detailed records of all your financial transactions, including any income and expenses from contractors or employees. Then there’s the cost of keeping records and information about employees.

There are also fees associated with registering your business name. The Secretary of State requires that all LLCs have a registered agent. The state website has a search tool you can use to find the best possible name for your business. If you’re still unsure, you can use a different name or pay an additional fee of $60 to reserve a name. During the early stages, name reservation is an important expense to consider.

In Connecticut, LLCs need one or more managers and members. The owners of the LLC must sign an operating agreement and address the registered agent with the state. This document lays out the details of the business, identifying who owns what, and who manages the business. Creating an operating agreement is an important step in maintaining your LLC and showing that it is separate from a company. If you’re unsure of your next steps, try a free trial period with ZenBusiness. You can file your documents online.

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.

In Conclusion

The cost of Connecticut is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

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