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

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.

If you’re looking to start a business in Connecticut, you might be wondering how much it costs to maintain an LLC. There are several different costs involved. The first is the filing fee. The Connecticut Secretary of State charges $20 for LLC filings. Another expense is the annual report. The state requires you to file this report within a month after registering your LLC.

Lastly, an annual report fee is required for each Connecticut LLC. This fee is due on the last day of the anniversary month. Fortunately, Connecticut allows you to pay the fee online, although there’s a convenience fee of $2.50. This fee covers the administrative costs of maintaining an LLC in Connecticut.

The annual report fee is $20. The annual report must be filed with the Secretary of State by the end of the anniversary month. The report must include the official business name, Connecticut business ID number, business address, name of LLC managers and more. The Connecticut Secretary of State website will provide you with a link to file the form online.

The state of Connecticut requires all LLCs to appoint a registered agent. The registered agent serves as the point of contact between the state and the LLC. He or she also accepts service of process in case of a lawsuit. The registered agent is also required to sign the Connecticut Certificate of Organization, which must be filed with the Secretary of State.

The operating agreement is a vital document for any LLC. It details how the business will function and who is allowed to do what. It can help you prepare for any unforeseen events and can help protect your limited liability status. An operating agreement can also help show that your LLC is a separate business entity.

Connecticut LLCs must file annual reports with the Connecticut Secretary of State. The filing fee for an annual report is $20. Additionally, a Connecticut LLC must pay the same taxes as a corporation. Fortunately, there are a few different options to meet these expenses. Alternatively, you can hire a registered agent service to help you keep up with the filing requirements.

Another expense involved in LLC formation is the name. The name of your LLC must be distinctive enough to distinguish it from other entities. The Connecticut Secretary of State maintains a database for businesses and has a name reservation system. If a name that you’re interested in is not available, you can reserve it for up to 120 days.

Another expense involved in maintaining an LLC in Connecticut is the cost of maintaining a registered agent. An agent will be your point of contact with the state and forward important documents to your company. Some formation services even include a year of registered agent service free of charge. However, other companies charge an additional fee. An average registered agent fee is $150 per year, but the rate can vary depending on the company.

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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