When setting up an LLC in Connecticut, you must file legal documents to the state and pay filing fees.
Our team of business experts spent weeks browsing through the official documents on the Secretary of State’s website to provide you with the most accurate information about the cost you can expect when starting a Connecticut LLC.
Here is a detailed breakdown of the potential outlay of starting an LLC in this state and other expenses that you might need to cover.
Quick Summary
- The Connecticut LLC filing fee is $120, which covers submitting the Certificate of Organization.
- The state requires all Connecticut LLCs to file an annual report to update their information.
- If you want your Connecticut LLC to be in the right standing, you can follow all procedures and apply for a certificate of good standing at a fee.
How Much Does an LLC Cost in Connecticut?
An LLC in Connecticut costs $220. This fee covers your state filing costs ($120) and a tax permit ($100).
If you take on other certificates and documents, the price may be higher than this, as we'll discuss further.
Connecticut LLC Filing Fee
The Connecticut LLC filing fee is $120, paid to the Connecticut Secretary of State. This fee covers the registration of your Certificate of Organization.
Registering for this document is easy, and you may complete the process online at the Department of Economic and Community Development of the Secretary of State.
However, there are other ongoing LLC filing costs that you may incur during the process.
Connecticut Registered Agent Service Fee
To receive legal and business mail, a registered agent must have a mailing business address in Connecticut and be accessible throughout all regular business hours.
The registered agent will also handle the operating agreements and all Secretary of State's correspondence [1].
You have a few options for your Connecticut registered agent: you or another LLC member can act as the registered agent.
Also, you can appoint a reputable firm to act as your own registered agent for your limited liability company.
Depending on the agent service you select, the cost of a registered agent service might range from $50 per year to $300 or more.
But, if you need to subsequently amend your registered agent's information, such as to notify them of a name change or office move, you must fill out the Change of Agent form and pay a $50 state filing fee.
If you previously acted as your registered agent and want to hire a commercial company, you must also file for the change.
Connecticut Sales and Use Tax Permit
The state of Connecticut requires businesses to get a Sales and Use Tax Permit (sometimes known as a seller's permit) if they intend to participate in any of the following activities:
- Taxable service sales
- Rental or lease business
- Hospitality management (lodging and motels)
This license costs a standard $100 fee and is obtained through the Connecticut Department of Revenue Services. According to state laws, you cannot lawfully do business in Connecticut without it.
Other LLC Filing Costs
Here's a breakdown of other filing costs of creating an LLC in Connecticut.
1. Name Reservation
Name reservation in Connecticut costs $60.
It is not mandatory to reserve your business name before registration, but doing so will prevent anybody else from using it between the time you settle on the name and the time you register your incorporation certificate.
You must submit an Application for a Reservation of Name, or you may use a Company Name Reservation Service to have it done for you.
You should always run a Connecticut LLC name search to guarantee the name you choose is available, regardless of whether you secure your business name or not.
2. Annual Reports
You must submit an annual report to Connecticut to maintain the information on your LLC current. To continue functioning, your Connecticut LLC must maintain good standing and be in compliance with all applicable laws.
The details needed to submit your annual report include your name, the names and mailing addresses of your partners, your LLC's legal entity name, your LLC's Connecticut business ID number, and your LLC's official business location.
Verify the data on the Annual Report, submit it to the Connecticut Secretary of State, and pay the Annual Report fees.
The annual cost of the Connecticut LLC Annual Report is $80. Throughout the duration of your LLC, this charge is paid yearly.
3. Certificate of Organization
The next step in starting a Connecticut LLC is to submit a Certificate of Organization to the state before your business entity is formally recognized by the SOS.
The Certificate of Organization will cost you $120 whether you submit it remotely, by mail, or in person.
It's a good thing that this is a one-time cost incurred during the initial LLC formation process. Unless the original application is rejected, LLC owners won't be required to pay it again while your firm is in operation.
Your application should be handled within a week; however, it may take longer during periods of high filing volume.
The average runtime for online files is two to three business days. The usual turnaround time for submissions filed in hard copies is up to 10 business days.
However, if you need it sooner, you can apply for expedited processing, which costs $50 and takes 24 hours to complete. Note that this service is available for hard copies only.
4. DBA Name
You can submit an Assumed Name Certificate if you decide to go by a name other than your legal business name [2]. The price for this in Connecticut varies depending on the county your LLC is operating.
This document only applies to one county, so if you have LLCs in multiple counties, you'll need to use different DBAs.
We recommend speaking with your county clerk for further details on business name filing and costs.
5. Connecticut Certificate of Good Standing
A Connecticut LLC certificate of good standing demonstrates that your company is conducting itself in strict accordance with state regulations. This certificate costs $50.
When creating an LLC bank account, financial institutions frequently demand this document in addition to the employer identification number.
6. LLC Taxes
If you set your LLC to be taxed like a sole proprietorship, then you’re subject to pass-through taxation.
This means you will be required to pay taxes on your company revenue at the individual tax rates, typically between 3% and 6.9%, based on your income bracket.
Additionally, if your LLC is taxed as a corporation, you are obligated to pay Connecticut's 7.5% corporate income tax on your business's turnover.
7. Connecticut Certified Documents
Connecticut LLCs can quickly get copies of every document related to establishing their business on the Secretary of State's website.
Nevertheless, copies of certified documents, like an LLC operating agreement, are not free. Typically, per document is $40 for a simple, plain paper and $55 for a state-certified copy.
Also, note that some legal papers' pricing may vary in Connecticut. For instance, if you want to register a foreign LLC, you'll need a certified copy of the long-form Connecticut Certificate of Existence, which costs $100.
Foreign Connecticut LLC Registration
This foreign Connecticut LLC filing fee only applies to entities based outside of Connecticut but wishing to operate there.
It costs $120 to file a foreign registration statement online or on paper.
If approved by the Secretary of State, this filing is identical to the Certificate of Organization. You only need to submit it once and incur the one-time application fee.
FAQs
Is Connecticut Ideal For an LLC?
Yes, Connecticut is ideal for an LLC. In addition to having rapid approval timeframes and competent staff at the Secretary of State if you have any issues, Connecticut doesn't charge a general state business licensing cost.
How Much Does a Connecticut LLC Annually?
A Connecticut LLC costs $80 annually. This fee covers the annual report filing, which you need to keep your business in the right standing with the state. Also, this amount may be more if you hire a registered agent service as you'll need to pay their annual service fee.
How Long Does It Take To Incororate My Connecticut LLC?
It takes 2 to 4 days to incorporate your Connecticut LLC online. If you file by mail, it will take between 3 to 4 weeks, including the mailing time.
Do You Need Professional Help with Your LLC in Connecticut?
Setting up a limited liability company in Connecticut requires a lot of effort. But if you're ready to take on most of the administrative load, it won't necessarily be pricey.
However, if you don’t want to risk making costly mistakes, your safest bet is to get expert assistance from the best LLC formation services in Connecticut.
These firms provide relatively affordable and extensive LLC creation services to fit your company's needs.
They also offer the experience and knowledge to guarantee you receive the best service possible, from document filing to continuous compliance monitoring.
References:
- https://portal.ct.gov/SOTS/Business-Services/Frequently-Asked-Questions
- https://aofund.org/resource/doing-business-as-all-about-dbas/
