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Connecticut · 2026 · 36 steps · official links

How to start a business in Connecticut

Every step to open an LLC in Connecticut and get ready to hire, in order, with the official state page for each one. Agencies you'll deal with: Secretary of the State (Business Services) · Department of Revenue Services (DRS) · Department of Labor (CTDOL) · CT Paid Leave Authority · Workers' Compensation Commission · Commission on Human Rights and Opportunities (CHRO).

LLC filing fee
$120
State sales tax
6.35%
Seller's permit
$100
Out-of-state sales threshold
$100,000 and 200 sales
Last verified
October 27, 2026

This is the most common path: a new LLC, general business, paying W-2 employees and 1099 contractors. Adding a location, forming a corporation, or in a licensed industry? Customize it and check off steps as you go.

Customize this checklist

Popular Connecticut business types:

Step 1

Set up the business with the state

Do this first. The state tax and payroll accounts ask for your registration details.

Get a federal EIN

Apply free on the IRS website and get the number immediately. You'll need it for the state tax registration, a business bank account, and payroll. Opening a new location? You already have one; the same EIN works in every state.

FederalFreeIRS: Get an EIN

Sign an operating agreement

This internal document sets out who owns what, how decisions get made, and what happens if an owner leaves. It isn't filed with the state, but banks often ask for it, and it helps protect your liability shield. Single-owner LLCs need one too.

Every state

Open a business bank account

Bring your EIN letter, filed formation documents, and operating agreement or bylaws. Keeping business and personal money separate is one of the main things that protects your personal assets.

Every state

Check industry licenses and permits

Many businesses need a license or permit before opening, separate from registering the company. Check three levels: the state licensing board for your field, your city or county, and any federal agency that regulates your industry.

  • Trades and construction: general contractors, electricians, plumbers, HVAC and roofers usually need a state or local license, and often a bond
  • Personal services: salons, barbers, nail and esthetics shops need a shop license plus licensed staff; massage and tattoo studios are licensed too
  • Professional services: accounting, engineering, architecture, law, real estate and insurance require state licenses for the people and sometimes the firm
  • Child care, elder care and home care need a state facility or agency license and background checks
  • Retail with restricted products: alcohol, tobacco and vape, cannabis, firearms (federal FFL), pawn and secondhand dealers
  • Auto, transport and logistics: auto dealers and repair shops, towing, movers, and trucks that need a USDOT number
  • Money and finance: lenders, mortgage brokers, debt collectors and money transmitters are licensed by the state, often through NMLS
  • Local permits for almost everyone: city business license or tax registration, zoning or home occupation permit, sign permit and fire inspection

Decide on S corp tax treatment (optional)

If you want S corp taxation, file IRS Form 2553. The deadline is tight: generally within 2 months and 15 days after the start of the tax year you want it to apply. See Business basics for when it makes sense.

Form your LLC with the state

File Articles of Organization (or the state's equivalent) online through Secretary of the State online business filings (business.ct.gov).

Name a Connecticut statutory agent

The LLC certificate of organization fee includes appointing the statutory agent. Changing the agent or the agent's address costs $50.

CT

Register a trade name (DBA) if you use a different name

Trade names are not registered with the Secretary of the State. They are filed with the Town Clerk where the business operates.

CTIf it applies

Know Connecticut's formation rules

The $250 corporation fee includes the minimum franchise tax for up to 20,000 authorized shares. The $385 foreign corporation fee includes a $285 license fee.

CT
Step 2

Register for state taxes

Register with Department of Revenue Services (DRS)

Register with DRS online through myconneCT to get a Connecticut tax registration number. A Sales and Use Tax Permit costs $100 and each location needs its own permit.

  • Employees complete Form CT-W4 for state withholding
  • 6.35% general rate with no local sales taxes. Some items have special rates, such as 7.35% on meals and 1% on computer and data processing services.

Check local taxes and business licenses

No local sales taxes. Trade names are filed with the town clerk.

CT
Step 5

Collect sales tax

Applies if you sell products, or services this state taxes. Most medical care is exempt. See Business basics for sales tax.

Register to collect sales tax

Connecticut calls it a Sales and Use Tax Permit. Register with the Connecticut Department of Revenue Services (DRS) through myconneCT before you make your first taxable sale in Connecticut. You'll collect tax from customers and send it to the state.

  • State rate: 6.35%
  • Local taxes: No local sales taxes.
  • Permit expires every two years and DRS mails a new one at no charge if you have no unpaid tax or unfiled returns. You need a separate permit for each location.
  • Yes, many services are taxed, including business consulting, janitorial, landscaping, nail and spa services, and website hosting. Digital goods are taxed at 6.35%, and canned software or computer services bought for business use are taxed at 1%.

Buy items you resell tax-free with a resale certificate

Give your supplier Connecticut Sales and Use Tax Resale Certificate so you don't pay tax on inventory you'll resell. The buyer fills it out and gives it to the seller; a blanket certificate must be renewed at least every three years. Out-of-state buyers without a CT permit can list their home-state ID or FEIN. Keep certificates your own customers give you, too.

  • Accepts the MTC Uniform Sales and Use Tax Resale Certificate
CTIf it applies

Selling into Connecticut from another state? Watch the threshold

Out-of-state sellers must register once sales into Connecticut pass $100,000 and 200 transactions (12-month period ending the prior September 30), even with no office here.

  • Both tests must be met (gross receipts of $100,000 or more AND 200 or more retail sales). Thresholds dropped from $250,000 on July 1, 2019.
  • Marketplace facilitators that facilitated $250,000 or more in retail sales in the prior 12 months (Oct 1 to Sep 30) must register and collect for third-party sellers. Sellers who sell only through a collecting facilitator still register, check a box saying so, and file annually.

Note this Connecticut sales tax rule

Higher special rates apply: 7.35% on meals and 7.75% on luxury items such as jewelry over $5,000 or clothing over $1,000.

CT
Step 6

Before your first payroll

Applies once you pay W-2 employees who work in this state.

Complete Form I-9 and W-4 for each hire

Form I-9 is never mailed to the government. You keep it in your own files and show it only if ICE or the Department of Labor asks for an inspection.

  • The employee completes Section 1 by their first day of work
  • You review their original documents and complete Section 2 within 3 business days of the start date
  • Keep it for 3 years after the hire date or 1 year after employment ends, whichever is later
  • Store I-9s together, separate from personnel files, so an inspection doesn't expose other records
  • Remote hire? Have an authorized representative check documents in person, or, if you use E-Verify, use the DHS remote video inspection option
  • Also collect a federal W-4 for withholding

Post federal workplace notices

Federal posters (minimum wage, EEO, FMLA if you have 50+ employees, and others) go alongside the state ones.

Register for unemployment insurance with Department of Labor (CTDOL)

Register once you pay wages to employees working in Connecticut. Reports and payments are usually quarterly.

  • 2026 new employer rate: 1.9%
  • Taxable wage base: $27,000
  • 2026 rates range from 1.1% to 9.9%, including a 1.0% fund solvency rate. The wage base rose from $26,100 in 2025.

Set up the state paid leave or disability program

CT Paid Leave is funded by employees at 0.5% of wages, up to the Social Security wage base. Employers with 1 or more Connecticut employees must register, withhold, and remit contributions. The rate stays 0.5% for 2026.

  • Employers withhold 0.5% from employee pay; employees cannot opt out
  • Register in the CT Paid Leave Business Registration Portal with a CT.gov account
  • File a report every quarter you are registered, even with zero wages
  • 2026 maximum weekly benefit: $1,016.40; 2027: $1,048.80 (60 times the minimum wage)
  • Self-employed people may opt in but are not required to

Buy workers' compensation insurance

Required at 1 or more employees, including part-time and seasonal. Sole proprietors are excluded. LLC members, partners, and corporate officers are covered unless they file an exclusion with the Workers' Compensation Commission. Household workers under 26 hours per week are exempt. Penalties can reach $50,000. No state fund.

CT

Report each new hire

Report all new hires by mailing or faxing the employee's CT-W4. Rehires separated 60 days or more count as new hires.

CTWithin 20 days (14 days if reporting electronically by Secure FTP)Connecticut: New hire reporting

Follow Connecticut pay timing rules

Connecticut's wage payment rules:

  • Pay frequency: Weekly on a regular payday, or every two weeks. The pay period must end no more than 8 days before payday. Less frequent pay needs Labor Commissioner approval.
  • Final pay: Fired: by the next business day. Quit or laid off: by the next regular payday.
  • Overtime: 1.5x for hours over 40 per week. No daily overtime.
  • Tell employees in writing at hire their pay rate, hours, and pay schedule. Keep time and wage records for 3 years.

Pay at least Connecticut minimum wage

$16.94 an hour.

  • Tipped employees: $6.38 (wait staff) or $8.23 (bartenders); tips must bring pay to $16.94
  • Coming up: $17.48 on January 1, 2027

Set up required sick leave

Paid sick leave covers employers with 11 or more Connecticut employees in 2026 and 1 or more starting January 1, 2027. Employees earn 1 hour per 30 hours worked, up to 40 hours per year.

  • Jan 1, 2026: employers with 11+ employees
  • Jan 1, 2027: employers with 1+ employee
  • Up to 40 unused hours carry over; use capped at 40 hours per year
  • Employees can use leave after 120 days of employment
  • Post English and Spanish notices and give written notice at hire

Register for MyCTSavings or certify an exemption

Employers with 5 or more Connecticut employees, each paid at least $5,000 the prior year, must offer a retirement plan or register for MyCTSavings. Employers that offer a qualified plan must certify an exemption. New businesses are exempt until they have existed for the full current and prior year.

Provide required harassment prevention training

Employers with 3 or more employees must give all employees 2 hours of interactive sexual harassment training within 6 months of hire. Smaller employers must train supervisors. Post a notice and email it to employees within 3 months of hire. CHRO offers a free online training.

CT

Post Connecticut workplace notices

Display the state's required labor law posters where employees can see them, along with the federal posters. Workers' comp notices come from your carrier.

Register for CT Paid Leave before your first payroll

Every employer with 1 or more Connecticut employees must register with the CT Paid Leave Authority, withhold 0.5% from employee pay, and file quarterly reports.

Check MyCTSavings once you reach 5 employees

Employers with 5 or more Connecticut employees must offer a retirement plan or register with MyCTSavings. Employers with their own plan must certify the exemption.

Step 7

Paying 1099 contractors

Collect a W-9 before the first payment

The W-9 gives you the contractor's legal name and tax ID for their 1099. Check the classification first: if you control how and when they work, they may legally be an employee.

Send Form 1099-NEC to contractors

File with the IRS and send the contractor a copy by January 31. For payments made in 2026 and later, the reporting threshold is $2,000 per contractor per year (it was $600 before).

FederalDue Jan 31
Step 8

Stay in good standing

Recurring deadlines. Put these on your calendar now.

Skip the FinCEN BOI report (U.S. companies are exempt)

FinCEN's final rule, effective August 14, 2026, permanently exempts companies formed in the U.S. from beneficial ownership reporting. Ignore letters or emails demanding a BOI filing fee; they're a common scam. Only companies formed outside the U.S. still file.

Get ready for sick leave on Jan 1, 2027

Starting January 1, 2027, paid sick leave covers employers with even 1 Connecticut employee. Set up accrual tracking and post the required notices.

File the Annual Report

Keeps your business in good standing with the state. Missing it can lead to penalties or dissolution.

CTLLCs file online each year between January 1 and March 31$80 (LLC); $150 (domestic stock corporation)Connecticut: Annual report

File quarterly unemployment reports and withholding returns

File unemployment wage reports each quarter and state withholding returns on the schedule you're assigned (if the state has income tax), plus the annual W-2 reconciliation.

CTQuarterly

File sales tax returns on time

DRS assigns monthly, quarterly, or annual filing on Form OS-114 through myconneCT. Returns are due the last day of the month after the period ends, even if you had no sales. File a zero return if you had no sales; skipping it can bring penalties.

CT

Deadline calendar

Recurring dates for Connecticut and federal filings. A payroll service handles most payroll lines, but you should know they're happening.

WhenWhatFiled with
Jan 1Minimum wage rises to $17.48 (2027); sick leave expands to 1+ employee (2027)Connecticut
Jan 1 - Mar 31LLC annual report ($80)Connecticut
Apr 30, Jul 31, Oct 31, Jan 31Quarterly UI and CT Paid Leave wage reportsConnecticut
Last day of month after periodSales and use tax return (OS-114) through myconneCTConnecticut
Jan 31W-2s to employeesConnecticut
Assigned scheduleSales tax return (file a zero return if no sales)Connecticut
Jan 31W-2s to employees and SSA (with W-3); Form 940; 4th-quarter Form 941IRS / SSA
Jan 311099-NEC to contractors and IRSIRS
15th monthlyFederal payroll tax deposit (monthly depositors)IRS
Apr 30 · Jul 31 · Oct 31Form 941 for the quarterIRS
Jul 31Form 5500 or 5500-SF, if you sponsor a 401(k) (Oct 15 with Form 5558 extension)DOL (EFAST2)

Last verified: October 27, 2026

Common questions

How much does it cost to form an LLC in Connecticut?

The Connecticut state filing fee for an LLC is $120. That's the fee to form your LLC with the state. Expect other costs too, such as a registered agent service if you use one, licenses, and annual filings. See the checklist above for each step.

Do I need a seller's permit in Connecticut?

You need to register to collect sales tax in Connecticut if you sell taxable products or services there. The state rate is 6.35%, and local taxes may add to it. Registration cost: $100.

When does an out-of-state business have to collect Connecticut sales tax?

Out-of-state sellers must register once their sales into Connecticut pass $100,000 and 200 sales a year. Having an employee or office in Connecticut also creates nexus right away.

What does a Connecticut business have to file after it opens?

Recurring filings include: file the Annual Report; file quarterly unemployment reports and withholding returns; file sales tax returns on time. The deadline calendar above lists the dates.

Checklists for every state

This guide organizes official requirements. It isn't legal or tax advice. Fees, forms, and deadlines change, so confirm on each linked state page before you file, and talk to an attorney or CPA about your specific situation.