How to Start a Business in Connecticut
Connecticut is home to roughly 380,000 small businesses, which make up 99.4% of all employers in the state.
In This Article
The Complete Guide
How to Start a Business in Connecticut — 12 Steps
This is a full walkthrough: entity selection, state registration, federal tax IDs, licenses, banking, insurance, and ongoing compliance. Every step includes the official Connecticut links, fees, and timelines.
Cost depends on your structure. A sole proprietorship may cost nothing to start. An LLC costs $120 to file online. A corporation costs $400. Step 3 walks through every option.
Connecticut: Key Business Facts
Updated: Feb 2026- LLC Filing Fee (Online)
- $120
- Sole Proprietorship / DBA
- $20
- Corporation Filing
- $400
- Processing Time
- 3-5 business days
- Expedited Option
- $50 / 24 hours
- State Income Tax
- 3% to 6.99% (graduated)
- Sales Tax Rate
- 6.35%
- Gross Receipts Tax
- No
- Franchise / Annual Tax
- $250 minimum for corporations at…*
- Filed With
- Connecticut Secretary of the State
- State Business License
- Not required (check local)
- Last Verified
- February 24, 2026
* Franchise / Annual Tax: $250 minimum for corporations at formation
Local licenses: Connecticut does not require a general state business license, but most cities and towns require a local business license or zoning permit. Check with your municipal clerk's office before operating.
What It Takes to Start a Business in Connecticut
Forming a business in Connecticut starts with filing your formation documents through the Connecticut Secretary of the State's online portal at business.ct.gov. An LLC costs $120 to file, while a corporation costs $400 (including the minimum franchise tax).
You will also need a federal EIN, any required local permits, and a business bank account. Most founders complete the entire process in one to two weeks if they have their documents prepared in advance.
Validate Your Business Idea in Connecticut
Research whether your idea fits Connecticut's economy before investing time and money. The state's top industries include:
- Finance and insurance (Hartford is known as the Insurance Capital of the World)
- Healthcare and bioscience
- Advanced manufacturing and aerospace
Contact the Connecticut Small Business Development Center (CTSBDC) for free one-on-one advising and market research tools. Their advisors help you assess demand, competition, and pricing before you commit to a structure.
Pro Tip
Write a Business Plan
Draft a business plan that covers your revenue model, target customers, startup costs, and 12-month financial projections. Banks and SBA lenders require a formal business plan before approving any financing.
Use our business plan guide for a free template and section-by-section instructions. Keep the plan under 20 pages and update it quarterly as your numbers come in.
Pro Tip
Choose Your Business Structure in Connecticut
Most founders in Connecticut choose an LLC because it combines personal liability protection with pass-through taxation. Filing an LLC costs $120 at the Connecticut Secretary of the State.
The four main structures are sole proprietorship, LLC, S-Corp, and C-Corp. See the full comparison below before deciding, or read our Connecticut LLC formation guide for a deeper walkthrough.
Pro Tip
Business Structure Comparison — Connecticut
Full comparison guide| Structure | Connecticut Filing Cost | Personal Liability | How You're Taxed | Best For |
|---|---|---|---|---|
| Sole Proprietorship | $20 (DBA) | ❌ None | Personal income tax. No separate return. | Freelancers, consultants, side hustles testing an idea with no employees. |
| LLC Most Common | $120 online | ✅ Personal assets protected | Pass-through by default. Elect S-Corp when profitable. | Most small businesses. Best balance of liability protection, flexibility, and tax options. |
| S-Corporation | ~$120 + IRS election | ✅ Personal assets protected | Pass-through. Owners pay themselves a salary — can reduce self-employment tax. | Profitable businesses (typically $50K+ net) where payroll tax savings justify the complexity. |
| C-Corporation | $400 | ✅ Personal assets protected | Corporate tax rate (21% federal). Double taxation on dividends. | Startups planning to raise VC funding, issue stock options, or eventually go public. |
| General Partnership | Free / No State Filing | ❌ None — all partners personally liable | Pass-through. Each partner reports share on personal return. | Two or more owners who trust each other and don't need liability protection. |
Which should you choose? Most first-time founders in Connecticut pick an LLC — it protects your personal assets without the complexity of a corporation. If you're not sure, consult a CPA or business attorney before filing. Read the full Connecticut LLC guide →
Choose and Register Your Business Name
Your business name must be distinguishable from every other entity registered in Connecticut. Search the Connecticut business name database to confirm availability before filing.
LLCs must include "LLC" or "Limited Liability Company" in the official name. You can reserve a name for $60 if you are not ready to file your formation documents yet.
Pro Tip
Check Connecticut Business Name Availability
Search the official Connecticut Secretary of the State database before you file.
Register Your Business with the State
File your Certificate of Organization with the Connecticut Secretary of the State online for $120 (LLC) or $400 (corporation, including the $250 minimum franchise tax). Standard processing takes 3 to 5 business days, or pay an extra $50 for 24-hour expedited service.
You will need a registered agent with a physical Connecticut address. See our Connecticut registered agent guide for affordable options.
After approval, you will receive a stamped Certificate of Organization (or Incorporation), which you need to open a bank account and apply for licenses.
Pro Tip
File Online with Connecticut Secretary of the State
Official Connecticut business registration portal. Standard processing: 3-5 business days.
Get Your Federal EIN from the IRS
Apply for a free Employer Identification Number (EIN) directly at the IRS website. The online application takes about 10 minutes, and you receive your EIN immediately.
You need an EIN to open a business bank account, hire employees, and file federal taxes. Never pay a third party for this (the IRS charges nothing).
Important
Get Your Connecticut Licenses and Permits
Requirements vary by industry, but most Connecticut businesses need some combination of:
- Sales Tax Permit (required if selling taxable goods or services; register at the Connecticut Department of Revenue Services for approximately $100)
- Local Business License or Zoning Permit (required by most cities and towns; check with your municipal clerk)
- Professional or Occupational License (required for contractors, healthcare providers, real estate agents, and other regulated fields; apply through the Connecticut eLicense portal)
- Employer Registration (required before hiring; register with the Connecticut Department of Labor for unemployment insurance and withholding)
Pro Tip
Important
Open a Business Bank Account
Bring your EIN confirmation letter, Certificate of Organization, government-issued ID, and your LLC operating agreement to open a dedicated business checking account. Keeping personal and business finances separate is critical for maintaining your liability protection.
Compare Connecticut-friendly options in our best business bank accounts guide. Many online banks offer free checking with no minimum balance requirements.
Important
Set Up Accounting and Understand Connecticut Taxes
Connecticut has a graduated income tax ranging from 3% to 6.99%, and LLCs with pass-through income must file Connecticut Form CT-1065/CT-1120SI. The state sales tax rate is 6.35%, collected on most tangible goods and certain services.
Register with the Connecticut Department of Revenue Services (DRS) for all applicable tax accounts. Quarterly estimated tax payments are due on the 15th of April, June, September, and January.
Set up cloud accounting software from day one to automate tax categorization and invoicing. See our best accounting software picks for small businesses.
Pro Tip
Get Business Insurance in Connecticut
Connecticut requires workers' compensation insurance for all businesses with one or more employees. General liability insurance is not legally mandated but is the baseline policy every business should carry.
Compare coverage options and get quotes through our business insurance guide. Many landlords and clients will also require a Certificate of Insurance before signing contracts.
Pro Tip
Important
Build Your Online Presence
Claim your free Google Business Profile to appear in local search results immediately. This is the single highest-impact marketing step for a new local business.
Build a simple website using one of the platforms in our best website builders guide. Even a one-page site with your services, location, and contact info will outperform having no web presence.
Stay Compliant After Forming in Connecticut
After forming, keep your Connecticut business in good standing by meeting these deadlines:
- Annual Report (LLCs) due between January 1 and March 31 each year, fee: $80 (file at business.ct.gov)
- Annual Report (Corporations) due between January 1 and March 31 each year, fee: $150
- State Tax Filings quarterly estimated payments and annual returns filed with the Connecticut DRS
- Registered Agent maintain a registered agent with a physical Connecticut address at all times
- Business Licenses renew any state or local licenses and permits annually as required
Missing the annual report deadline results in a late fee and potential administrative dissolution. Track all deadlines with StartupOwl's compliance calendar.
Pro Tip
Important
Connecticut Business Background & Context
State-specific data to help you plan — taxes, economy, funding, and what to expect after you form.
Frequently Asked Questions
What to Do Next
Once you've registered your Connecticut business, take these steps to set up for success.
Form Your Connecticut LLC
Step-by-step walkthrough for filing your Certificate of Organization for $120 at business.ct.gov.
Start Your LLC →
Get a Connecticut Registered Agent
Compare registered agent services that provide a physical Connecticut address and handle your legal documents.
Compare Agents →
Open a Business Bank Account
See the best business checking accounts with no monthly fees and easy online applications.
Compare Accounts →
Write Your Business Plan
Use our free template to build a plan that satisfies banks, SBA lenders, and investors.
Get the Template →
Explore Connecticut SBDC Resources
Connect with CTSBDC advisors for free consulting, market research, and funding guidance.
Visit CTSBDC →
Disclaimer: This guide is for informational purposes only and does not constitute legal or tax advice. Requirements change — always verify current fees and requirements directly with Connecticut Secretary of the State and the IRS before filing.
Ready to Form?
Get your Connecticut business registered with ZenBusiness — choose your structure, file the paperwork, and stay compliant from day one.
About the Author
Director of Entrepreneurial Strategy
Jennifer is a former founder who built and sold a boutique B2B logistics company in her thirties. She understands the emotional and strategic toll of building a business from the ground up without a massive safety net. She is deeply connected to the Atlanta startup ecosystem and is passionate about equitable funding.
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