An LLC in Connecticut costs $120 to form and $80 every year after that to keep in good standing. Those are the only fees the state itself requires. Most owners spend more once you add a registered agent, any industry-specific permits, and optional legal help, which puts a realistic first-year budget somewhere between $200 and roughly $2,100.
The $120 Formation Fee
Your LLC legally exists once the Secretary of the State accepts a Certificate of Organization. The filing fee is $120, paid once, and you can submit the form online through the state’s business portal.1Connecticut Business One Stop. Domestic Limited Liability Companies Forms and Fees The form itself asks for your LLC’s name, principal office address, and the name and address of your registered agent.
If you want to lock in a business name before you’re ready to file, Connecticut will reserve one for $60.2Connecticut Secretary of the State. Connecticut Business Services Division Fee Schedule It’s optional. If you already know your name and are ready to file, skip it.
The $80 Annual Report
Every Connecticut LLC files an Annual Report between January 1 and March 31. The fee is $80.1Connecticut Business One Stop. Domestic Limited Liability Companies Forms and Fees The report updates your current address, members, and registered agent, and you file it online.
Missing the deadline matters. If your LLC is more than a year behind, the Secretary of the State can begin administrative dissolution. You’ll get a notice and three months to catch up. If you don’t, the state can dissolve the LLC, at which point it can only wind down its affairs. Reinstatement is possible but means filing the overdue report, paying a reinstatement fee and penalties, reappointing a registered agent, and proving taxes are paid. You can also lose rights to your name if another business registers it in the meantime.
Registered Agent: Free or Paid
Connecticut requires every LLC to have a registered agent who accepts legal documents and official mail.3Secretary of the State of Connecticut. Certificate of Organization – Limited Liability Company The agent must be a Connecticut resident with a physical in-state address, or a business entity already on file with the Secretary of the State that has a Connecticut address.4Business.CT.gov. Registered Agent
You can be your own agent at no cost. The tradeoffs: your address goes on the public record, and you need to be available at that address during business hours to accept service of process. Commercial services handle it for $50 to $300 a year. For a single-member LLC run from home, acting as your own agent is fine. If you care about privacy or travel often, pay for the service.
Sales Tax Permit and Industry Licenses
Connecticut doesn’t have a general state business license. Whether you need a license depends on your industry.5Business.CT.gov. Business Licenses and Permits The Department of Consumer Protection handles fields like accounting, real estate, retail, and construction; the Department of Public Health covers healthcare. Fees range from under $50 to several hundred dollars depending on the license.
One rule catches a lot of new owners: if you sell goods, offer taxable services, or operate lodging, you must register for a Sales and Use Tax Permit. Initial registration is $100.6Connecticut State Department of Revenue Services. Sales and Use Tax Information The permit expires every two years but renews automatically at no charge if your account is active and in good standing.7Connecticut Department of Revenue Services. Other Helpful Sales and Use Tax Information
If you’ve seen older guides mention a Connecticut Business Entity Tax, ignore them. The state eliminated it for tax periods beginning after December 31, 2018.8Connecticut Department of Revenue Services. Business Entity Tax Your LLC won’t owe it.
Situational State Filing Fees
These aren’t formation costs, but they come up over the life of the LLC:
- Certificate of Amendment to change your name, registered agent, or other filed details: $120.2Connecticut Secretary of the State. Connecticut Business Services Division Fee Schedule
- Certificate of Legal Existence (often requested by banks and lenders): $50 for the short-form or express version, $100 for the long-form, which is only available for domestic LLCs.9Business.CT.gov. Certificate of Legal Existence Forms and Fees
- Foreign LLC registration if you formed elsewhere and want to operate in Connecticut: $120, plus the same $80 annual report.10Business.CT.gov. Foreign LLC Forms and Fees
EIN: Free From the IRS
Most LLCs need an Employer Identification Number from the IRS, especially with employees or more than one member. Getting one is free and takes a few minutes on the IRS site.11Internal Revenue Service. Get an Employer Identification Number
Watch out for third-party sites that charge up to $300 to file the EIN application for you. Many design their pages to look like the IRS. The FTC has warned operators of these sites, saying they often create a false impression of IRS affiliation.12Federal Trade Commission. FTC Warns Operators of Websites that Charge for an Employer Identification Number and Claim Affiliation with the IRS Go to irs.gov directly.
Operating Agreement
Connecticut doesn’t require a written operating agreement.13Connecticut General Assembly. Connecticut General Statutes Chapter 613a – Uniform Limited Liability Company Act Agreements can be oral, written, implied, or any combination. Putting one in writing is still advisable, particularly for multi-member LLCs. Without one, disputes over profits, management authority, and member departures fall back to the state statute, which may not match what you and your partners actually agreed to.
You can draft a basic agreement yourself using free templates. For multi-member LLCs, complex ownership splits, or buy-sell provisions, an attorney-drafted agreement typically runs $500 to $1,500 depending on complexity.
Insurance and Professional Help
LLC status protects your personal assets from business debts but doesn’t protect the business itself. General liability policies for small LLCs with few employees typically run $30 to $100 a month, though premiums depend heavily on industry, coverage limits, and claims history. A construction business pays far more than a consulting firm. If you provide professional advice, errors and omissions coverage fills gaps that general liability doesn’t. Connecticut may also require workers’ compensation once you hire employees.
You don’t need professional help to form the LLC, but many owners add it as they grow:
- Legal services for formation work and operating agreement drafting: roughly $500 to $1,500, more for complex matters.
- Monthly bookkeeping retainers for small businesses: $250 to $500, with growing businesses paying $1,000 or more depending on volume.
- Tax preparation: $300 to $500 for a straightforward single-member return, $900 or higher for multi-member LLCs with more complex financials.
None of these are required. Plenty of single-member owners handle their own books and use tax software. The math shifts once you add employees, take on partners, or earn enough that a missed deduction costs more than an accountant.
First-Year Total
At the bare minimum, a Connecticut LLC costs $200 in state fees for the first year: $120 to form, $80 for the first annual report. A realistic budget for most new LLCs looks like this:
- Certificate of Organization: $120
- Annual Report: $80
- Registered agent service: $0 to $300
- Sales and Use Tax Permit if applicable: $100
- EIN: $0
- Operating agreement, attorney-drafted: $0 to $1,500
That puts most first-year totals between $200 and $2,100, before insurance, professional services, and any industry licenses. After year one, recurring costs drop to the $80 annual report plus whatever you’ve chosen to carry for a registered agent and outside help.