Connecticut LLC Taxes
How to form an LLC in Connecticut
This Quick Start Guide is a brief overview of how to form an LLC in Connecticut.
Connecticut LLC costs:
Connecticut state fee: $120 (one-time fee)
Annual report: $20 (every year)
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Note: Our tax lesson is not as step-by-step as our LLC formation lessons, due to the uniqueness and variation among businesses. Taxes are usually not as straightforward as forming an LLC, and therefore, the information below is an overview, and not a comprehensive guide.
You will likely need to consult with a local tax professional to make sure you meet all your Connecticut tax obligations. We recommend using Thumbtack.
CT Department of Revenue State Tax ID Number
Because you are operating a business in Connecticut, you will need to register with the Department of Revenue and get a CT State Tax Identification Number.
You can contact the Department of Revenue with any questions at 860-297-5962, or visit their contact page for additional information.
Connecticut Business Entity Tax (BET)
All LLCs conducting business in CT (regardless of income) must pay the $250 Business Entity Tax (BET) every 2 years.
It is due by April 15th of every odd year, following the close of the Biennial Period.
The current Biennial Period is 1/1/2015 to 12/31/2016, which means the BET is due by April 15, 2017.
The next Biennial Period is 1/1/2017 to 12/31/2018, which means the following BET is due by April 15, 2019. And so on.
If you have questions about BET, you can read these FAQs, or contact the Department of Revenue at 860-297-5962.
Connecticut Sales and Use Tax
Sales and use taxes are due if you sell goods or taxable services in Connecticut.
You also need to obtain a Sales Tax Permit before you begin selling your goods or services.
You are responsible for collecting and paying sales and use taxes whether or not you collect them from your customers. If you do not obtain a Sales Tax Permit, the state will fine you up to $500 and you could possibly face imprisonment.
Connecticut Withholding Tax (if you have employees)
As mentioned here, if you’re doing business in CT and considered an employer, you must withhold Connecticut Income Tax.
You must first register for withholding tax through the CT Department of Revenue.
Additionally, you’ll need to register with the Connecticut Department of Labor for unemployment and workers compensation taxes.
What other taxes/forms are due?
Depending on your industry, where your business is located, how you are taxed by the IRS, and whether or not you have employees, will determine which additional taxes and forms are due.
Some examples of other taxes and forms due are:
- Form CT-1040
- Form CT-1065
- Form CT-1065 & CT-1120SI (for LLC taxed as S-Corp)
- Corporation Business Tax
- Net Income Tax
- The Minimum Tax
- Estimated Corporation Business Tax
- Controlling Interest Transfer Tax
- Motor Vehicle Fuels Tax
- Franchise Tax
- Property Tax
- And potentially more
For a full list of additional taxes in Connecticut, please see here.
Calculating your tax obligations in Connecticut can be complicated and if done improperly can negatively impact your LLC.
Hiring a tax professional will not only help you keep your Connecticut LLC in compliance, but it will also give you an advisor to go to for other business questions.
You’ll want someone who’s a good fit for your company, makes you feel comfortable, and is willing to answer all of your questions. It should be someone you like personally as well as professionally. We recommend talking with at least 2-3 people before making your final decision.