How to Start a Business in Connecticut (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

To start a business in Connecticut, you must register your entity with the Connecticut Secretary of the State (SOTS) and obtain an Employer Identification Number (EIN) from the IRS. Most businesses also need to register with the Connecticut Department of Revenue Services (DRS) for state taxes, including sales tax or the Pass-Through Entity Tax, and file an annual report with the SOTS.

Overview of Starting a Business in Connecticut

Starting a business in Connecticut involves several key steps, primarily dealing with the Connecticut Secretary of the State (SOTS) for entity registration and the Connecticut Department of Revenue Services (DRS) for state tax compliance. The specific requirements depend on your chosen business structure, such as a sole proprietorship, partnership, Limited Liability Company (LLC), or corporation.

For most formal business entities, the process begins with registering your business name and legal structure with the SOTS. This establishes your business as a legal entity in the state. Subsequently, you will need to obtain a federal Employer Identification Number (EIN) from the IRS, which is essential for tax purposes and opening a business bank account. Finally, you must register with the DRS for any applicable state taxes, such as sales and use tax, corporation business tax, or the Pass-Through Entity Tax.

This guide focuses on the general steps applicable to most new businesses in Connecticut. For detailed information on specific entity types, such as forming an LLC in Connecticut, refer to dedicated resources.

Step 1: Choose Your Business Structure

The first decision for any new business is selecting its legal structure. This choice impacts liability, taxation, and administrative requirements. Common business structures include:

• Sole Proprietorship: The simplest structure, owned and run by one individual. There's no legal distinction between the owner and the business. No state registration is required with the SOTS, but you may need to register a trade name (DBA).
• General Partnership: Two or more individuals agree to share in all profits or losses of a business. Like sole proprietorships, no formal state filing is required to create a general partnership, but a partnership agreement is highly recommended.
• Limited Liability Company (LLC): Offers personal liability protection to its owners (members) while providing flexible taxation options. LLCs are popular for small businesses due to their balance of protection and simplicity. You must file a Certificate of Organization with the SOTS.
• Corporation (C-Corp or S-Corp): Provides the strongest liability protection for owners (shareholders) but involves more complex setup and compliance. Corporations file a Certificate of Incorporation with the SOTS.
• Limited Partnership (LP) / Limited Liability Partnership (LLP): These structures are often used by professionals or for specific investment purposes, offering limited liability to certain partners. They require registration with the SOTS.

Each structure has different formation requirements, ongoing compliance, and tax implications. Consult with a legal or tax professional to determine the best structure for your specific business needs. For a general overview of entity types, see business structures explained.

Step 2: Register Your Business with the Connecticut Secretary of the State (SOTS)

If you choose to form a statutory business entity like an LLC, corporation, or limited partnership, you must register it with the Connecticut Secretary of the State (SOTS). This process legally establishes your business in Connecticut.

Name Availability and Reservation

Before filing, you must ensure your chosen business name is distinguishable from other entities already registered with the SOTS. You can search the SOTS business records online. If your desired name is available but you're not ready to file, you can reserve it for 120 days by filing a Name Reservation Application (Form CD-160 for LLCs, Form CD-165 for corporations) with a fee of $60.

Appoint a Registered Agent

All statutory business entities in Connecticut must appoint and continuously maintain a registered agent. The registered agent is an individual or entity with a physical street address in Connecticut (not a P.O. Box) who is designated to receive legal documents, such as service of process, and official government correspondence on behalf of your business. The registered agent must consent to the appointment. You will designate your initial registered agent in your formation documents. For more details, see Connecticut registered agent requirements.

File Formation Documents

The specific document you file depends on your chosen business structure:

• Limited Liability Company (LLC): File a Certificate of Organization (Form LLC-1) with the SOTS. The filing fee is $120.
• Corporation: File a Certificate of Incorporation (Form CON-1 for domestic for-profit corporations) with the SOTS. The filing fee is $120.
• Limited Partnership (LP): File a Certificate of Limited Partnership (Form LP-1) with the SOTS. The filing fee is $120.
• Limited Liability Partnership (LLP): File a Certificate of Limited Liability Partnership (Form LLP-1) with the SOTS. The filing fee is $120.

These documents can typically be filed online through the SOTS CONCORD system, by mail, or in person. Online filing is generally the fastest method. After filing, the SOTS will return a filing receipt, which serves as proof of your business's legal existence.

If you are operating a sole proprietorship or general partnership under a name different from your personal legal name, you may need to register a trade name (DBA) with the town clerk in the town where your business is located, rather than with the SOTS.

Step 3: Obtain a Federal Employer Identification Number (EIN)

A federal Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a nine-digit number assigned by the IRS to identify businesses for tax purposes. Most businesses will need an EIN, even if they don't have employees.

You will need an EIN if your business:

• Has employees.
• Is taxed as a corporation or partnership.
• Files excise tax returns.
• Withholds taxes on income, other than wages, paid to a non-resident alien.
• Involves certain types of organizations (e.g., trusts, estates, non-profits).

Even single-member LLCs without employees often obtain an EIN to simplify opening business bank accounts or to avoid using their personal Social Security Number for business transactions. Applying for an EIN is free and can be done online through the IRS website. You must have a valid Taxpayer Identification Number (SSN, ITIN, or existing EIN) to apply.

Step 4: Register with the Connecticut Department of Revenue Services (DRS)

After registering your entity with the SOTS and obtaining an EIN, most businesses must register with the Connecticut Department of Revenue Services (DRS) for state tax purposes. This is typically done through the DRS's online Taxpayer Service Center (TSC).

The specific taxes you need to register for depend on your business activities and structure. Common state taxes include:

• Sales and Use Tax: If your business sells taxable goods or services, you must register for and collect Connecticut sales and use tax.
• Withholding Tax: If you have employees, you must register to withhold Connecticut income tax from their wages.
• Corporation Business Tax: C-corporations are subject to the Connecticut Corporation Business Tax.
• Pass-Through Entity Tax (PET): LLCs, S-corporations, and partnerships are generally subject to the PET at the entity level, with owners receiving a credit for taxes paid.
• Unemployment Insurance Tax: If you have employees, you must register with the Connecticut Department of Labor for unemployment insurance.

The DRS website provides a comprehensive guide to business taxes and online registration. It is crucial to register for all applicable taxes to avoid penalties. For more information, see Connecticut business taxes.

Step 5: Obtain Business Licenses and Permits

Connecticut does not have a single statewide general business license. However, many businesses require specific licenses or permits depending on their industry, profession, or location. These can be issued at the federal, state, or local (city/town) level.

• State Licenses: Certain professions (e.g., doctors, lawyers, contractors, cosmetologists) require state-issued professional licenses. The Connecticut Department of Consumer Protection and other state agencies regulate various industries.
• Local Licenses: Your city or town may require local business licenses, zoning permits, or health permits, especially for retail, food service, or home-based businesses. Contact your local town clerk or municipal government for specific requirements.
• Federal Licenses: A few highly regulated industries, such as aviation, firearms, and alcoholic beverages, require federal licenses.

It is the business owner's responsibility to identify and obtain all necessary licenses and permits before operating. Failure to do so can result in fines or forced closure. For a general guide, see business licenses and permits.

Step 6: Ongoing Compliance and Annual Requirements

Once your business is established, ongoing compliance is crucial to maintain its good standing and avoid penalties. Key annual requirements in Connecticut include:

• Annual Report: LLCs, corporations, and other statutory entities must file an annual report with the Connecticut Secretary of the State. The report is due in the anniversary month of the entity's formation or registration and costs $80. Failure to file can lead to administrative dissolution or revocation of your business's authority to operate.
• State Tax Filings: Depending on your business structure and activities, you will have various state tax filing obligations with the DRS. This may include sales and use tax returns, withholding tax returns, Corporation Business Tax returns, or Pass-Through Entity Tax returns.
• Federal Tax Filings: All businesses must file federal income tax returns with the IRS. The specific forms and deadlines depend on your business structure (e.g., Form 1040 Schedule C for sole proprietors, Form 1120 for corporations, Form 1065 for partnerships).
• Maintain Registered Agent: You must continuously maintain a registered agent with a physical street address in Connecticut. If your registered agent changes, you must update this information with the SOTS.
• Operating Agreement / Bylaws: While not filed with the state, it is important to maintain an up-to-date LLC operating agreement or corporate bylaws. These internal documents govern the ownership, management, and operation of your business.

Staying organized and aware of deadlines is essential for long-term business success. Consider using a calendar or reminder system to track important dates.

Step 7: Other Important Considerations

Beyond the core registration and tax requirements, several other factors are critical for a new business:

• Business Bank Account: Open a separate business bank account to keep personal and business finances distinct. This is crucial for accounting, tax purposes, and maintaining personal liability protection for LLCs and corporations. Banks will typically require your EIN and proof of state registration.
• Business Insurance: Evaluate your business insurance needs. Common types include general liability, professional liability, property insurance, and workers' compensation (if you have employees).
• Accounting and Bookkeeping: Set up a system for tracking your income and expenses from the start. Accurate records are vital for tax compliance, financial management, and making informed business decisions.
• Website and Online Presence: Establish an online presence, which may include a website, social media profiles, and local business listings.
• Intellectual Property: Consider protecting your business name, logo, or unique products/services through trademark or copyright registration.
• Employment Laws: If you plan to hire employees, familiarize yourself with federal and Connecticut state employment laws, including wage and hour regulations, workplace safety, and anti-discrimination laws.

Proactive planning in these areas can help your business operate smoothly and avoid future complications.

Frequently Asked Questions

How much does it cost to start a business in Connecticut?

The primary state filing fee for a new business entity in Connecticut is $120 for an LLC (Certificate of Organization) or corporation (Certificate of Incorporation), paid to the Secretary of the State. There is also an annual report fee of $80 for LLCs and corporations. Other costs may include registered agent services, business licenses, and federal EIN application (which is free).

What is the main state agency for business registration in Connecticut?

The Connecticut Secretary of the State (SOTS) is the primary agency for registering statutory business entities like LLCs and corporations. You will file your formation documents (e.g., Certificate of Organization for an LLC) with the SOTS. The Department of Revenue Services (DRS) handles state tax registration.

Do I need a registered agent in Connecticut?

Yes, all statutory business entities formed or registered to do business in Connecticut, including LLCs and corporations, must maintain a registered agent. The registered agent must have a physical street address in Connecticut and be available to accept legal and official documents on behalf of the business.

Does Connecticut have a state income tax for businesses?

Connecticut imposes a Corporation Business Tax on C-corporations. Pass-through entities like LLCs and S-corporations are generally subject to the Pass-Through Entity Tax (PET) at the entity level, with owners receiving a credit for taxes paid. Individual owners of pass-through entities also pay personal income tax on their share of the business's profits.

What is the annual report requirement in Connecticut?

Connecticut LLCs and corporations must file an annual report with the Secretary of the State. The annual report is due on the anniversary month of the entity's formation or registration and costs $80. Failure to file can lead to administrative dissolution or revocation.

Do I need a federal EIN for my Connecticut business?

Most Connecticut businesses will need a federal Employer Identification Number (EIN) from the IRS. An EIN is required if your business has employees, is taxed as a corporation or partnership, or files certain excise tax returns. Even single-member LLCs without employees often obtain an EIN for banking and other business purposes.

Related

• How to Start a Business (cluster hub)
• How to Form an LLC in Connecticut
• Connecticut Registered Agent Requirements
• How to Get an EIN
• Connecticut Business Taxes Explained
• Business Licenses and Permits
• How to Start a Business in Massachusetts (sibling)
• How to Start a Business in New York (sibling)

Sources

1. Connecticut Secretary of the State - Business Registration Overview.
2. Connecticut Secretary of the State - Business Services Filing Fees ($120 for LLC/Corp formation, $80 for annual report, $60 for name reservation).
3. Connecticut Secretary of the State - Annual Report Information.
4. Connecticut Secretary of the State - Registered Agent Information.
5. Connecticut Secretary of the State - Online Filing and Search (CONCORD system).
6. Connecticut Department of Revenue Services - Business Registration Overview.
7. Connecticut Department of Revenue Services - Online Business Registration (Taxpayer Service Center).
8. Connecticut Department of Revenue Services - Sales and Use Tax Overview.
9. Connecticut Department of Revenue Services - Pass-Through Entity Tax (PET).
10. Connecticut Department of Revenue Services - Corporation Business Tax.
11. IRS - Get an Employer Identification Number (EIN).
12. IRS - Limited Liability Company (LLC) Information.
13. Connecticut General Statutes - Chapter 613: Limited Liability Companies.
14. Connecticut General Statutes - Chapter 610: Corporations.
15. Connecticut General Statutes - Chapter 615: Uniform Partnership Act.

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the Connecticut Secretary of the State and Department of Revenue Services before acting.