Connecticut vs. Delaware LLC
For Connecticut-based businesses, forming in Delaware adds cost and complexity without meaningful benefit. Connecticut's PET option can actually make CT more tax-efficient overall. For formation, see our LLC guide. For comparisons, see overview.
Annual Cost (CT Resident)
| CT Domestic | Delaware + CT Foreign | |
|---|---|---|
| Home state annual | $80 | $300 (DE) |
| CT foreign registration | N/A | $80 |
| CT registered agent | $99 | $99 |
| DE registered agent | N/A | $99 |
| Annual total | $179 | $578 |
Delaware costs $399 more per year and provides no CT tax savings.
The PET Factor
Connecticut's PET effectively makes CT income tax fully deductible federally. This means:
- CT's "high" 6.99% rate costs less than it appears after the federal deduction
- Delaware's 0% income tax advantage is reduced because CT taxes apply regardless (you live/operate in CT)
- The effective "cost" of Connecticut taxation is lower than the nominal rate suggests
FAQ
Ready to get started?
Get StartedMy lawyer says form in Delaware. Why?
Delaware makes sense for: VC-funded startups (investors expect it), complex corporate governance, or no physical presence anywhere. For CT-based small businesses: the extra $399/year buys nothing practical.