LLC vs. Corporation in Connecticut
Both provide liability protection. The LLC wins for most CT small businesses due to flexibility, lower compliance, and PET eligibility. For formation, see our LLC guide. For comparisons, see overview.
Key Differences
| Factor | CT LLC | CT Corporation |
|---|---|---|
| Formation | $120 | $250 |
| Annual Report | $80 | $150 |
| Management | Flexible | Board + officers required |
| Meetings | Not required | Required annually |
| Taxation | Pass-through + PET option | Double taxation (C-corp) |
| BET | Applies | Applies |
| PET | Available | N/A (corporations have different treatment) |
Connecticut Corporation Costs
CT corporations pay more in both formation ($250 vs $120) and annual filing ($150 vs $80). This makes the LLC significantly cheaper for small businesses.
FAQ
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Get StartedWhen is a corporation better in CT?
Raising VC (investors prefer C-corp stock), planning IPO, or needing employee stock option plans. For most Connecticut small businesses: LLC + S-corp election achieves the same tax benefits with less overhead.