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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When 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.

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