LLC vs. Partnership in Connecticut
A multi-member CT LLC provides the same taxation as a partnership but with full liability protection. There's no reason to use a general partnership when a CT LLC costs $120 to form and $80/year to maintain. For formation, see our LLC guide. For comparisons, see overview.
The Difference
| Factor | CT LLC | General Partnership |
|---|---|---|
| Liability | Full protection | None — all partners exposed |
| Formation | $120 | $0 |
| Annual | $80/year | $0 |
| Federal tax | Form 1065 (same) | Form 1065 (same) |
| CT income tax | Same rates | Same rates |
| PET | Available | Not available |
PET Advantage — LLC Only
The CT pass-through entity tax is available to LLCs but not general partnerships. This alone justifies the $120/$80 LLC cost for multi-member businesses with higher-income owners.
FAQ
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Get StartedIs there any reason to be a partnership in CT?
No practical reason. An LLC costs $200 first year, provides liability protection, AND enables the PET election (saving thousands in federal taxes for higher earners).