Connecticut Multi-Member LLC

Multiple owners forming a Connecticut LLC benefit from the state's modern RULLCA-based statute and the pass-through entity tax option. An operating agreement is critical — Connecticut defaults may not match your intentions. For formation, see our LLC guide. For all types, see LLC types.

PET Advantage for Multi-Member LLCs

The CT pass-through entity tax is particularly valuable for multi-member LLCs:

• Entity pays CT income tax at 6.99%
• Members receive dollar-for-dollar credit
• Entity payment is fully deductible on federal return (bypasses SALT cap)
• Members with income over $200K+ save significantly

Operating Agreement Essentials

Include provisions for:

• PET election decision process (who decides, voting threshold)
• BET allocation among members
• Capital contributions and profit allocation
• Buy-sell provisions
• Dispute resolution

FAQ

Should multi-member CT LLCs always elect PET?

If any member has total income exceeding the SALT cap (~$200K+), PET almost always benefits. The election should be addressed in the operating agreement.