Connecticut LLC Formation Costs — Complete Breakdown
Connecticut's LLC costs are moderate: $120 formation, $80/year Annual Report, no franchise tax. The state's PET option can actually save high-income members thousands in federal taxes, potentially offsetting the state tax cost. For formation, see our LLC guide.
One-Time Formation Costs
| Fee | Amount |
|---|---|
| Certificate of Organization | $120 |
| Name reservation (optional) | $60 (120 days) |
| EIN | Free |
| Our formation service | our service fee (includes state fee) |
Annual Ongoing Costs
| Fee | Amount | When |
|---|---|---|
| Annual Report | $80 | January 1 - March 31 |
| Registered agent | $99/year | Annual |
| CT income tax (members) | 3%-6.99% | April 15 |
| Sales tax (if applicable) | 6.35% collected | Ongoing |
| BET (if gross receipts >$200K) | 0.75% | April 15 |
Connecticut vs. Other States
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Get Started| State | Formation | Annual Fee | Franchise Tax | Sales Tax |
|---|---|---|---|---|
| Connecticut | $120 | $80 | None | 6.35% |
| New York | $200 | $9 + publication (~$1,500) | None | 4%+ local |
| Massachusetts | $500 | $500 | None | 6.25% |
| California | $70 | $800+ | $800 min | 7.25%+ |
| Delaware | $90 | $300 | $300 | None |
Connecticut's $120 formation and $80 annual report are competitive for the Northeast, especially compared to Massachusetts ($500/$500) and New York (publication requirement adds $1,000-$1,500).
The PET Advantage — Hidden Cost Savings
While Connecticut's nominal taxes seem high (6.99% top rate), the PET election effectively makes CT income tax fully deductible federally. For high-income members, this can save $5,000-$20,000+ in federal taxes — potentially making Connecticut more tax-efficient than lower-rate states that lack this option.
FAQ
What's the absolute minimum cost?
$120 (Certificate of Organization only). If you serve as your own agent and draft your own agreement, $120 gets you formed.
How does Connecticut compare to forming in Delaware?
CT: $120 formation + $80/year. Delaware: $90 + $300/year. If you operate in CT, a domestic CT LLC ($200 first year) beats Delaware ($490 first year + CT foreign registration).