Connecticut LLC for E-Commerce — Sales Tax Required

Unlike Oregon (zero sales tax), Connecticut requires e-commerce LLCs to collect 6.35% sales tax on taxable goods sold to CT customers. Connecticut also taxes digital goods and certain services. For formation, see our LLC guide. For industries, see overview.

CT E-Commerce Sales Tax

You must:

1. Register for a Sales Tax Permit at portal.ct.gov/DRS (free)
2. Collect 6.35% on taxable goods shipped to CT customers
3. Collect on digital goods (ebooks, software, streaming)
4. File returns monthly or quarterly through myconneCT
5. Remit collected tax to DRS

CT Taxes More Than Physical Goods

Connecticut's sales tax extends to:

• Digital downloads (music, ebooks, apps): 6.35%
• SaaS/cloud services: 1%
• Computer services: 1%
• Streaming services: 6.35%

Formation Steps

1. Certificate of Organization ($120) at business.ct.gov
2. EIN (free, irs.gov)
3. CT Sales Tax Permit (free, portal.ct.gov/DRS)
4. Business bank account
5. Configure tax collection (Shopify, TaxJar, or manual)
6. File returns on schedule

FAQ

Are digital products taxable in CT?

Yes. Connecticut taxes digital goods (downloads, streaming, SaaS) — unlike many states that only tax physical goods. If you sell digital products to CT customers, you must collect.

What about marketplace sales?

Amazon, eBay, Etsy collect and remit CT sales tax as marketplace facilitators. You only need to handle tax yourself for direct sales (your own website).