Connecticut LLC for Freelancers

Connecticut freelancers benefit from LLC liability protection, and the state's PET election (available even for single-member LLCs) provides a unique federal tax advantage. For formation, see our LLC guide. For industries, see overview.

CT Advantage for Freelancers

• PET for single-member LLCs: Connecticut uniquely allows sole-member LLCs to elect PET, making your CT state tax fully deductible on your federal return
• Most services exempt from sales tax: Professional consulting, marketing, writing — no collection required
• Proximity to NYC: Many CT freelancers serve NYC clients from lower-cost Connecticut towns

Sales Tax for CT Freelancers

Exempt (most freelance services):

• Business consulting, marketing strategy
• Writing, editing, content creation
• Management advisory

Taxable in CT (check carefully):

• Computer and data processing (1% rate)
• Graphic design (if delivering tangible product)
• Photography services

Cost Summary

FAQ

Should I elect PET as a solo CT freelancer?

If your total income exceeds $200K and you're hitting the $10,000 SALT cap, PET likely saves money. Below that threshold, the cap isn't binding and PET provides no benefit.