How Much Does an LLC Cost in Connecticut? (Filing Fees 2024)

Are you considering starting an LLC in Connecticut but want to know the initial filing cost?

First, a one-time fee of $120 is to file the Certificate of Organization with the Connecticut Secretary of State. But don’t forget—you’ll also need to budget for the $80 annual report fee yearly to keep your LLC in good standing.

That’s not all.

You might also want to factor in the cost of hiring a registered agent, choosing the perfect name for your LLC, or getting a Doing Business As (DBA) name, as well as any licenses or taxes your business might need to stay legal.

How Much Does an LLC Cost in Connecticut?

Starting a limited liability company (LLC) in Connecticut comes with a few essential costs to keep in mind. The first and most important is the $120 filing fee for the Certificate of Organization, which you’ll pay the Secretary of State of Connecticut.

But that’s just the beginning. Here are some other costs you might encounter:

• Registered Agent Services: You must hire one if you don’t act as your registered agent. This service typically costs between $100 to $300 per year. A registered agent will receive legal documents and official notices on behalf of your LLC.
• Annual Report Fee: Your LLC must file an annual report with the state, which costs $80. This fee is crucial for keeping your LLC in good standing with Connecticut state regulations.
• LLC Name Reservation: For $60, you can reserve your LLC name before filing the Certificate of Organization. This step is optional but helpful if you want to ensure your business name is available.
• Doing Business As (DBA) Name: If your LLC operates under a different name than the one registered, you must file for a DBA. The fee may vary depending on the city/county.
• Business Licenses: Depending on your industry, you may need specific licenses to operate legally in Connecticut. The cost varies based on the type of business and location, so it’s wise to check with local authorities.
• Taxes: Besides state and federal taxes, your LLC may be subject to additional taxes based on the nature of your business. It’s essential to consult with a tax professional to understand your obligations.
• Certificate of Legal Existence: A Certificate of Legal Existence confirms that your LLC is in good standing and costs $50.

Additionally, while obtaining an Employer Identification Number (EIN) from the IRS is free, some businesses hire professionals to assist with this process, which could add to your costs.

LLC Costs in Connecticut (Formation Fees)

Here is a table outlining the main requirements and associated fees for forming an LLC in Connecticut.

Connecticut LLC Requirements	Cost
LLC Business Name	$0
Articles of Organization	$120
Operating Agreement (optional)	$0 (with Northwest)
EIN Number	$0 (free from IRS)
Annual Report	$80/annually
LLC Name Reservation Fee (optional)	$60
Certificate of Legal Existence (optional)	$50
Foreign LLC Registration (optional)	$120
Fictitious Name (DBA) (optional)	Varies
Taxes	Varies
State Business License Fees	Varies
Registered Agent Services (optional)	$0-$125 (Northwest)
LLC Formation Services (optional)	$39
Total LLC Costs in Connecticut	$200 – $594

Total Connecticut LLC costs range from $200 to $594. If you do everything yourself and skip the optional extras, you might only spend around $200. However, if you decide to pay for additional services and requirements, your costs could go up to between $400 and $594.

To break it down, the first mandatory expense is the $120 fee for filing the Articles of Organization, which is essential for officially establishing your LLC. You’ll also need to budget for the annual report, which costs $80 annually. Obtaining an Employer Identification Number (EIN) is free from the IRS, and securing an LLC business name costs $0.

Now, let’s discuss the optional costs.

An Operating Agreement is recommended but can be obtained at no cost using services like Northwest. Reserving your LLC name will typically cost $60. You may also want a Certificate of Legal Existence, which costs $50, and if you plan to register a foreign LLC in Connecticut, that incurs a fee of $120. The costs can vary if you wish to operate under a different name (DBA).

Regarding registered agent services, you can either act as your agent at no cost or hire a professional service, which typically ranges from $100 to $300. If you choose to use LLC formation services, that typically costs around $39.

Remember that taxes and state business license fees can vary based on your specific business activities.

Connecticut LLC Business Name Cost ($0)

Choosing a business name for your LLC in Connecticut is free. The state does not charge a fee for naming your business. You can select a name that reflects your services or products without financial burden.

Before finalizing your business name, ensure it meets the state requirements. Your name must be unique and not too similar to existing businesses in Connecticut. A quick search on the Connecticut Secretary of State’s website can help you check name availability.

Consider registering a trademark if you want to set your business name apart. Although trademark registration involves fees, running a memorable and unique name can offer long-term benefits.

In short, naming your LLC won’t cost you anything in Connecticut. This opportunity lets you explore creative options while keeping your initial expenses low.

Connecticut Articles of Organization ($120)

To start an LLC in Connecticut, you must file the Articles of Organization. This document is essential for creating your LLC and is submitted to the Connecticut Secretary of State.

The filing fee for the Articles of Organization is $120. This is a one-time fee, meaning you won’t have to pay it yearly. Filing can be done online, which is often faster and more convenient.

The Connecticut LLC processing time depends on the filing method. If you file online, you can expect approval for your LLC in 2-3 business days. If you choose to file by mail, it typically takes about 3-4 weeks.

Filing online is generally recommended as it simplifies the process and speeds up approval times. Once your Articles of Organization are approved, your LLC is officially formed.

Remember, keeping track of any other fees related to your LLC is essential. For example, you might also need to budget for a registered agent service or an annual report fee. Understanding these costs will help you plan better for your business expenses.

LLC Operating Agreement Cost in Connecticut ($0 with Northwest)

When forming an LLC in Connecticut, you need an Operating Agreement. This document outlines how your LLC will run and the roles of its members. It sets clear rules and helps prevent disputes among members.

Creating an Operating Agreement can cost money, but with Northwest Registered Agent, the fee is $0. They provide this service as part of their LLC formation package. This means you can have a well-structured Operating Agreement without extra costs.

You can create your Operating Agreement using templates found online. However, using a service like Northwest can save you time and ensure you have a complete document.

Not having an Operating Agreement won’t stop you from forming an LLC in Connecticut, but it is a best practice. You benefit by being prepared and having everyone on the same page.

Connecticut Registered Agent Fee ($0-$300/year)

In Connecticut, you have options when choosing a registered agent, with costs ranging from $0 to $300 per year.

There is no fee if you decide to act as your registered agent. You simply need to provide your name and address. This option gives you full control, but it can expose your personal information.

Hiring a professional Connecticut registered agent service typically costs between $100 and $300 annually. These services can help protect your privacy and ensure compliance with state requirements. For example, LegalZoom charges around $249 annually, while ZenBusiness offers services for about $199.

Northwest Registered Agent stands out with a special offer. They provide free services for the first year if you use them to help form your LLC. After that, their fee is $125 per year, which is competitive compared to other services.

EIN Cost in Connecticut ($0 from the IRS website)

You may need an Employer Identification Number (EIN) to operate an LLC in Connecticut. The good news is that obtaining your EIN is free. You can get it directly from the IRS without any cost.

You can apply for your EIN online through the IRS website. The process is simple and can often be completed in just a few minutes.

It’s important to note that having an EIN is essential if you plan to hire employees or open a business bank account. Even if you don’t have employees, having an EIN can help with various business transactions.

If you prefer to apply by phone, you can call the IRS. However, ensure you are authorized to receive the EIN and can answer any questions about your application.

Annual Report Fee ($80/annually)

Every Limited Liability Company (LLC) must file an annual report in Connecticut. This report keeps your business information current and accurate. The fee for submitting this report is $80 each year.

The annual report is a requirement for all LLCs registered in the state and is important for maintaining good standing with the Secretary of State. In July 2020, the fee for the report was increased from $20 to $80.

Ignoring the annual report can lead to penalties and the risk of your LLC being dissolved. Staying on top of this requirement is essential for your business’s future. It ensures that your information remains accessible and accurate to the public.

Set a reminder for yourself so you don’t miss the due date. This will keep your LLC compliant and operating smoothly in Connecticut.

Fictitious Name/DBA Cost in Connecticut (varies)

If you’re running a business in Connecticut and want to use a name different from your legal business name, you must file for a DBA (Doing Business As). This allows you to officially operate under a fictitious name.

The cost of filing a DBA in Connecticut varies by town. Generally, fees range from $5 to $10. Some locations may charge slightly more, but most will stick to this range.

Filing fees for a DBA are a one-time charge. Once you file for it, the DBA does not expire, meaning you won’t need to pay to renew it later.

You must register your DBA at the local town clerk’s office. Each town manages its rules, but the steps are similar across Connecticut. Make sure to check if there are any additional regulations where your business is located.

LLC Name Reservation Fee in Connecticut ($60)

Reserving your business name is important when starting an LLC in Connecticut. This process ensures that your desired name is available and protected while you prepare to file your LLC paperwork.

The fee for reserving a name is $60. You can complete this by submitting a Reservation Application to the Secretary of State. The name reservation lasts for 120 days. This gives you time to finalize your business plans.

You can reserve your name yourself or use a Company Name Reservation Service. If you choose to handle it yourself, running a name search first is wise. This helps confirm that the name is not already taken, ensuring your chosen name is truly available.

Once you submit your application and pay the fee, you’ll be one step closer to securing your LLC. If your plans change, remember you may need to reserve a new name later.

Connecticut Certificate of Legal Existence ($50)

The Certificate of Legal Existence, often called a Certificate of Good Standing, is important for your LLC in Connecticut. It proves that your business is active and compliant with state regulations.

When you apply online, you can obtain this certificate for a fee of $50. The cost may be higher if you choose a long form or an expedited option. The Connecticut Secretary of the State issues the certificate.

This document is often required for various business transactions. For instance, banks may ask for it to open a business account, and other parties might need it to verify that your LLC is in good standing.

It’s a straightforward process. When applying, you will need to provide some basic information about your LLC. After your request is processed, you will receive the certificate electronically or by mail.

Connecticut Foreign LLC Registration Fee ($120)

If you want to register a foreign LLC in Connecticut, you’ll need to pay a fee of $120. This fee applies to businesses formed in another state that want to operate legally in Connecticut.

To get started, you must submit a Foreign Registration Statement to the Connecticut Secretary of State. This form is essential for gaining the right to conduct business in the state.

Keep in mind that there may be other costs involved in addition to the registration fee. For example, an annual report fee of $80 must be paid each year between January 1 and March 31. If you need to amend your registration or update details, there are additional fees, such as $120 for an amendment and $20 for notice of change.

Connecticut State Business License Fees (varies)

Connecticut does not require a general state business license. However, most businesses need specific licenses or permits to operate legally. These can include local zoning permits, professional certifications, and safety inspections.

The costs for these licenses and permits can vary widely. Each license type may have its fee structure based on the nature of your business and location. Be prepared to factor these costs into your budget.

The Connecticut government offers a useful digital business assistant tool to help you identify what you need. This tool can help you find the exact licenses required for your business type.

Connecticut LLC Taxes (varies)

In Connecticut, your LLC is subject to various taxes, which can lead to differing annual costs. Here are some common taxes you might encounter:

• Federal Taxes: Applied to your business income.
• State Income Tax: Based on taxable income, rates range from 3% to 6.99%.
• Local Income Tax: This can vary by municipality.
• Business Taxes: Additional taxes depending on your type of business.
• Self-Employment Taxes: Required for self-employed owners.
• Sales and Use Tax: Applicable if you sell goods or services.
• Payroll Tax: Required if you employ workers.
• Property Tax: If your LLC owns property, this tax applies.

Connecticut LLC reinstatement fee ($120)

If your LLC in Connecticut is dissolved, you can reinstate it by paying a $120 reinstatement fee. This fee covers the annual report required for the current year.

To start the reinstatement process, you must submit a completed Reinstatement Package along with the payment.

In some cases, you might also owe additional penalties. It’s essential to get everything sorted to avoid any further delays.

If you choose expedited processing, there will be an extra fee of $50. This can speed up the reinstatement if you need it done quickly.

Connecticut LLC dissolution fee ($0)

Dissolving your LLC in Connecticut is a straightforward process. One key point to note is that the dissolution fee is $0. This means you do not have to pay any state fees when you decide to close your business.

To start the dissolution, you need to file an Article of Dissolution. This document informs the state that you are officially ending your LLC. The filing form is on the Connecticut Secretary of State’s website.

Follow the procedures outlined in your LLC operating agreement. This usually includes voting on the decision to dissolve the LLC. It’s important to follow these rules carefully to avoid any potential issues later on.

Connecticut LLC Change of Registered Agent fee ($50)

Changing your registered agent in Connecticut costs $50 for most business entities. This payment is necessary when you submit the Change of Agent form.

If your business is a nonprofit, the fee is $20, which is lower than for other entities. Ensuring the correct form is used based on your business type is crucial.

You can change the registered agent by mail or in person. Ensure that your new registered agent meets the state requirements, including being a resident of Connecticut or a qualified business entity.

The Secretary of State will process your request after you pay the fee and submit the form. Once the change is official, you will receive confirmation. Remember to keep your records updated to avoid any issues with the service process.

What is the Cheapest Way to Start Connecticut LLC?

Starting an LLC in Connecticut can be done in a few different ways. You can handle everything yourself, hire a service, or work with an attorney. Each option has its costs.

Doing it yourself is the cheapest route. You will need to file the Connecticut Certificate of Organization. The state filing fee is $120, and it is a one-time payment. You will file it directly with the Secretary of State of Connecticut.

If you prefer to hire a service like Northwest, they typically charge around $29 plus state fees. While this option saves you time, it does increase your overall cost.

Using an attorney is the most expensive choice. Attorneys charge different rates, but you can expect to pay hundreds of dollars for their help. This may be worth it if you need legal advice or have a complicated situation.

Though doing it yourself saves the most money, it requires navigating the paperwork. If you make mistakes, you could face delays or extra costs. Using a service can save time but comes with added expense. Hiring an attorney provides support but at a higher price.

Should You Use an LLC Formation Service in Connecticut?

An LLC formation service in Connecticut can save you time and reduce stress. With services like Northwest Registered Agent, you get expert help. This can be especially useful if you are unfamiliar with the legal requirements.

• Privacy Protection: One key benefit is safeguarding your privacy. Many formation services include registered agent services, which help keep your personal information off public records, allowing you to protect your identity while running your business.
• Peace of Mind: Another advantage is the peace of mind you gain. By using a professional service, you won’t have to worry about missing important deadlines or making errors in your paperwork. They ensure you stay compliant with state regulations, freeing you up to focus on growing your business.
• Expert Guidance: You also benefit from access to experts. Many formation services offer free consultations with LLC formation professionals and attorneys, providing valuable guidance for any legal questions you might encounter as you start your company.

On the flip side, a formation service comes with a fee. It’s essential to weigh the costs against the benefits. The additional services may be worth it if you have more complex needs. But if your business is straightforward, you might handle the formation yourself.

Frequently Asked Questions

How much does it cost to dissolve an LLC in Connecticut?

Dissolving an LLC in Connecticut is free of charge; there’s no fee required to file the Certificate of Dissolution with the state.

How much does it cost to reinstate an LLC in Connecticut?

Reinstating an LLC that has been dissolved or revoked costs $120. You must also file any required annual reports and fees due when the LLC was inactive.

Do I need a business license if I have an LLC in Connecticut?

Yes, depending on your business activities, you may need specific licenses or permits to operate legally. Check local regulations to see what is required for your specific industry.

Is Connecticut a good state to form an LLC?

Connecticut offers benefits like good legal protections for LLC owners and a strong local economy. However, consider the state’s higher taxes and costs of living when deciding if it is the right choice for you.

How much does it cost to dissolve an LLC in Connecticut?

To dissolve your LLC in Connecticut, you must file a Certificate of Dissolution and pay a filing fee of $50. Ensure all outstanding taxes and obligations are settled before filing.

Do I need to hire an attorney to form an LLC in Connecticut?

You are not required to hire an attorney, but it can be helpful. An attorney can ensure that all documents are filled out correctly and that you comply with state laws.

Should I hire an LLC formation service in Connecticut?

Hiring an LLC formation service can save you time and help you avoid mistakes. These services often streamline the process and can assist with ongoing compliance needs.

Are there penalties for paying my fees late in Connecticut?

Yes, late fees may incur penalties. If you fail to pay your annual report fee on time, you could face additional charges, which can increase over time.

What happens if I do not file my Connecticut LLC annual report?

If you do not file your annual report, your LLC may be marked as inactive or dissolved. This will affect your ability to operate legally in Connecticut and could result in losing liability protections.