Connecticut Business Registration Step by Step: State, Tax, Labor and Town Order

Most people searching for how to start a business in Connecticut expect one license from one office. That is not how it works. Connecticut has no general state business license. Instead, you register your entity with the Secretary of the State, register for taxes with the Department of Revenue Services (DRS), set up labor accounts if you will have employees, and then clear zoning and health requirements with your town. A regulated trade adds a license from the agency that oversees it.

This guide puts those steps in the order that prevents rework. It is informational content, not legal or tax advice. Talk with a Connecticut attorney and a CPA before you choose a structure, especially if you have partners, investors or income from other states.

Four facts that shape the whole process

• Registration is not licensing. A Certificate of Organization for an LLC registers the entity. It does not authorize you to practice a trade. Your DRS sales tax permit is a tax registration, not a license.
• Licensing depends on your trade. The Department of Consumer Protection, the Department of Public Health, the Connecticut Insurance Department, the Department of Banking and other agencies license specific industries. The Business.CT.gov New Business Checklist and the eLicense system are the starting points for finding yours.
• Connecticut has no county government. Counties were abolished in 1960. Your local units are towns and cities, local health departments and districts, and planning regions. If a form or checklist mentions a county office, the office you need is your town's.
• You will use several accounts. Business.CT.gov is the Secretary of the State portal. It links to tax and employment services and hosts the New Business Checklist, but DRS registration happens separately on myconneCT. Expect to create more than one login.

Step 1: Choose your structure and check the name

Your structure decides which filing you make, so settle it first. A sole proprietor files nothing with the Secretary of the State. An LLC files a Certificate of Organization (Domestic Limited Liability Company). A corporation files a Certificate of Incorporation (Domestic Stock Corporation).

Check the name before you pay for anything. The free business records search at service.ct.gov/business/s/onlinebusinesssearch shows whether a name is already registered or reserved. An LLC name must contain 'Limited Liability Company' or an abbreviation such as 'LLC' or 'L.L.C.', and it must be distinguishable on the record from every other registered or reserved name. Names that suggest a regulated activity, such as bank or insurance, require authorization.

If you need time to finish your paperwork, you can reserve a name for 120 days for $60. Reservation details are in the Business.CT.gov LLC forms and fees article.

Step 2: File the formation document

File online at Business.CT.gov. Connecticut's core formation fees are:

Entity	Formation filing	Fee	Yearly filing
LLC	Certificate of Organization	$120	Annual Report, $80
Corporation	Certificate of Incorporation, then Organization and First Report	$250, then $150	Annual Report, $150
Sole proprietor	None with the Secretary of the State	None	None

Most online filings are accepted automatically, and the state says expedited service is usually unnecessary. Expedited review costs $50 per transaction and is completed within 24 hours of receipt. It is available only for online filings, not mailed ones. The Secretary of the State does not publish a standard turnaround for ordinary filings, so confirm the status of your filing with the agency rather than assuming a date.

Every LLC and corporation must also appoint a registered agent. The agent must be either a Connecticut resident at least 18 years old or a business entity registered with the Secretary of the State. The agent's business address must be a usual place of business in Connecticut that is open during normal business hours with an authorized person present. A post office box or commercial mailbox does not qualify. You confirm or update the agent each year when you file the annual report.

Step 3: File a trade name certificate if you use another name

If you will do business under a name other than your own legal name or your registered entity name, you need a Trade Name Certificate. It is not filed with the Secretary of the State. You file it with the town clerk in the town where the business is primarily transacted. The fee is $20. The state explains the process in the Business.CT.gov trade names article.

Step 4: Get an EIN from the IRS

An LLC or corporation needs a federal Employer Identification Number (EIN) from the IRS for banking, tax filings and payroll. A sole proprietor without employees can often use a Social Security number, but many sole proprietors get an EIN anyway to keep business and personal finances separate. Apply through the IRS once your legal name is final.

Step 5: Register for sales tax with DRS on myconneCT

If you sell taxable goods or services, you need a Sales and Use Tax Permit from DRS before you start selling. The registration fee is $100. Register through myconneCT, which is separate from Business.CT.gov, and display the permit at each location where you sell. The state sales tax rate is 6.35%. DRS sales tax information is at portal.ct.gov/drs/sales-tax/tax-information, and the main DRS site is at portal.ct.gov/drs.

Step 6: Understand your state tax path

Your structure drives your state tax, and the rules differ enough that you should confirm them with DRS and a CPA. The general picture:

• LLCs taxed as partnerships or S corporations. Connecticut has no franchise tax or annual privilege tax on LLCs. These businesses may elect the optional Pass-Through Entity Tax with DRS. The election is annual and irrevocable for that year.
• LLCs taxed as corporations. These pay the Corporation Business Tax of 7.5% of apportioned net income, with a $250 minimum. They also pay a capital base tax that is being phased out: 0.16% for 2026, 0.11% for 2027, and none from 2028 (CGS 12-219). Companies with total income of $100 million or more on federal Form 1120 line 11, or that file in a combined unitary group, also pay a 10% surtax.
• Personal income. Connecticut's personal income tax is progressive, with seven brackets ranging from 2% to 6.99%.

Step 7: Set up labor accounts before you hire

If you will have employees, register with the Connecticut Department of Labor (DOL) for an unemployment insurance account, and set up new-hire reporting for each person you bring on. DOL registration is separate from the Secretary of the State and DRS, so add it to your list of accounts. Business.CT.gov links to employment services and is a useful starting point, but confirm the current registration steps, any fees and reporting deadlines directly with DOL. Federal payroll accounts are set up separately through the IRS.

Step 8: Clear town zoning, health and occupancy requirements

Local approvals are where many first-time owners get stuck, because the state does not handle them. Call or visit your town or city hall before you sign a lease or buy equipment. Ask about:

• Zoning: whether your use is allowed at the address, including home-based businesses.
• Health: any approval from your local health department or health district, particularly for food, personal services, or anything involving water or waste.
• Occupancy and other local permits: any building or occupancy permit for the space, plus local sign rules.

Local fees vary by municipality and are not listed in this guide, so check with the specific town office. Zoning, health and occupancy approvals may apply in addition to everything above.

Step 9: Get a trade license if your industry requires one

Check whether your trade requires a state license before you take paying work. Because Connecticut has no general business license, the regulator for your field is the agency to ask. The Department of Consumer Protection, the Department of Public Health, the Connecticut Insurance Department and the Department of Banking are the main examples. Requirements, application fees and any exam or education rules differ by trade, so confirm them with the agency that regulates your work.

The complete order at a glance

1. Choose your structure and check the name on Business.CT.gov.
2. File with the Secretary of the State. Sole proprietors skip this step.
3. File a Trade Name Certificate with the town clerk if you operate under a name other than your own ($20).
4. Get an EIN from the IRS.
5. Register for a DRS Sales and Use Tax Permit on myconneCT ($100) before you sell taxable goods or services.
6. If you are hiring, register with DOL for unemployment insurance and new-hire reporting.
7. Clear town zoning, health and local permits, and obtain any trade license your industry requires.

Annual upkeep

Registration is not a one-time event. Every LLC files an Annual Report with the Secretary of the State each year at $80. Every corporation files at $150. Business.CT.gov does not publish a single flat deadline. It shows each entity its own next due date in its account. Widely reported practice for LLCs is a January 1 to March 31 window, but check your own due date in Business.CT.gov rather than guessing. The annual report also confirms your registered agent information.

Where to get help

The Connecticut Small Business Development Center offers advising at ctsbdc.uconn.edu. The SBA's Connecticut page is at sba.gov/district/connecticut. Neither replaces a lawyer or CPA for your specific situation.

This guide is informational only and is not legal, tax or licensing advice. Fees, deadlines and rules change, and the agencies named here set the final requirements. For a structure choice, a tax election or a regulated trade, consult a qualified Connecticut attorney or CPA.