When you form your LLC in Connecticut, you’ll have to pay certain costs to officially register your business with the state.
In addition to formation and ongoing costs, there will be business expenses like using a registered agent service, building a website, getting business insurance, and so on. So, how much does an LLC cost in Connecticut?
In this guide, we break down the costs associated with forming your LLC, from the Connecticut LLC filing fee to LLC upkeep prices and other business expenses.
Cost of Forming an LLC in Connecticut
When forming your LLC, there are a few different costs that you may incur. These include the filing fee, LLC formation service cost, operating agreement draft, and registered agent costs.
Connecticut LLC Filing Fee
To form an LLC in Connecticut, one of the first things you will do is file a Certificate of Organization with the Connecticut Secretary of State. The filing fee, sometimes referred to as the “state fee,” for the Certificate of Organization is $120.
If you elect to use an LLC formation service, you will pay their service fee on top of the $120 state fee. These service fees typically start around $29 and increase depending on any additional services you decide to purchase.
Most people choose to use an LLC formation service to create their LLC. The cost is low and they guarantee that your filing is done correctly. Check out our #1 rated LLC service:
For more details on the formation process, check out our Connecticut LLC Formation guide.
Connecticut Registered Agent and Registered Office
Every Connecticut LLC is required to appoint a registered agent. A registered agent is a person or entity you assign to receive tax forms, legal documents, or government correspondence on your LLC’s behalf. Registered agent services can cost around $130 per year or more.
Your registered agent can be:
- A registered agent service (most common)
- Yourself (not recommended)
- Another member of the LLC
- A business attorney
If you haven’t yet formed your LLC, we recommend using Northwest Registered Agent to form, as you will receive one year of registered agent services for free with a $29 formation.
Connecticut LLC Operating Agreement
An operating agreement is a formal document that outlines an LLC’s ownership and responsibilities. In Connecticut, LLCs are not required to file an operating agreement with the state. It is, however, recommended, as they can help prevent or mitigate future conflicts.
Since there’s no state filing requirement, your only cost comes from the drafting of the document. Most single-member and simple multi-member LLCs elect to draw up this paperwork themselves.
If you decide to draft the document yourself, use a free operating agreement template or document builder as a guide. That takes your total cost to $0.
Optional Connecticut LLC Formation Costs
Along with the fees associated with forming an LLC, there are several optional LLC formation costs that you may encounter.
- Reserve a Name for Your LLC – Before registering your Connecticut business name, you must first check to ensure it’s unique and available by doing a business entity name search. If you aren’t ready to file your LLC paperwork with the state, you can reserve the name for 120 days. The name reservation fee is $60.
- Doing Business As (DBA) Name – If you want to operate your business under a different name than your LLC, you will need to file a DBA. In Connecticut, this is often referred to as the trade name. You will register your trade name with the city you operate out of primarily. The filing fee for a trade name is $10.
- Expedited Connecticut LLC Filing – Connecticut offers expedited filing of your Certificate of Organization for an additional $50 fee per filing.
- Certified Document Copies – Obtaining certified copies of your Connecticut business documents that are on file with the state validates that your business information is true and correct. The fee for requesting a certified copy is $55.
- Certificate of Existence – A Certificate of Existence verifies that your LLC has filed all necessary paperwork and is legally authorized to conduct business in Connecticut. Many banks and lenders require a copy of this certificate for their files. The fee for requesting this certificate is $40-$55, depending on whether you want a short-form or long-form certificate.
Connecticut LLC Cost and Fees Over Time
There are a few things you need to address to keep your LLC in good standing with the state year after year. Each of these comes with costs and fees.
Annual LLC Fee Connecticut
Each year, your Connecticut LLC must submit an annual report to the Secretary of State.
Your LLC’s annual report is due by March 31 of each year. The filing fee for this report is $80.
If you fail to file your annual report by the March 31 deadline, your LLC’s status with the state will be changed to “not in good standing.” While Connecticut does not charge a penalty fee for late filings, failure to report for one year could result in the dissolution of your business. See our Connecticut LLC Annual Report article for a more in-depth overview.
Registered Agent Fee
If you use a professional registered agent service, you will pay their fee annually. Pricing will depend on the service provider that you use, but usually costs around $130/year. Using a registered agent service will save you time and the hassle of handling important legal documents and filings for the long term.
If you act as your own registered agent there are no maintenance fees. However, for privacy and compliance purposes, we don’t recommend being your own registered agent.
We recommend Northwest Registered Agent, which offers a year of its registered agent service for free when you use the company to form your LLC ($29 + state fees).
General Costs of Running a Business
Operating a business will obviously come with more than just LLC costs. These are a few of the expenses that you may run into.
Business Bank Account
An LLC separates your personal assets from your business assets. This separation is called the corporate veil. That corporate veil ensures that if your business is sued or incurs debts, your personal assets will be protected from any liabilities.
Commingling (mixing) your personal bank account with your business can pierce your LLC’s corporate veil, which means you are no longer protected by the separated entity of your LLC.
Using a separate bank account to accept payments and pay business expenses is the only way to prevent commingling funds and piercing the corporate veil.
Recommended article: Check out TRUiC’s Best Small Business Banks guide to find the best bank account for your business.
Business Permits and Licenses
Depending on the type of business you operate, your business may need the proper permits and licenses to legally operate in Connecticut.
Alongside the permits required, your business may require industry-specific licenses to operate legally. Examples include licenses like the Connecticut real estate license, Connecticut insurance license, Connecticut adjuster license, and so on.
See TRUiC’s How to Get a Business License in Connecticut article for more information.
Every business needs a website. There’s no better way to get in front of your customers, build your brand, and grow your business.
Fortunately, the cost and difficulty of creating a business website have come down over the years. Websites are now simple to build and cheap to keep up.
We advise small business owners to use the GoDaddy Website Builder. It’s an extremely simple to use system, creates great business websites, and only costs about $15/month.
Having the proper insurance coverage can potentially save your entire business if there is a loss, accident, or lawsuit.
A few of the most common business insurance policies include:
- General liability insurance – Protects against claims of personal injury, physical injury, property damage, and more. This is the most common of all business insurance policies. Learn more about general liability insurance.
- Professional Liability Insurance – Protects against claims of inaccurate or negligent work. It’s most common in the “professional” space where businesses offer services or advice to other businesses or consumers. Learn more about professional liability insurance.
- Commercial Workers’ Compensation Insurance – This type of insurance protects your employees from on-the-job injuries or illnesses. This coverage is required if you have one or more employees. Learn more about Workers’ Compensation insurance.
The cost of business insurance varies widely based on business type, size, location, and other factors. Getting a quote is the only way to understand the actual cost of insurance for your LLC.
We recommend NEXT Insurance to help protect and grow your Connecticut LLC. It features instant coverage with competitive pricing that’s tailored to fit your business’ needs.
LLC Cost in Connecticut FAQ
Do you have to pay ongoing fees for an LLC every year?
Connecticut requires LLCs to file an annual report with the state. The filing fee for this report is $80.
What’s the cheapest way to form an LLC?
Can you start a Connecticut LLC for free?
No. All applicants must pay the state filing fee to start a Connecticut LLC. The filing fee is $120.
How much does a registered agent cost?
Do I need to pay a franchise tax for my Connecticut LLC?
No. The state no longer requires Connecticut businesses to pay the biennial Business Entity Tax. Final returns were due March 15, 2020.
How much does an LLC formation service provider cost?
It depends on the LLC formation company you choose. We recommend Northwest Registered Agent, which starts at $29, plus the $120 state fee, and includes the first year of registered agent services for free.