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by Mike Vestil 

Connecticut LLC Fees: What And How Much Are They?

Forming a limited liability company (LLC) in Connecticut is a smart choice for entrepreneurs and small business owners. LLCs offer tax benefits, personal liability protection, and provide owners and managers with flexibility that most other business entities can’t. 

Despite their many advantages, the paperwork and fees associated with forming an LLC can be overwhelming. Luckily, figuring out how to start an LLC is often easier and cheaper than most people think, and we’re to show you the main fees you should expect to pay and how often.

We’ll cover:

  • Business name reservation fees
  • Statutory agent fees
  • Certificate of organization fees
  • Sales tax registration fees
  • Business license fees in Connecticut
  • Connecticut LLC fees for drafting an operating agreement
  • Connecticut LLC annual fees
  • Total cost of LLC fees Colorado
  • Additional FAQs

Are you ready to form an LLC? Let’s get started!

Business Name Reservation Fees

Connecticut is home to over 200,000 unique businesses. With so many organizations out there, the business name you want may already be taken. Since you’re forming an LLC, you need to ensure that your organization includes “Limited Liability Company,” “LLC,” “L.L.C.,” “LC,” or “L.C.” in its name. 

Also, your LLC can’t contain words like “trust,” “bank,” “insurer,” or “insurance company” (if you are any of these things, contact the Secretary of State’s office for more guidance), or any other title that’s misleading. You can’t use anything that implies that you’re a government entity, such as “FBI” or “FDA.”

Before you begin the filing procedure, check Connecticut’s business records search to see if your name is available. If it is, you can reserve it for 120 days while getting everything else for $60. Reserving your business name means you have exclusive rights to it, so no one else can use it and beat you to the punch. 

If your desired name is taken, don’t be disheartened. Sure, you’ll have to use a different business name on all of your legal paperwork (e.g., your articles of organization and operating agreement), but you don’t have to use it in everyday conversation. You can use a “Doing Business As” name instead and build brand recognition with an identity your friends, followers, and prospects will remember you by. The average cost of a DBA name in Connecticut varies from city to city but is usually around $10.

You’ll also want to make sure you’re not violating anyone’s trademark. While you may be able to register your LLC name with the Secretary of State, that doesn’t give you carte blanche to use it beyond signing legal and financial documents. For example, while “Fresh Crisp Apple LLC” may be available, you risk trademark infringement if you’re marketing your services using just “Apple.” 

To cover your bases, look up your business name and your DBA name on the Trademark Electronic Search System (TESS) database to make sure it’s available.

Statutory Agent Fees

Your statutory agent (also known as a registered agent) is a person or commercial entity responsible for receiving any legal documents and state notices on behalf of your LLC. Your statutory agent can be any person or entity with a physical address in Connecticut. However, they cannot just have a P.O. Box.

When your LLC is officially formed, its physical address becomes publicly available. For privacy reasons, many business owners use a commercial registered agent service instead. It won't cost you anything if you decide to keep your statutory agent in-house. If you want to work with a commercial registered agent service, their fees are typically around $125/yr.

Certificate Of Organization Fees

Once you’ve selected your business name and statutory agent, you’re ready to file your certificate of organization (sometimes known as the articles of organization). You need to file these legal documents with the Secretary of State to form your LLC. While they sound official, they mostly just require you to fill out your organization’s basic information, including:

  • Your organization’s name and address
  • Your “Doing Business As” designation, if applicable
  • The names and contact information of your organizer and officers
  • Your registered agent’s name and address
  • The purpose of your business
  • Annual report contact information

Double-check this document before you submit it. If you make any errors, you may be required to refile later. The filing fee for your certificate of organization is $120.

Sales Tax Registration

Connecticut’s main state-level license is its sales and use tax permit. If you’re operating a lodging house, hotel, or motel, are renting, selling, or leasing goods, or sell any kind of taxable service, you need a sales and use tax permit to do so. Even if you’re only making sales for one day, like at a trade show or flea market, you need to obtain a sales and use tax permit.

To get a permit, you’ll need to provide the following:

  • Legal business name
  • Your business phone number, email, and mailing address
  • Employer identification number (EIN) or social security number
  • Business entity type
  • The nature of your business

The filing fee for a sales and use tax permit is $100. If you have multiple locations, you’ll need a permit for each of them.

Business License Fees In Connecticut

The state of Connecticut doesn’t require a general business license. However, some cities or counties may have business license requirements of their own, so check your local government website for more information. Also, certain occupations require specific licenses, permits, and registration forms. You can find a complete list on the Connecticut State’s Department of Consumer Protection page.

Connecticut LLC Fees For Drafting An Operating Agreement

An operating agreement is a formal document that outlines your LLC's rules and regulations. In a way, it’s like your organization’s constitution. 

Organizations in Connecticut aren’t required to submit an operating agreement. However, we strongly recommend all businesses have one, even if you’re a single-member LLC with no intention of ever hiring an employee. 

Your operating agreement can make you think of your business in a whole new light and may require you to answer questions you weren’t already asking yourself—but should be!

You can refer to your operating agreement if you ever need to resolve a legal or financial dispute. Without one, these decisions may be left up to the courts, and their rulings might be in your or your organization’s best interest. 

Here are a few questions your operating agreement should answer:

  • What are the powers and responsibilities of members?
  • How are profits and losses divided?
  • What are the ownership percentages?
  • Who has voting rights?
  • What are your liability clauses?
  • How are new members inducted?
  • How are memberships transferred?

Just in case, you should also create a plan outlining how to dissolve an LLC. No one wants to think that their business may fail, but it never hurts to have a plan if it does. 

Creating an operating agreement is free. However, you should also consider hiring an attorney to look it over and make sure everything is legally sound.

Connecticut LLC Annual Fees

Getting your LLC up and running requires some work on your end, but once it is, you don’t have too much to worry about besides remaining in good standing. To do this, you must comply with the local, state, and federal requirements. 

One of these requirements is to file your annual report. The information you need to include in this report is very similar to that of your certificate of organization. Your annual report costs $80 to file, and you file it online every year between January 1 and March 31.

Compared to some states, $80 is a great deal! Delaware LLC fees are $300, Massachusetts  LLC fees are $500, and California LLC fees are $800 or more!

Total Cost of LLC Fees Colorado

Here’s the complete list of Colorado’s LLC fees and how often they’re due:

Fee Type

Cost

HOW OFTEN

Business name reservation

$60

One time

DBA name designation

$10 on average

One time

Statutory agent fees

$0 if you do it yourself, or $125

Annually

Certificate of organization

$120

One time

Sales tax registration fees

$100

Annually

Business license fee

Varies

Varies

Operating agreement costs

$0 if you do it yourself

One-time

Annual fees

$80

Annually

Additional FAQs

Still have more questions about LLC fees in Connecticut or questions forming an LLC in general? We’re here to help!

Are Connecticut Registration Foreign LLC Fees The Same As Domestic?

LLCs are domestic organizations that do business in one state. If you want to do business in another state, you need to register as a foreign LLC with the state you wish to operate in. Usually, some aspects of forming a foreign LLC will cost you a little more. However, that’s not typically the case in Connecticut. 

Here’s what Connecticut’s foreign LLCs cost:

Fee Type

Cost

HOW OFTEN

Business name reservation

$60

One time

DBA name designation

$10 on average

One time

Statutory agent fees

Around $125 if you’re using with a commercial registered agent

Annually

Certificate of organization

$120

One time

Sales tax registration fees

$100

Annually

Business license fee

Varies

Varies

Operating agreement costs

$0 if you do it yourself

One-time

Annual fees

$80

Annually

How Much Does It Cost To Change Your Business Address?

If you’re changing addresses, the filing fee is $50.

How Much Does It Cost To Change Your Statutory Agent?

LLCs change statutory agents all the time. If you need to change yours, it costs $50.

Should Your LLC Or DBA Name Also Be Your Domain Name?

It doesn’t have to be. However, many businesses discover that the majority of their customers find them online. Check to see if your business name’s URL is available with who.is. This site will show you if it’s available and for how much for:

  • .com
  • .net
  • .org
  • .co
  • .io
  • .app
  • .live

If another organization is already using a domain name for “.com,” you could always go with “.org,” or one of the other options instead.

Final Thoughts On Connecticut LLC Fees: What And How Much Are They?

Forming an LLC in Connecticut may seem intimidating initially, but it’s much easier and usually more affordable than you think. Now that you know and understand all the costs associated with starting and maintaining your LLC, you’re one step closer to starting a successful business!

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About the author 

Mike Vestil

Mike Vestil is an author, investor, and speaker known for building a business from zero to $1.5 million in 12 months while traveling the world.

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