The kind of business entity you want to form is one of the first choices you’ll need to make if you’re thinking about launching a business in Connecticut. The limited liability company (LLC) is a common choice for many business owners. But how much does it cost in Connecticut to form an LLC?
In comparison to other states, Connecticut has one of the lowest formation costs for LLCs. A new LLC must pay a filing charge of $120 and an annual report fee of $20. Additionally, there can be extra costs if you employ a registered agent service.
Although creating an LLC in Connecticut is not very expensive, it’s important to remember that there may be other expenses related to running a corporation. For instance, you might have to pay taxes, buy company insurance, and get all relevant licenses and permissions.
LLCs are typically not thought of as being pricey when compared to other business entities. They have a number business advantages, such as pass-through taxation, limited liability protection for the owners, and managerial freedom. Even while creating and managing an LLC has significant fees, the advantages frequently outweigh the disadvantages.
How Can I Pay My CT LLC Annual Fee? LLCs must submit an annual report to the Secretary of State’s office in Connecticut. $20 is the annual report cost. LLCs can use the Connecticut Business Registry to submit their annual report online. The filing cost may be paid online with a credit card or an e-check afterward.
One of the few states, Connecticut, forbids LLC domestication. As a result, if your LLC was established in another state and you want to move it to Connecticut, you must dissolve your LLC in the original state and create a new LLC in Connecticut.
Your particular business needs will determine whether you should form an LLC or a single proprietorship. A sole proprietorship lacks any liability protection for the owner despite being the easiest and least expensive company organization to set up. An LLC, on the other hand, provides owners with less liability protection and may be a preferable choice for companies that face greater liability risks.
In conclusion, compared to other states, Connecticut has very inexpensive startup costs for LLCs. Even while creating and managing an LLC has significant fees, the advantages frequently outweigh the disadvantages. LLCs based in Connecticut must submit an annual report and pay a $20 charge. The choice between an LLC and a sole proprietorship depends on your particular business needs and is not permitted in Connecticut.