Skip to content

Start a Business in Connecticut

Costs, permits, taxes, and requirements for CT.

Cost rank
43rd of 50
112% of the national average · tied with 1 other state
State income tax
3-6.99%
Charged on top of federal income tax
Sales tax
6.35%
You collect it on taxable sales and remit it to the state
LLC filing fee
$120
One-off, paid to the Secretary of State · 21st most expensive of 50 (median $100)

Where Connecticut sits on cost

Cheapest third to most expensive third, by startup cost index. Hover a state for its index and rank.

CT Lower cost Mid Higher cost

What's different in Connecticut

Connecticut is a small, mature, expensive market sitting between two much larger ones, which sets the strategy before anything else does: there is rarely an untapped customer base here, so a new business grows by taking work from an incumbent rather than by finding an empty niche. Towns tax business equipment and furnishings as personal property, so the fit-out and the van are recurring tax items rather than one-off purchases. The state's geography is commuter-shaped, and a service area drawn around a town often misses that its residents spend their working days, and much of their money, in another state entirely.

A share-taking market
Mature and well served, so the offer needs a reason to switch rather than a gap to fill.
Equipment is taxed annually
Towns assess business personal property, so tools, fit-out and vehicles keep costing after purchase.
Commuter geography
Residents earn and often spend elsewhere; draw the catchment from behaviour, not from the map.

Business Guides for Connecticut

All 53, cheapest first. Ranges are what that business actually costs in CT.

Under $10K 17

$10K – $50K 19

$50K and up 17

Get a personalized cost estimate for Connecticut

Calculate Costs

Business Requirements in Connecticut

1

Register Your Business

File with Connecticut Secretary of State. LLC fee: $120

2

Get Business License

Most cities require a general business license ($50-$300).

3

Get EIN

Free from IRS. Required for bank accounts and taxes.

4

Register for Sales Tax

State rate: 6.35%. Local taxes may apply.

5

Get Business Insurance

General liability protects from lawsuits. Often required by landlords.

Frequently Asked Questions

Q.01 How much does it cost to start a business in Connecticut?
Startup costs in Connecticut are 12% higher than the national average. LLC filing costs $120, plus business license ($50-$300). Total varies by business type.
Q.02 Does Connecticut have income tax?
Connecticut has a state income tax rate of 3-6.99%.
Q.03 What is the sales tax in Connecticut?
The state sales tax in Connecticut is 6.35%. Local taxes may apply.
Q.04 How do I form an LLC in Connecticut?
File Articles of Organization with the Secretary of State (fee: $120). You'll also need an Operating Agreement and EIN from the IRS.

Share the Connecticut numbers

Browse Other States