Connecticut LLC Taxes (2026)

Understand Connecticut LLC taxes in 2026, including federal classification, state tax registration, sales tax, payroll accounts, recurring fees, and local obligations.

Connecticut LLC taxes depend on federal tax classification, owners, income, employees, sales activity, and whether the business sells taxable goods or services. The $120 Certificate of Organization does not register every tax account.

Educational note: This guide is for general informational purposes only. It is not legal, tax, accounting, or financial advice. Confirm current requirements with IRS, Connecticut DRS, Department of Labor, and qualified professionals.

First tax decision

For many Connecticut LLCs:

File Certificate -> get EIN if needed -> choose tax classification/bookkeeping -> register DRS accounts if required -> register employer accounts if hiring -> file federal and Connecticut returns -> file annual report Jan. 1-Mar. 31

Federal tax classification

An LLC is a state legal entity. Federal tax treatment is separate.

The Connecticut tax filings can depend heavily on that classification, so bookkeeping should be set up before money starts moving.

Sales and use tax

If the LLC sells taxable goods or taxable services in Connecticut, it may need a sales and use tax permit. DRS lists the permit fee as $100.

Connecticut sales tax is simpler than states with many local sales tax rates because DRS says there are no additional sales taxes imposed by local jurisdictions. But the business still needs to know whether its products, services, exemptions, marketplace sales, or remote sales create registration and filing duties.

Pass-through entity tax

Connecticut has pass-through entity tax rules that can apply to partnerships and S corporations. The details can change by tax year and by election/status, so multi-member LLCs and LLCs taxed as S corporations should confirm the current DRS rules with a tax professional.

Do not assume that an LLC has no Connecticut tax return just because it is not taxed as a C corporation.

Employer taxes

If the Connecticut LLC hires employees, review:

• EIN
• Connecticut wage withholding
• Unemployment registration
• New hire reporting
• Workers’ compensation
• Payroll filing frequency

Payroll accounts should be active before wages are paid.

Common tax mistakes

Confusing EIN with Connecticut tax registration

EIN is federal. DRS registration is separate.

Ignoring pass-through entity rules

Multi-member LLCs and S corporation LLCs need tax-specific review.

Forgetting sales tax returns after getting a permit

Once registered, the business may have filing obligations even for low or zero activity periods.

Treating the annual report as a tax return

The $80 annual report is a Secretary of the State filing, not a DRS tax return.

Tax FAQ

Does every Connecticut LLC need a sales tax permit?

No. It depends on taxable sales and nexus.

How much is the Connecticut sales tax permit?

DRS lists the sales and use tax permit fee at $100.

Does Connecticut have local sales tax?

DRS says Connecticut does not have additional sales taxes imposed by local jurisdictions.

Is EIN free?

Yes, when requested directly from IRS.

Official resources

• Connecticut DRS sales and use tax information
• Connecticut DRS register your business
• Connecticut pass-through entity tax
• Connecticut annual report information
• IRS EIN application