Do I need to register with the CT Department of Revenue Services if I just formed an LLC?

In most cases, yes. Forming the LLC with the Secretary of State creates the legal entity; registering with the Connecticut Department of Revenue Services through myconneCT creates your tax accounts (sales tax, withholding, business entity tax obligations). The two registrations are separate and both are required.

How do I get a Connecticut sales tax permit?

Register online through the Department of Revenue Services' myconneCT portal. You will need it before you make your first taxable sale if you sell tangible goods or taxable services in Connecticut, where the statewide sales tax rate is 6.35%.

I'm a solo freelancer — do I need an EIN?

If you have no employees and operate as a sole proprietor, you can generally use your Social Security number. But an EIN is free from the IRS, takes minutes to obtain, and is required the moment you hire anyone, form an LLC or corporation, or elect S-corporation status — so most freelancers get one on day one.

When are my first estimated tax payments due as a new business owner?

Federal and Connecticut estimated payments follow the same quarterly schedule: April 15, June 15, September 15, and January 15. If you start mid-year, your first payment is due on the next upcoming date — you do not wait until the following April.

Should my new Connecticut LLC elect S-corporation status right away?

Not automatically. The S election can save on self-employment tax once profits are consistently above roughly the low-five-figure range, but it adds payroll, a separate tax return, and Connecticut pass-through entity tax considerations. Run the numbers for your actual profit level first — the election can be made later.

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New Business

Starting a Business in Connecticut: 2026 Tax Registration Guide

Forming the business is the easy part. The expensive mistakes happen in the registrations nobody told you about — the tax accounts, permits, and filings that start the clock the day you open. Here is the complete 2026 checklist for Connecticut, in the order you should actually do it.

1. Choose the structure before you register anything

Every registration below asks for your entity type, so decide first: sole proprietorship, LLC, S corporation, or C corporation. For most Connecticut small businesses the real decision is LLC vs. S-corp taxation — the LLC gives you liability protection with default pass-through taxation, while the S election can reduce self-employment tax once profits are consistently healthy, at the cost of payroll filings and a separate return. Our LLC taxation guide walks through the math. Do not elect S status "just because" on day one; you can elect later when the numbers justify it.

2. Get your EIN from the IRS — free, 15 minutes

Apply online at irs.gov for an Employer Identification Number. It is free and issued immediately. You need one if you will have employees, form an LLC or corporation, or elect S-corp status. Even solo freelancers usually get one on day one — it keeps your Social Security number off vendor forms and bank paperwork. Never pay a third-party site for an EIN; the IRS issues them free.

3. Register the entity with the Connecticut Secretary of State

LLCs, corporations, and other formal entities register online through the state's business portal (business.ct.gov). Sole proprietorships operating under their own legal name generally skip this step; if you use a trade name, register it with your town clerk. Keep the stamped confirmation — banks and the DRS will ask for it.

4. Register with the CT Department of Revenue Services — the step people miss

Forming the entity does not register you for taxes. Separately, register with the Connecticut Department of Revenue Services through its myconneCT online portal (ct.gov/drs). This single registration creates the state tax accounts your business needs — sales and use tax, withholding, and any business-entity tax obligations. Do this before you make your first sale or run your first payroll, not after.

5. Sales and use tax permit — who actually needs one

You need a Connecticut sales tax permit if you sell tangible personal property or taxable services in the state — retail, contractors selling materials, restaurants, online sellers with Connecticut customers. Connecticut's statewide rate is 6.35%. Pure service businesses (consulting, design, most professional services) generally do not collect sales tax, but confirm your specific service against the DRS taxable-services list rather than assuming. Register through myconneCT before your first taxable transaction.

6. Hiring anyone? Two more registrations

The moment you hire your first employee — including yourself, once you elect S-corp status and must run payroll — you need:

Connecticut withholding registration (through myconneCT) so you can withhold state income tax from wages.
Connecticut unemployment insurance registration with the Department of Labor.

Independent contractors do not trigger these, but misclassifying employees as contractors is one of the most expensive mistakes a new business can make — when in doubt, get the classification right before the first paycheck. Our year-end planning checklist covers the payroll paperwork you will need to keep clean.

7. Estimated taxes start immediately — not next April

New business owners are often shocked by their first April: no employer withheld anything, so the whole year's tax is due at once, plus penalties. Avoid it by paying quarterly estimates from the start — federal and Connecticut both follow the April 15 / June 15 / September 15 / January 15 schedule, and if you start mid-year your first payment is due on the next upcoming date. Our self-employment tax guide explains how to size the payments so you neither overpay all year nor owe penalties.

8. Put every deadline on a calendar now

Registration is the beginning, not the end: quarterly estimates, sales tax returns (monthly, quarterly, or annual depending on volume), payroll filings, the annual report with the Secretary of State, and your income tax return all have their own clocks. Our Connecticut tax filing deadlines page keeps the full calendar in one place — bookmark it.

9. Set up records on day one

Open a separate business bank account before the first dollar moves, pick an accounting method (most small businesses use cash basis), and start the receipt habit immediately: every expense logged with date, amount, and business purpose. Our tax document checklist is the template. Clean books from day one are what turn legitimate expenses into defensible deductions — reconstructing a year in April is how deductions get lost.

10. The five mistakes that cost new CT businesses the most

Registering the LLC but never registering with DRS — then collecting sales tax (or not collecting it) with no permit on file.
Commingling funds — paying personal bills from the business account, which can pierce the LLC's liability protection.
Skipping estimated payments year one — the April surprise, plus underpayment penalties.
Electing S-corp status too early — paying for payroll and an 1120-S before profits justify it.
DIY-ing the first payroll — withholding, unemployment, and new-hire reporting have sharp edges; one quarter of professional payroll costs less than one penalty notice.

The bottom line: entity → EIN → Secretary of State → DRS/myconneCT → sales tax permit (if applicable) → employer accounts (if hiring) → quarterly estimates → clean books. Do it in that order and there are no surprises. Starting a Connecticut business this quarter? The highest-ROI hour you will spend is a planning session before the registrations go in — structure and elections are cheap to get right on day one and expensive to fix in year two.

Eagle Expert Services provides tax preparation, accounting, and business licensing services in Middlebury, Connecticut. This article is general information, not tax advice — talk to a qualified professional about your situation.

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