An LLC with two or more members is classified for federal tax purposes as either a corporation or a partnership. An LLC classified as a partnership is subject to the Business Entity Tax of $250 provided it is required to file an annual report with the Connecticut Secretary of the State.
What is Connecticut business entity tax?
The CT business entity tax is a tax required of all limited liability companies that operate in the state of Connecticut. The business entity tax costs $250 and is due every two years.
What is a CT annual report?
An annual report is a report you must file yearly containing vital information about your business. Connecticut law requires annual report filings for all corporations, nonstock corporations, limited liability companies, limited liability partnerships and limited partnerships.
Do you have to file a Connecticut LLC tax return?
Unlike the default pass-through tax situation, when an LLC elects to be taxed as a corporation, the company itself must file a separate tax return. The State of Connecticut, like almost every other state, taxes corporation income. Connecticut calls this a corporation business tax.
Do you have to pay business entity tax in Connecticut?
Any Connecticut LLCs (and out-of-state LLCs doing business in Connecticut) don’t have to pay a Business Entity Tax (BET) anymore. More information is available here: CT Department of Revenue: Connecticut Business Entity Tax Sunset. Sales and use taxes are due if you sell goods or taxable services in Connecticut.
How to start a limited liability company in Connecticut?
If you want to start and run a Connecticut limited liability company (LLC), you’ll need to prepare and file various documents with the state. This article covers the most important ongoing reporting and state tax filing requirements for Connecticut LLCs. The State of Connecticut requires you to file an annual report for your LLC.
Can a LLC file as a corporation or partnership?
LLC Filing as a Corporation or Partnership A Limited Liability Company (LLC) is an entity created by state statute. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owner’s tax return (a disregarded entity).
