Connecticut works well if your customers, contracts, or physical operations are actually in the state. This guide covers what a Connecticut LLC costs in year one and after, the registered agent and annual report rules, and when you are better off forming in Wyoming or Delaware instead.
Who Connecticut suits
Connecticut is not a low-cost, no-nexus state like Wyoming. It makes sense when you have a real reason to be there: a US co-founder or team based in Connecticut, a physical address, a bank relationship, or clients who expect a Connecticut-registered entity. If none of that applies to you, you are paying Connecticut's fees without getting anything Wyoming would not give you for less.
If your business is fully remote, has no US-based staff, and has no specific tie to Connecticut, read the Wyoming or Delaware section below before you file.
What it costs in year one
Connecticut's LLC filing fee is $120. That fee sits on top of whichever PowerLaunch plan you choose. Processing typically takes about a week.
| Plan | Plan price | Connecticut filing fee | Year one total |
|---|---|---|---|
| Launch | $295 | $120 | $415 |
| Run | $1,995 | $120 | $2,115 |
| Scale | $2,995/yr (or $329/mo) | $120 | $3,115/yr |
If you need your EIN faster than the standard non-resident timeline, the expedited EIN add-on is $295 on Launch or Run. Scale includes expedited EIN already.
What it costs after year one
Connecticut LLCs owe an annual report with a state cost of $80. This is separate from PowerLaunch's plan fee and is paid at cost, with no markup.
| Plan | Plan renewal | Connecticut annual fee | Year two total | Files the report for you? |
|---|---|---|---|---|
| Launch | $295 | $80 | $375 | No, you or your team file it |
| Run | $1,995 | $80 | $2,075 | Yes, included |
| Scale | $2,995/yr | $80 | $3,075 | Yes, included with a dedicated bookkeeper |
Launch keeps your registered agent, mailbox, and business address active, but it does not include filing the annual report itself. You would need to handle that filing yourself or upgrade if you want PowerLaunch to do it. Run and Scale both include the annual state report filing as part of the plan.
Registered agent requirement
Connecticut requires every LLC to keep a registered agent with a physical Connecticut address on file with the state. This agent receives legal and state correspondence on your behalf. All three PowerLaunch plans include registered agent service, so this is covered regardless of which plan you pick. If you ever change registered agents outside PowerLaunch, you are responsible for updating the state record yourself.
Annual report
The $80 annual report is a recurring state requirement, separate from any federal tax filing. Missing it can put your LLC out of good standing with Connecticut, which can affect banking and contracts down the line. Due dates and any late penalties can shift, so check Connecticut's own filing portal for your specific due date rather than relying on a fixed calendar assumption.
State income tax position
An LLC by default is a flow-through entity. The LLC itself generally does not pay federal income tax, and the same flow-through treatment usually applies at the state level. Whether you owe anything to Connecticut depends on whether your LLC has income connected to Connecticut activity. If you are a non-resident founder with no US-based operations or employees in the state, your Connecticut tax exposure is often limited, but this depends on your specific facts. Connecticut's own tax authority is the right place to confirm your situation, and a licensed tax professional consultation is included on the Run and Scale plans if you want that checked against your actual numbers.
Separately, if your LLC is single-member and foreign-owned, you still have a federal filing obligation regardless of which state you form in: Form 5472 with a pro forma 1120, due by 15 April. This is a federal requirement, not a Connecticut one, and it applies whether or not the LLC has any income.
When Wyoming or Delaware is the better choice
Connecticut is a reasonable pick when you have genuine ties to the state. It is usually not the cheapest or simplest option if you do not.
| Factor | Connecticut | Wyoming | Delaware |
|---|---|---|---|
| Filing fee | $120 | Lower, check current fee | Higher for corporations, check current fee |
| Annual state cost | $80 report | Typically lower flat fee | Franchise tax can be higher for corporations |
| Best fit | Real Connecticut presence or contracts | Remote founders, no US nexus | Startups raising venture money, C-corps |
| Processing time | About 1 week | 1 to 3 business days | Varies, check current processing times |
If your business is fully remote with no specific link to Connecticut, Wyoming generally costs less to form and less to maintain every year after. If you are planning to raise venture capital or want a C-corp structure investors are used to seeing, Delaware is usually the more familiar choice to that audience, even though its ongoing franchise costs can run higher than Wyoming's. Connecticut sits in between: choose it because of an actual operational reason,
