Jake Lawson here. Connecticut doesn’t require a general business license, but they do have a mandatory $100 tax registration that catches many new business owners off guard. Plus, with 169 municipalities, local licensing requirements can vary dramatically. Let me walk you through what you actually need versus what companies want to sell you.
Connecticut’s business licensing landscape is relatively straightforward at the state level, but local requirements can be complex. The key is understanding what’s truly required versus what services want to charge you to research.
Connecticut’s Business License Reality Check
The good news: No general business license required by the state
The catch: $100 mandatory tax registration for every business
The complexity: 169 municipalities with varying local requirements
The opportunity: Most simple businesses need minimal licensing beyond tax registration
Bottom line: Your LLC might need just the $100 tax registration, or it might need several licenses depending on your industry and location.
The One Registration Every Connecticut LLC Needs
Connecticut State Tax ID Registration (Form REG-1)
Cost: $100
Required for: Every business operating in Connecticut
Includes: Sales tax registration if applicable
File through: myconneCT portal or mail
Processing time: 1-2 weeks
What it gets you:
- Connecticut State Tax ID Number (different from federal EIN)
- Sales and use tax permit (if selling taxable goods/services)
- Legal permission to operate a business in Connecticut
- Access to Connecticut tax filing systems
Jake’s insight: This $100 registration is Connecticut’s version of a general business license, even though they don’t call it that. You cannot legally operate without it.
Connecticut Tax Registration Process
Information You’ll Need:
- Your LLC’s exact legal name
- Federal EIN number
- Business address in Connecticut
- Description of business activities
- Anticipated start date
- Expected annual revenue
Registration Steps:
- Access myconneCT portal at portal.ct.gov/DRS/myconneCT/myconneCT
- Complete Form REG-1 (most common business form)
- Pay $100 registration fee
- Receive CT State Tax ID within 1-2 weeks
- Set up ongoing tax filing requirements
Common mistake: Assuming you can start business activities before registration. Connecticut requires this before you begin operations.
State-Level Occupational Licenses
Connecticut requires specific licenses for regulated professions and industries:
Professional Services Requiring Licenses:
- Healthcare: Doctors, nurses, dentists, therapists, pharmacists
- Legal services: Attorneys, paralegals (in some contexts)
- Financial services: CPAs, tax preparers, insurance agents
- Real estate: Agents, brokers, appraisers, property managers
- Construction: Contractors, electricians, plumbers, HVAC
- Beauty services: Barbers, cosmetologists, nail technicians, massage therapists
Industry-Specific Licenses:
- Food service: Restaurants, catering, food trucks, retail food
- Childcare: Daycare centers, preschools, family daycare homes
- Transportation: Taxis, limousines, moving companies
- Security services: Private investigators, security guards
- Environmental: Waste management, water treatment, environmental consulting
How to Research Your Requirements:
Use Connecticut’s digital business assistant to get a customized checklist for your business type.
If your business isn’t in regulated industries: You probably don’t need state occupational licenses beyond the tax registration.
Municipal Licensing: The 169-Municipality Challenge
Connecticut has 169 municipalities, each with potentially different licensing requirements:
Common Municipal Requirements:
- Business registration: Additional local business registration
- Zoning compliance: Certificates of occupancy or zoning permits
- Health permits: Food service, personal care services
- Signage permits: Business signs and advertising
- Fire safety permits: Occupancy permits, sprinkler systems
High-Requirement Areas:
Major cities (Hartford, New Haven, Bridgeport, Stamford, Waterbury):
- More comprehensive licensing requirements
- Higher fees ($50-$500 range)
- Stricter zoning enforcement
- Additional health and safety requirements
Smaller towns:
- Simpler requirements (often just zoning clearance)
- Lower fees ($25-$100 range)
- More personal service from town clerks
- Faster processing times
How to Research Municipal Requirements:
- Identify your municipality (city or town where you’ll operate)
- Contact the town/city clerk directly
- Ask specifically about:
- Business registration requirements
- Zoning clearance needs
- Industry-specific permits
- Home-based business regulations
Jake’s experience: Town clerks are usually helpful and knowledgeable. A 10-minute phone call beats paying $99 for “license research services.”
Connecticut Sales Tax Registration
Important: Sales tax registration is included in your $100 state tax registration, but you need to understand the requirements.
When You Need to Collect Sales Tax:
- Physical products: Selling tangible goods to Connecticut customers
- Digital products: Software, downloads, streaming services (in some cases)
- Certain services: Telecommunications, utilities, some repair services
- Online sales: If you have nexus (significant presence) in Connecticut
Sales Tax Rates:
- State rate: 6.35%
- Local rates: None (Connecticut doesn’t have local sales taxes)
- Special rates: Reduced rates for some items (clothing under $50, etc.)
Filing frequency depends on volume:
- Annual: Under $1,000 in annual tax liability
- Quarterly: $1,000-$10,000 in annual tax liability
- Monthly: Over $10,000 in annual tax liability
Federal Licenses (Most LLCs Don’t Need These)
Good news: Most Connecticut LLCs don’t need federal licenses.
Businesses That DO Need Federal Licenses:
- Transportation: Airlines, trucking companies, shipping
- Broadcasting: Radio, TV, telecommunications
- Financial services: Banks, investment advisors, money transmitters
- Healthcare: Drug manufacturing, medical devices
- Agriculture: Interstate transport of plants/animals, pesticides
- Import/export: Customs bonds, trade compliance
- Firearms/explosives: Manufacturing, sales, distribution
- Alcohol/tobacco: Manufacturing, importing, distribution
Everyone else: Just needs a federal EIN (free from IRS) and must file taxes.
Connecticut LLC Licensing Costs: Real Numbers
Guaranteed Costs (Every LLC):
- Connecticut tax registration: $100
- Federal EIN: Free (apply directly through IRS)
Typical Additional Costs:
- State professional licenses: $100-$500+ (varies by profession)
- Municipal business registration: $25-$200 (location-dependent)
- Zoning permits: $50-$300 (depends on municipality and use)
- Health permits: $100-$400 (food service, personal care)
- Signage permits: $25-$150 (if needed)
What Most LLCs Actually Pay:
Simple service businesses: $100 (just tax registration)
Professional services: $200-$600 (tax registration + professional license)
Retail businesses: $150-$400 (tax registration + municipal permits)
Food service: $300-$700 (tax registration + health permits + municipal licenses)
Home-based businesses: $100-$250 (tax registration + possible home occupation permit)
Industry-Specific Guidance
Online/Digital Businesses:
- Required: Connecticut tax registration ($100)
- Likely needed: Sales tax collection on Connecticut customers
- Probably not needed: Additional licenses unless in regulated industry (financial services, healthcare)
Professional Services:
- Required: Connecticut tax registration ($100)
- Often needed: Professional licensing ($100-$500)
- Consider: Professional liability insurance, municipal business registration
Retail Businesses:
- Required: Connecticut tax registration ($100) with sales tax permit
- Likely needed: Municipal business registration, zoning clearance
- Location-dependent: Signage permits, parking permits
Food Service:
- Required: Connecticut tax registration ($100)
- Always needed: Health department permits, food handler certifications
- Location-dependent: Municipal permits, zoning approvals, signage permits
Home-Based Businesses:
- Required: Connecticut tax registration ($100)
- Check locally: Home occupation permits (varies by municipality)
- Consider: Zoning compliance, parking restrictions, signage limitations
The Connecticut Home Business Landscape
Generally business-friendly: Connecticut allows many types of home-based businesses.
Typically Allowed from Home:
- Online businesses and e-commerce
- Consulting and professional services
- Small-scale crafts and art sales
- Tutoring and educational services
- Administrative and bookkeeping services
Usually Require Commercial Location:
- Food preparation and sales (except home bakeries with permits)
- Retail with regular customer visits
- Manufacturing with employees
- Auto repair and mechanical services
- Healthcare services requiring clinical space
Home Occupation Permit Requirements:
- Varies by municipality: Some require permits, others just zoning compliance
- Common restrictions: No employees, limited signage, adequate parking
- Typical cost: $25-$100 where required
Common Connecticut Licensing Mistakes
Mistake #1: Skipping the Required Tax Registration
Problem: Operating without Connecticut tax ID
Solution: File Form REG-1 before starting business operations
Mistake #2: Assuming No Municipal Licenses Are Needed
Problem: Missing local permit requirements
Solution: Contact your specific municipality directly
Mistake #3: Paying for Unnecessary License Research Services
Problem: Companies charge $99+ for basic internet research
Solution: Use Connecticut’s free digital business assistant and call municipalities directly
Mistake #4: Not Understanding Sales Tax Obligations
Problem: Failing to collect required sales tax
Solution: Understand your sales tax obligations during initial registration
Mistake #5: Confusing EIN with State Tax ID
Problem: Thinking federal EIN covers state requirements
Solution: Get both federal EIN (free from IRS) and Connecticut tax ID ($100)
Your Connecticut LLC Licensing Action Plan
Phase 1: State Registration (Week 1)
- Obtain federal EIN directly from IRS (free)
- File Form REG-1 through myconneCT portal ($100)
- Research professional licensing requirements for your industry
- Identify your municipality for local research
Phase 2: Local Requirements Research (Week 2)
- Contact your town/city clerk about local requirements
- Check zoning compliance for your business location
- Research health permits if applicable (food service, personal care)
- Identify signage requirements if planning business signs
Phase 3: Specialized Licensing (Week 3)
- Apply for professional licenses if in regulated profession
- File municipal applications as required
- Obtain health permits for food service or similar
- Complete zoning applications if needed
Phase 4: Business Launch Preparation (Week 4)
- Verify all licenses received and properly displayed
- Set up sales tax collection system if applicable
- Create license renewal calendar for periodic renewals
- Complete final business setup tasks
Connecticut Business Entity Tax (BET)
Additional consideration: Connecticut has a Business Entity Tax that may apply to your LLC based on gross receipts:
BET Rates:
- $0-$1 million: $0 tax
- $1-$5 million: $750 minimum
- $5-$100 million: 0.31% of gross receipts
- $100+ million: 0.675% of gross receipts
This is separate from licensing but important for budgeting.
When to Get Professional Help
Handle Yourself:
- Basic tax registration (Form REG-1)
- Federal EIN application
- Municipal requirement research
- Simple zoning inquiries
Consider Professional Help:
- Complex professional licensing
- Multi-municipality operations
- Food service with multiple permits
- Construction with multiple trade licenses
Definitely Get Help:
- Healthcare practice licensing
- Financial services registration
- Import/export businesses
- Environmental permitting
- Complex zoning variances
The Bottom Line on Connecticut Licensing
Connecticut’s licensing requirements are manageable with proper research. The $100 tax registration is mandatory for everyone, and additional licenses depend on your specific business and location.
Key insights:
- State tax registration ($100) is required for all businesses
- No general business license, but professional licensing varies by industry
- Municipal requirements vary significantly among 169 towns/cities
- Sales tax registration is included in state tax registration
- Home-based businesses have reasonable accommodation in most municipalities
Budget realistically: $100-$600 covers most Connecticut LLCs’ licensing needs, depending on industry and location.
Research strategy: Use free state resources and direct municipal contact instead of paying for “license research services.”
Ready to Get Licensed in Connecticut?
File your Connecticut tax registration →
Use Connecticut’s business assistant →
Get my complete Connecticut LLC guide →
Download my Connecticut licensing checklist →
Questions about Connecticut business licensing or need help navigating specific municipal requirements? Contact me directly—I’ve helped dozens of Connecticut entrepreneurs understand their actual licensing needs without overpaying for unnecessary research services.
Legal Disclaimer: This information is for educational purposes only and doesn’t constitute legal or tax advice. Connecticut business licensing requirements can change over time and vary by location and industry. Always verify current requirements with appropriate Connecticut agencies and consult qualified professionals for specific legal and tax matters.