I run a small online store from New Hampshire and I'm looking to form an LLC in Connecticut because that's where most of my customers are. I know the basic filing fee is around $120, but are there any hidden or extra costs I should expect? Like registered agent fees, annual reports, or anything else that out-of-state folks specifically get hit with? Appreciate any real-world experience.
LLC Fees
Are there extra costs when registering an out-of-state LLC in Connecticut?
CT doesn't charge extra just because you're from out of state. The filing fee is the same $120. But you'll need a registered agent with a physical CT address, and those run $50-$300/year. That's not a state fee, just a practical cost.
Don't forget the annul report. It's $80 due by March 31st every year. Miss it and you get a $50 late fee. Also, if you're doing business in CT, you might need to register for sales tax if you're selling tangible goods. That's free to register but then you've got filing obligations
Why CT though? If you're in NH and just have customers there, you might not even need to register in CT unless you have a physical presence. But I'm not a lawyer, so...
Thanks, all. I should clarify: I do have a small warehouse in CT for fulfillment, so I'm pretty sure I need to register. The registered agent and annual report costs are what I was worried about. Any other sneaky fees?
If you have a warehouse, you definitely need to register. Also consider local property tax on business personal property (inventory, equipment). That varies by town and can be a surprise. Not a state registration fee but a cost.
Oh yeah, the property tax on business personal property is a big one. Towns like Hartford and Bridgeport have high mill rates. You'll have to file a declaration with the assessoR by November 1st each year. It's a hassle.
Also, if you're forming the LLC yourself online, the state's business portal is pret ty straightforward. No need to pay a service. But if you use a service like LegalZoom, they'll charge you extra. Just an FYI.
Extra costs? Only if you count the therapy bills from dealing with CT's bureaucracy. Kidding... mostly. But seriously, the annual report is easy to forget. Set a calendar reminder.
Good call on the property tax. I hadn't thought of that. I'll look into the mill rate for the town where my warehouse is. Thanks for the heads up, everyone.