Last updated: May 3, 2026. CT 2026 LLC fees, PIT brackets, sales tax rate, PTET status, corporate income tax surtax extension, CT PFML 2026 contribution rates, Paid Sick Leave PA 24-8 phase-in, $16.94 indexed minimum wage, UI 2026 wage base, and agency-by-agency licensing structure verified against business.ct.gov, portal.ct.gov/drs, ctpaidleave.org, portal.ct.gov/dol, portal.ct.gov/dcp, portal.ct.gov/governor, and the Connecticut General Assembly Office of Legislative Research as of this date.

Starting a Business in Connecticut (2026): Licenses, Permits & Requirements

Connecticut is the second-richest state in the United States by per-capita personal income — and it shows in the operating environment. Three structural realities define starting a business in Connecticut in 2026 more than anywhere else in the Northeast: no county government anywhere in the state (CT abolished county government in 1960; all local permitting runs through 169 town and city halls), indexed annual minimum-wage increases (Public Act 19-4 ties the rate to the federal Employment Cost Index — the 2026 minimum wage is $16.94/hour, second-highest in the nation behind Washington’s $17.13), and a graduated income tax with seven brackets running 2% to 6.99% with a 2% Phase-Out Add-Back and tax-benefit recapture mechanism unique to CT and New York.

The good news: Connecticut’s structural compliance overhead is concentrated in a handful of agencies, not scattered across dozens. The Department of Consumer Protection (DCP) is the umbrella for HVAC, plumbing, electrical, home improvement, cosmetology, and real estate licensing. The Office of Early Childhood (OEC) handles all daycare. The Department of Energy and Environmental Protection (DEEP) covers pesticide applicators. The Department of Emergency Services and Public Protection (DESPP) licenses private investigators. The Department of Revenue Services (DRS) administers the 6.35% flat sales tax (one of the simplest sales-tax structures in the Northeast — no local sales taxes anywhere in CT). And LLC formation runs through one portal at business.ct.gov for $120.

The bad news: a tightly indexed minimum wage, the only state-administered Paid Family and Medical Leave program in southern New England, the new Paid Sick Leave expansion under PA 24-8 (which dropped the coverage threshold to 11+ employees on January 1, 2026, and expands to all employers on January 1, 2027), and CT’s CGS § 31-275 workers’ compensation rule that triggers at the very first employee — combined — make Connecticut one of the higher-effort payroll states in the country for businesses with even modest headcounts. Plan around the headcount thresholds; budget for the payroll stack.

Connecticut Business Requirements at a Glance

Requirement	Agency / Authority	Cost	Timeline / Notes
LLC Certificate of Organization	CT Secretary of the State	$120 (one-time)	Online filing at business.ct.gov; 1-3 business days
LLC Annual Report	CT Secretary of the State	$80 per year	Due January 1 – March 31 (uniform for all CT LLCs)
Trade Name (DBA)	Town clerk in the town of operation	~$10-$20 (varies by town)	5-year expiration for filings on/after January 1, 2025
Federal EIN	IRS	Free	Issued instantly online
Sales Tax Permit	CT Department of Revenue Services via myconneCT	$100 for 2-year permit	Required if selling taxable goods or enumerated services
Workers’ Compensation	CT Workers’ Compensation Commission under CGS § 31-275	Premium varies by NCCI class	Mandatory at first employee — no threshold
Connecticut Paid Family and Medical Leave (CT PFML)	CT Paid Leave Authority	0.5% of wages, employee-only	2026 cap = federal SS wage base $184,500 (max $922.50/yr)
Connecticut Paid Sick Leave (PA 24-8)	CT Department of Labor under CGS § 31-57r+	Accrual at 1 hr per 30 hrs, up to 40 hrs/yr	≥11 employees as of Jan 1, 2026; ALL employers as of Jan 1, 2027
Unemployment Insurance Tax	CT Department of Labor	1.9% new employer / $27,000 wage base (2026)	Experience-rated 1.1%-9.9% after Year 4
Connecticut Minimum Wage	CT Department of Labor under PA 19-4	$16.94/hour (2026)	Indexed annually to federal Employment Cost Index
Tipped Wage (Hotel/Restaurant Waitstaff)	CT Department of Labor under CGS § 31-60	$10.71 cash + max $6.23 tip credit (2026)	Total must reach $16.94/hr
Tipped Wage (Bartenders)	CT Department of Labor under CGS § 31-60	$13.81 cash + max $3.13 tip credit (2026)	Total must reach $16.94/hr
Home Improvement Contractor (HIC) Registration	CT Department of Consumer Protection under CGS § 20-419+	$220 for 2 years	Required for residential property work
New Hire Reporting	CT New Hire Reporting Center	Free	Within 20 days of hire date

How to Start a Business in Connecticut (Step by Step)

Step 1: Choose Your Business Structure

Connecticut recognizes the standard set of business structures. The right choice depends on liability exposure, tax treatment, and how you plan to grow:

• Sole Proprietorship — No state filing required (just a Trade Name with the town clerk if operating under a name other than your own). Owner is personally liable for all business debts. Default for a first-time freelancer or single-person operator.
• LLC (Limited Liability Company) — The default choice for most CT small businesses. Personal asset protection, flexible tax treatment, $120 to form, $80/year ongoing. Default tax treatment is pass-through, so business income flows to owners’ personal returns.
• S-Corporation — Can reduce self-employment taxes for profitable operating businesses. Requires forming a CT corporation first, then electing S-corp status with the IRS. Subject to CT’s optional Pass-Through Entity Tax at 6.99% (elective since 2024).
• C-Corporation — Subject to Connecticut’s Corporation Business Tax at 7.5% (8.25% on income over $100M) plus the 10% surtax on companies with $100M+ gross proceeds (extended through 2029). Better for businesses planning outside investment, ESOPs, or share issuance.
• Partnership — General partnership (GP), limited partnership (LP), or limited liability partnership (LLP). LP and LLP filings go through the Secretary of the State.

For most Connecticut small businesses starting out, an LLC is the right structure. The $120 formation cost is moderate (lower than New York’s $200, much lower than Massachusetts’s $500), the $80/year annual report is one of the lower recurring fees in the Northeast, and the personal-asset protection plus pass-through taxation gives flexibility as the business grows.

Step 2: Form Your Business at business.ct.gov

LLC Formation via Connecticut Secretary of the State

All Connecticut business entities are filed through the Secretary of the State, Commercial Recording Division. Online filings are processed at business.ct.gov:

Filing	Cost	Notes
Certificate of Organization (Domestic LLC)	$120	One-time formation fee
Foreign LLC Registration	$120	For out-of-state LLCs operating in CT
LLC Annual Report	$80	Due January 1 – March 31 every year
Articles of Incorporation (Stock Corporation)	$250 minimum	Plus organization tax of $0.01 per share over 20,000
Corporation Annual Report	$50-$435	Tiered; LLC fee is flat $80
Reserve a Business Name	$60	120-day reservation

How to file your LLC online:

1. Create an account at business.ct.gov
2. Search the business name database to confirm availability — the name must include “Limited Liability Company,” “L.L.C.,” or “LLC”
3. File your Certificate of Organization ($120) — designate a registered agent with a physical Connecticut street address
4. Online filings are typically processed within 1-3 business days; expedited processing is available for an additional fee

Annual Report — Uniform January 1 to March 31 Window

Connecticut LLCs file an Annual Report every year between January 1 and March 31. Unlike most states (which use the entity’s anniversary date), CT uses a single uniform window — every CT LLC, regardless of formation date, files in the same Q1 window. The fee is $80. File online at business.ct.gov. Failure to file can result in administrative dissolution.

Operating Agreement

Connecticut law does not require an LLC operating agreement, but it is strongly recommended. The agreement defines member rights, profit distribution, management structure, voting, and dissolution procedures. Keep it with your business records — it does not need to be filed with the state.

Trade Name (DBA) — 5-Year Expiration as of January 1, 2025

If your business operates under a name different from its registered legal name, you must file a trade name certificate with the town clerk in the town where your business is primarily conducted. Important change: as of January 1, 2025, trade name certificates expire 5 years after filing and must be renewed. The fee is approximately $10-$20 depending on the municipality. Track your renewal date — older trade names that haven’t been refiled may be lapsing in 2030.

Federal EIN

Apply for a free EIN at IRS.gov. Issued instantly online. Required to open a business bank account, hire employees, and file most tax forms.

Step 3: Get Required Licenses and Permits

No Statewide General Business License

Connecticut has no statewide general business license — there is no single “Connecticut business license” you apply for. However, many municipalities require local business permits or licenses. Because Connecticut has no county government, all local permitting goes through the city or town clerk. The 169 distinct town/city halls each have their own permit menus. Check your specific municipality:

• Bridgeport (largest city) — Business licenses through the City Clerk’s Office
• New Haven — Business licenses through the City Clerk; food trucks through Health Department
• Hartford (state capital) — Business licenses and permits through the Permits Office and Hartford Health Department
• Stamford (Fairfield County) — Business licenses through the City Clerk; Stamford Health Department for food
• Waterbury, New Britain, Norwalk, Danbury — Town/city clerk for trade name and local permits

Industry-Specific Professional Licenses

Connecticut concentrates professional licensing across five primary state agencies. Match your industry to the right one:

• Department of Consumer Protection (DCP) — HVAC, plumbing, electrical contractors; Home Improvement Contractor (HIC) registration; real estate; pharmacy; drug control. The largest trades-licensing umbrella.
• Office of Early Childhood (OEC) — daycare licensing under CGS § 19a-77+ for Family Child Care Homes, Group Child Care Homes, and Child Care Centers. Care 4 Kids subsidy administration.
• Department of Public Health (DPH) — Hairdresser/Cosmetician, Nail Technician, and Eyelash Technician licensing under CGS Chapter 387 (§§ 20-250+); food service permits delegated to 71 local health departments + 19 health districts; certain health-related professions.
• Department of Energy and Environmental Protection (DEEP) — pesticide applicator certification under CGS § 22a-54; landscape spraying; environmental compliance.
• Department of Emergency Services and Public Protection (DESPP) — Special Licensing and Firearms Unit licenses private investigators, security guards, alarm installers, and pistol permits under CGS § 29-153+.

Home Improvement Contractor (HIC) Registration

Connecticut requires Home Improvement Contractor (HIC) registration for any business performing work on residential property — including HVAC, electrical, plumbing, landscaping with hardscape, cleaning services with repairs, painting, roofing, and similar trades. Registration through DCP under CGS § 20-419+:

• HIC fee: $220 for a 2-year period
• Per-business registration: registers the entity, not individual employees
• No bond requirement: CT does not require a contractor surety bond for HIC
• Penalty for non-registration on residential work: contracts may be unenforceable, lien rights may be void under CGS § 20-429

Step 4: Register for State Taxes

Connecticut Income Tax — Seven Brackets, 2% to 6.99%

Connecticut has a graduated individual income tax with seven brackets. The 2024 tax cut (Public Act 23-204) reduced the bottom two marginal rates to 2% and 4.5%, where they remain for tax year 2026:

Single Filer Income	Married Filing Jointly	Rate
$0 – $10,000	$0 – $20,000	2.0%
$10,001 – $50,000	$20,001 – $100,000	4.5%
$50,001 – $100,000	$100,001 – $200,000	5.5%
$100,001 – $200,000	$200,001 – $400,000	6.0%
$200,001 – $250,000	$400,001 – $500,000	6.5%
$250,001 – $500,000	$500,001 – $1,000,000	6.9%
Over $500,000	Over $1,000,000	6.99%

Connecticut’s PIT is more complex than most states because of two unique add-back mechanisms. The 2% Phase-Out Add-Back recaptures the benefit of the 2% rate for moderate earners — beginning at $56,500 CT AGI for single filers (max $250 add-back) and $100,500 for MFJ (max $500). And the tax-benefit recapture applies to high earners, requiring them to pay the top 6.99% on all income (not just amounts above $500K single / $1M MFJ). Personal exemptions: $15,000 (single, phasing out above $30,000 CT AGI to $0 by $44,000); $24,000 (MFJ, phasing out above $48,000 to $0 by $71,000); $19,000 (Head of Household); $12,000 (married, both earning).

Connecticut Sales Tax — Flat 6.35% Statewide, NO Local Sales Tax

Connecticut’s sales tax is a flat 6.35% — and that is the only rate you collect anywhere in the state. CT is one of a small number of states with NO local sales tax. Compare to neighboring New York (state 4.0% + NYC 4.5% + MCTD 0.375% = 8.875%), Massachusetts (6.25% with local meals tax adders), and Rhode Island (7%). The simplicity is a real operating advantage:

• State sales tax rate: 6.35% (uniform statewide)
• No local sales taxes: Connecticut law does not authorize local sales tax
• Higher rate on luxury goods: 7.75% on motor vehicles over $50,000, jewelry over $5,000, and clothing/footwear items over $1,000
• Higher rate on prepared meals + beverages: 7.35% sales tax on prepared meals and certain beverages
• 1% room occupancy / hotel tax: in addition to the 15% Room Occupancy Tax administered separately
• Sales Tax Permit: $100 fee to register (valid 2 years, auto-renewed while account is active); register at myconneCT via the REG-1 application
• Filing frequency: Monthly, quarterly, or annual depending on tax liability
• Services: Connecticut taxes only specifically enumerated services (window cleaning, janitorial, landscaping, computer services, others) — many service businesses (salon labor, basic personal services) are NOT taxable; check DRS guidance for your industry

Corporate Income Tax — 7.5% Plus 10% Surtax Through 2029

Connecticut imposes a Corporation Business Tax on C-corporations:

• 7.5% on net income up to $100 million
• 8.25% on net income over $100 million
• 10% surtax on companies with $100 million+ gross proceeds (or filing as part of a combined unitary group), extended through 2029
• $250 minimum tax regardless of income

Pass-Through Entity Tax (PTET) — Now Elective Since 2024

Connecticut became the first state to enact a Pass-Through Entity Tax (PTET) in 2018 as a workaround for the federal SALT cap. Critical change: PTET became elective in 2024 (it was previously mandatory for all PTEs). The rate is 6.99% at the entity level. To elect, file the election with each year’s return. PTEs that pay the elective tax provide owners a credit for state taxes paid — preserving the federal deduction at the entity level instead of the owner level.

Employer Taxes — UI, PFML, Paid Sick Leave

Register for employer tax accounts through myconneCT:

• Unemployment Insurance (UI) Tax: 2026 wage base is $27,000 (up from $26,100 in 2025). New-employer rate dropped to 1.9% (down from 2.2% in 2025). Experience-rated rates after Year 4 range from 1.1% to 9.9%. CT applied a 1.125 rate-reduction divisor in 2026 to soften the wage-base increase. Public Acts 21-200 and 22-67 set the UI Trust Fund solvency framework.
• State Income Tax Withholding: Register through DRS to withhold CT state income taxes from employee paychecks. Use Form CT-W4.
• CT Paid Family and Medical Leave (CT PFML): 0.5% of wages — employee-only, no employer match. 2026 cap = federal Social Security wage base ($184,500), max contribution $922.50 per employee per year. Maximum weekly benefit $1,016.40 (60x state minimum wage). Employer remits, employee bears the cost. Register at ctpaidleave.org.
• Connecticut Paid Sick Leave (PA 24-8): coverage threshold dropped to 11+ employees on January 1, 2026 and expands to ALL employers (1+ employee) on January 1, 2027. Accrual at 1 hour per 30 hours worked, up to 40 hours per year. The “service worker” concept that limited the prior law was eliminated as of January 1, 2025 — covered employers must provide sick leave to all employees, with limited exceptions for “seasonal employees” (≤120 days/year).

Report new hires to the Connecticut New Hire Reporting Center within 20 days of hire date under CGS § 31-2c.

Step 5: Get Business Insurance

Workers’ Compensation — Mandatory at the First Employee

Connecticut requires workers’ compensation insurance for any employer with one or more employees under CGS § 31-275. There is no minimum-employee threshold (unlike Florida’s 4-employee threshold or Texas’s optional WC). Coverage is provided through the private insurance market — Connecticut has no monopolistic state fund. The CT Workers’ Compensation Commission (WCC) oversees compliance.

Status	Workers’ Comp Required?
1 or more employees (W-2)	Mandatory
Sole proprietor / single-member LLC, no employees	Not required (may elect)
Domestic workers (≥26 hours/week in private home)	Required under CGS § 31-275(10) carve-out
Independent contractors (genuinely 1099)	Not required for true ICs; misclassification risk applies

Penalties for failure to carry coverage include fines, stop-work orders, and personal liability for any work-related injuries. CT applies the IRS-style 20-factor test plus state-specific factors to challenge worker classification — agriculture and construction are heavily audited.

General Liability Insurance

While not always legally mandated, general liability insurance is essential. Most clients, contracts, and licensing boards (including the HIC registration) require proof of coverage. Industry standard: $1 million per occurrence / $2 million aggregate. Premium ranges $400-$3,000+/year for most small businesses depending on industry and revenue.

Connecticut-Specific Costs and Quirks Most New Operators Miss

The Indexed Minimum Wage Compounds

Connecticut’s $16.94/hour minimum wage in 2026 is the second-highest in the United States, behind only Washington’s $17.13. Public Act 19-4 indexes the rate annually to the U.S. Department of Labor’s Employment Cost Index — meaning the minimum wage will keep rising for the foreseeable future, regardless of legislative action. The 2026 increase was 3.6% ($0.59) from 2025’s $16.35. Plan compensation budgets accordingly; CT’s labor cost premium over neighboring NY ($16.50 statewide) and RI ($15.00) is real and durable.

Tipped-Wage Math Gets Granular

Connecticut maintains the tipped wage but separates it for waitstaff vs. bartenders under CGS § 31-60:

• Hotel/restaurant waitstaff: $10.71/hr cash wage + max $6.23/hr tip credit = $16.94 total minimum
• Bartenders: $13.81/hr cash wage + max $3.13/hr tip credit = $16.94 total minimum
• All other employees: $16.94/hr (no tip credit)

Employers must inform employees of the tip credit before claiming it and ensure cash wage + tips reach $16.94/hour. Insufficient tips = employer makes up the difference.

The 169 Town Halls Permit Wall

Connecticut has 169 distinct municipalities (cities and towns) and no county government since 1960. Every local building permit, food permit, mobile vendor license, parking variance, and zoning approval comes from the town hall — not a centralized county office. Operating across multiple CT towns means multiple permit applications, multiple fee schedules, multiple inspector relationships, and multiple political environments. A food truck running between Hartford and Stamford will pull permits from both health districts.

CT PFML Is Among the More Generous in the US

The Connecticut Paid Family and Medical Leave program offers up to 12 weeks of paid leave in a 12-month period plus an additional 2 weeks for serious health conditions related to pregnancy. Maximum weekly benefit is $1,016.40 in 2026 (capped at 60x the state minimum wage of $16.94). The 0.5% employee-only payroll tax is a modest contribution relative to the benefit replacement. Funding starts Day 1 of employment.

Paid Sick Leave Is Now Almost Universal

Connecticut was the first state in the US to enact paid sick leave (Public Act 11-52 of 2011) — and PA 24-8 of 2024 dramatically expanded it. The phase-in:

• January 1, 2025 — employers with 25+ employees
• January 1, 2026 — employers with 11+ employees ← currently in effect
• January 1, 2027 — ALL employers with 1+ employee

For small operators (1-10 employees), 2027 is the full-coverage year. The “service worker” concept that limited the original 2011 law was eliminated as of January 1, 2025 — when you become covered, you provide sick leave to all employees, not just service workers. Plan accrual systems before your headcount crosses the threshold.

HIC Trap for Out-of-State Contractors

Out-of-state contractors expanding into CT (especially HVAC, plumbing, electrical, landscaping, painting, roofing) routinely miss the Home Improvement Contractor (HIC) registration. Holding a state trade license is not enough for residential work — you also need the $220/2-year HIC registration. Operating without HIC on residential property can void your contract enforceability and lien rights under CGS § 20-429.

Trade Name 5-Year Renewal Is New

As of January 1, 2025, town-clerk Trade Name (DBA) certificates expire 5 years after filing — a change from the prior indefinite term. If you registered a DBA in 2020 expecting it to last forever, plan to refile by 2030. New DBAs from 2025 forward have built-in 5-year sunset.

Connecticut Business Guides by Industry

Every industry has different licensing, permit, and insurance requirements in Connecticut. Choose your business type for a detailed breakdown:

• How to Start a Cleaning Service in Connecticut — CGS § 12-407 sales tax taxability split (window cleaning explicitly taxable, janitorial services typically taxable), insurance, NCCI codes
• How to Start a Food Truck in Connecticut — DPH food protection rules, 71 local health departments + 19 health districts, town-by-town mobile vendor permits, commissary requirements
• How to Start a Daycare in Connecticut — Office of Early Childhood (OEC) licensing under CGS § 19a-77+, Care 4 Kids subsidy, ECE Workforce Registry, ratios, background checks
• How to Start an HVAC Business in Connecticut — DCP’s 14-class S/D/B/G/OE/PP HVAC license matrix under CGS § 20-330, EnergizeCT HPIN heat pump rebates up to $10,000, A2L refrigerant transition, HIC registration
• How to Start a Hair Salon in Connecticut — DCP cosmetology licensing, hours requirements, establishment license, sales tax treatment
• How to Start a Landscaping Business in Connecticut — DEEP pesticide applicator certification under CGS § 22a-54, CBYD 2 working days notice, sales tax on landscape services, Tree Wardens
• How to Start a Private Investigation Business in Connecticut — DESPP Special Licensing and Firearms Unit licensing under CGS § 29-153+, recording-consent split (CGS § 52-570d civil + § 53a-189 criminal), bond requirements

Connecticut Business Resources & Official Links

Resource	What It’s For
CT Secretary of the State — Business Services	LLC/Corporation formation, entity search, annual reports, name reservation
CT Department of Revenue Services (DRS)	Income tax, sales tax, withholding, employer registration, PTET election
myconneCT	Online portal for tax registration, filing, and payments
CT Department of Labor (DOL)	Unemployment insurance, wage standards, Paid Sick Leave administration
CT Paid Leave Authority	CT PFML registration, contributions, claims
CT Workers’ Compensation Commission (WCC)	Workers’ comp under CGS § 31-275, employer compliance
CT Department of Consumer Protection (DCP)	HVAC, plumbing, electrical, cosmetology, real estate, HIC registration
CT Department of Public Health (DPH)	Food service permits (delegated to local health), certain professions
CT Office of Early Childhood (OEC)	Daycare licensing, Care 4 Kids subsidy, ECE Workforce Registry
CT Department of Energy and Environmental Protection (DEEP)	Pesticide applicator certification under CGS § 22a-54, environmental compliance
CT DESPP — Special Licensing and Firearms Unit	Private investigator and security guard licensing under CGS § 29-153+
EnergizeCT	Utility-funded efficiency rebates, Heat Pump Installer Network
Call Before You Dig (CBYD)	Required 2 working days before excavation under CGS § 16-345
IRS EIN Application	Free federal tax ID number

Frequently Asked Questions

How much does it cost to start an LLC in Connecticut?

Forming an LLC in Connecticut costs $120 (Certificate of Organization filed with the Secretary of the State at business.ct.gov). After formation, you pay an $80 annual report each year between January 1 and March 31. Total first-year cost: $200; $80/year ongoing. Compared to neighboring states: lower than NY ($200 + LLC publication requirement) and significantly lower than MA ($500 + $500/year), but higher than RI ($150 LLC + $50/year).

What is Connecticut’s sales tax rate in 2026?

Connecticut’s sales tax rate is a flat 6.35% statewide. Connecticut has no local sales taxes — the rate is the same everywhere. Higher rates apply to specific items: 7.75% on motor vehicles over $50,000, jewelry over $5,000, and clothing over $1,000; 7.35% on prepared meals and certain beverages. Connecticut taxes only specifically enumerated services — many service businesses (salon labor, basic personal services) are not subject to sales tax. Window cleaning, janitorial, landscaping, and computer services are taxable.

What is Connecticut’s minimum wage in 2026?

Connecticut’s minimum wage is $16.94 per hour effective January 1, 2026 — the second-highest statewide minimum wage in the United States, behind Washington ($17.13). The increase from $16.35 was 3.6% under Public Act 19-4, which indexes the rate annually to the federal Employment Cost Index. Tipped wage: $10.71/hour for hotel/restaurant waitstaff (with $6.23 max tip credit) and $13.81/hour for bartenders (with $3.13 max tip credit). Total compensation must reach $16.94/hour.

Does Connecticut require workers’ compensation?

Yes — Connecticut requires workers’ compensation for any employer with one or more employees under CGS § 31-275. There is no minimum threshold. Coverage is through the private insurance market (no monopolistic state fund). Sole proprietors and LLC members without employees are not required to carry coverage but may elect to do so voluntarily. Penalties for non-compliance include fines, stop-work orders, and personal liability for any work-related injuries.

What is Connecticut Paid Family and Medical Leave (CT PFML)?

CT PFML is a state-administered paid leave program providing up to 12 weeks of paid leave in a 12-month period (plus 2 additional weeks for serious health conditions related to pregnancy). 2026 contribution rate is 0.5% of wages — employee-only, no employer match. The wage cap matches the federal Social Security wage base ($184,500 in 2026), so the maximum annual contribution is $922.50 per employee. Maximum weekly benefit: $1,016.40 (capped at 60x the state minimum wage). Administered by the quasi-public CT Paid Leave Authority at ctpaidleave.org.

Does Connecticut have a Paid Sick Leave law?

Yes. Connecticut was the first state in the US to enact paid sick leave (Public Act 11-52 of 2011), and Public Act 24-8 of 2024 dramatically expanded the law. Phase-in: 25+ employees as of January 1, 2025; 11+ employees as of January 1, 2026; ALL employers (1+) as of January 1, 2027. Accrual is at 1 hour per 30 hours worked, up to 40 hours per year. The “service worker” concept that limited the prior law was eliminated as of January 1, 2025 — covered employers must provide sick leave to all employees, with limited exceptions for “seasonal employees” (working 120 days or fewer per year).

What is Connecticut’s income tax rate in 2026?

Connecticut has a graduated income tax with seven brackets ranging from 2% to 6.99%. Single filer brackets (2026): 2% on $0-$10,000; 4.5% on $10,001-$50,000; 5.5% on $50,001-$100,000; 6% on $100,001-$200,000; 6.5% on $200,001-$250,000; 6.9% on $250,001-$500,000; 6.99% over $500,000. MFJ thresholds roughly double. Connecticut also imposes a 2% Phase-Out Add-Back at moderate incomes (beginning $56,500 single / $100,500 MFJ) and a tax-benefit recapture for high earners. Personal exemption: $15,000 single (phasing out above $30,000). Pass-Through Entity Tax (PTET) at 6.99% became elective in 2024.

Do I need a business license in Connecticut?

Connecticut has no statewide general business license — there is no single “CT business license” you apply for. Many municipalities (towns/cities) require local business permits or licenses. Because Connecticut has no county government, all local permitting goes through 169 distinct town/city halls. Industry-specific state licensing runs through DCP (HVAC, plumbing, electrical, cosmetology, real estate, HIC), OEC (daycare), DPH (food, certain health professions), DEEP (pesticide applicators), and DESPP (private investigators).

Does Connecticut have a DBA / trade name requirement?

Yes. If your business operates under a name other than its registered legal name, you must file a trade name certificate with the town clerk where your business is primarily located. The fee is typically $10-$20 (varies by town). Important change: trade name certificates filed on or after January 1, 2025 expire after 5 years and must be renewed. Older DBAs that have been in place indefinitely may need re-examination.

What is the Home Improvement Contractor (HIC) registration?

HIC registration is required for any business performing work on residential property in Connecticut — including HVAC, plumbing, electrical, landscaping with hardscape, painting, roofing, cleaning services with repairs, and similar trades. Registration through DCP under CGS § 20-419+. Fee: $220 for 2 years. Per-business registration (not per-employee). Operating without HIC on residential property work can void your contract enforceability and lien rights under CGS § 20-429. The HIC requirement applies to residential property only — commercial-only contractors do not need HIC.