How to Get a Business License in Connecticut?

Business License in Connecticut

When you register your LLC or corporation in Connecticut, the operational aspect of such an entity will be governed by the Connecticut General Statutes. Registration of a company in this state doesn’t automatically permit business transactions within the state, as there is another key requirement to be fulfilled. This requirement deals with obtaining appropriate Connecticut business licenses and permits. It is important to consider the fact that operating without required licenses can result in penalties, legal action, or even dissolution of the said entity. A Connecticut business license is not just a mandatory legal compliance, but can also increase your company’s credibility.

Who needs a Connecticut business license?

Once you register your company with the Connecticut Secretary of the State (SOS), you will need to apply for and obtain a Connecticut business license. According to the Connecticut General Statutes, most forms of entity structures, like limited liability companies, limited liability partnerships, corporations, sole proprietorships, and non-profit organizations, will need to apply for a license. Even home-based businesses will be required to obtain necessary licenses and home occupation permits. If you are planning to move your company to this state or register a foreign entity, then you will have to conduct a Connecticut business license search and accordingly apply for permits and licenses within your county and city.

What business license do I need in Connecticut?

If you have decided to register a new business or relocate your existing company to Connecticut, then applying for a Connecticut business license becomes necessary. The type of license and permit required by your company will depend on several factors, including the jurisdiction where your company is based and the primary business activity. Unlike Delaware or Nevada, Connecticut doesn’t issue a statewide general business license. However, you might need to obtain a Connecticut business license once you register your company with the Office of the Secretary of State. There are multiple categories of licenses and permits applicable in this state. Let’s try to understand the categories and what licenses you may be required to apply for.

Connecticut Business Licenses for Specific Occupations and Professions

Whatever business structure you choose for your Connecticut Company, the primary business activity may be considered under a specific profession or occupation. A detailed list of professions and occupations in this state is provided in the 2024 Connecticut General Statutes, Title 20 – Professional and Occupational Licensing and Title 21 – Licenses. A profession is defined as a business activity that requires you or business owners to possess formal education, training, specific skills, or specialized knowledge in a given industry or sector. An occupation, on the other hand, refers to the regular work that provides a business owner with income. A good example of an occupation is “Marketing,” and that of a profession is “Search Engine Marketing (SEM).” You will need to conduct a Connecticut business license search based on your occupation or profession in this state. Let’s try to understand the type of professions or occupations that require licensing in Connecticut.

The Occupational Professional Licensing Division of the Department of Consumer Protection is responsible for the issuance of such licenses. They also provide a list based on license, permit, and registration types, as well as information on how to obtain a Connecticut business license, the relevant fees, and procedures. Let’s look at an example to understand how this works.

Example: If you want to start a Public Accountancy Firm, then you will need to file the Firm Practice Privilege Form to Practice Public Accountancy Application. This has to be filed with the State of Connecticut, Department of Consumer Protection, Board of Accountancy. This is basically a type of new firm permit or license based on profession or occupation. There is a licensing fee of $150.

Example: Now, if you want to establish a manufacturing unit specializing in the manufacturing of drugs with or without controlled substances in the State of Connecticut, then you will need to apply for an appropriate Connecticut business license. The licensing fee will vary according to the substance used and the number of chemists involved. If your company hires 5 or fewer chemists and manufactures without using controlled substances, then the licensing fee will be $285. If you use controlled substances, then the fee would be $570. You may have to register with the Food and Drug Administration (FDA) and may need a Drug Enforcement Administration (DEA) registration as well.

Yes, it can be quite an exhaustive process to search for the right Connecticut business license and permits. Identifying your profession or occupation properly can ease your search.

Other Connecticut Business Licenses

While operating a company in this state, you may need to apply for multiple licenses or permits. It is always recommended to conduct a proper Connecticut business license search based on the activity and location of your company. The state has local licenses, and hence knowing zoning requirements can be quite helpful. Let’s examine some other licenses and permits that may be relevant to operating your business in this state.

Sales and Use Tax Permit

When you register a new company in the state of Connecticut, your company may be required to obtain several types of licenses depending on the industry or activity. Hence, it is always advisable to conduct a Connecticut business license search. This search is especially useful for understanding whether your company requires a sales and use tax permit in this state. If your business engages in any of the following activities in the state of Connecticut, then it is mandatory to register your company with the Department of Revenue Services (DRS). This is solely for the purpose of sales and use tax.

• Sales, rental, or lease of goods
• Selling of taxable services
• Operating a hotel, lodging house, motel, or bed and breakfast establishment
• Selling at a craft show, the flea market, antique show, trade show, and other fairs

The requirement to obtain a Connecticut business license related to sales and use tax applies to any individual, partnership, LLC, corporation, or any other form of entity that engages in any form of sales or provides specific services in this state. This applies regardless of the number or amount of sales. It is crucial to note that these rules do not apply to casual sales or isolated sales within the state, as they are considered nonrecurring.

The sales tax permit is issued by the Connecticut Department of Revenue Services (DRS). You have to apply for it online using the myconneCT portal. There is a fee of $100, and you will be required to provide your Federal Employer Identification Number (FEIN) or the Social Security Number (SSN), depending on the type of entity. If you conduct your business without first obtaining this Connecticut business license, then it can lead to a penalty of $500 or even imprisonment or both.

Local Connecticut business licensing and permits

In order to operate a business in this state, you will need to apply for the relevant Connecticut business license and permits. A noteworthy aspect is that you will need to obtain local licenses and, depending on your business’s location or jurisdiction, zoning permits. These are also known as county or municipal licenses. Each city or county in Connecticut has its own laws pertaining to permits and licenses. The types of licenses, fees, and renewals will vary from one county to another. Let’s look at an example to understand how to obtain a license and permits from a specific county.

Example: If you start a company in Stamford, CT, then there are certain business activities that may require you to apply for a Connecticut business license as well as zoning permits. If you are planning to start construction work, including redesigning or altering the hotel or restaurant space or office, then applying for related permits is necessary. Similarly, if you are based in the City of Norwich and are planning to organize temporary events, then you will need to apply for a special Connecticut business license and permits. You will also need to obtain a Letter of Zoning Compliance from the City Clerk’s office.

Connecticut home-based business license

If you are thinking of forming a startup and operating it from your residence, then it may save you overall costs, but you might still need to apply for a Connecticut business license. Permits and licenses for a home-based business may vary from one city or county to another. However, the state notes that such businesses will generally require the same licenses and permits as any other entity. If you are selling goods from home or providing taxable services, you must obtain a sales and use tax permit. Some cities or counties in Connecticut may also require you to apply for and obtain a “home occupation permit” as well as zoning permits. Let us look at an example to understand the situation.

Example: If you operate a home-based business in the Town of Canton, CT, then the local regulations state that there will be certain restrictions applicable to a minor home-based business. Such businesses will not require a zoning permit. However, if you operate a major home-based business, then it will require approval from the Planning and Zoning Commission for a special permit. This will be known as a major home occupation permit. Similarly, if a home-based company is located in the City of New London, then the regulations for a Connecticut business license and permits will be different. Home-based businesses will be permitted in specific zones of this city, and you will need to apply for an administrative zoning permit. A baking business started from home will require a Home Occupation Permit in most towns and cities.

Apart from this, you might have to apply for occupational, industrial, and professional licenses depending on the nature of the business activity. Conducting a Connecticut business license search for proper permits can be a demanding task. You can take advantage of the Business License Research Report service offered by IncParadise. This specialized service will help you get a report containing a list of filing instructions, supporting document requirements, and fees for all Connecticut business licenses and permits.

Need any Assistance in Obtaining Your Connecticut Business License?

If you are planning to start a new company in the state of Connecticut, then it becomes necessary to obtain relevant Connecticut business licenses and permits. The license or permit will allow you to transact within this state. The type of licenses will vary according to the primary business activity, industry, profession, and jurisdiction. The application, fee, and laws for a Connecticut business license will vary according to the type of license.

We, at IncParadise, can guide you towards obtaining the necessary business licenses and permits. We also provide additional services to new and existing Connecticut businesses, like EIN Tax ID and Foreign Qualification, among others.