Starting a business in Connecticut will mean potentially registering with a number of federal, state and local agencies. Let’s take a look at common licenses and permits a business will register for in Connecticut.
Business License – There is no general state of Connecticut business license, however many cities require businesses to be licensed in order to operate. Rules for business registration vary depending on location and what the business does. Below are a few cities that have licensing requirements.
New Haven – The City of New Haven requires business licenses for amusement related businesses like bowling alleys, game rooms and pool tables, street vendors and contractors
Hartford – Businesses requiring licensing in Hartford include dance halls, pawn brokers, second hand dealers, laundromats and more. Most licenses cost under $100.
Stamford – All businesses operating in City limits need to obtain a business license from the City of Stamford.
Employer Identification Number (EIN) – Many businesses will register with the Internal Revenue Service (IRS) for an EIN or Employer Identification Number. The EIN is the business equivalent for a Social Security Number for an individual. Corporations, Limited Liability Companies, Partnerships and Sole Proprietorships with employees will all need to register for one. Sole Proprietorships without employees can use the owner’s Social Security Number.
There is no cost for an EIN and it only takes a few minutes to get.
Connecticut Sales Tax Permit – If your business sells, rents or leases goods, sells a taxable service or operates a hotel, motel or lodging house, you must obtain a Sales and Use Tax Permit (REG-1 Form) from the Connecticut Department of Revenue Services.
The one-time registration fee for the Sales Tax Permit is $100.
Learn more about registering for a sales tax permit in Connecticut.
Resale Certificate – Businesses purchasing merchandise to resell will usually want to obtain a Connecticut Resale Certificate in order to not pay sales tax for merchandise that is being resold to customers.
Professional License – A variety of professions in the state are regulated and need to be registered before offering certain services. A few common professions that require licensing in Connecticut include; acupuncturists, athletic trainers, family planners, landscape architects, pharmacists and many more. Additional information, fees and licensing requirements for professions are available from the State of Connecticut.
In addition to professional licensing, there are a few other types of businesses that need licensing that are not covered by State, a few of which include:
Food related establishments
Assumed Name Registration – While not a business license, Sole Proprietorships and Partnerships operating under a name that is different from the full name of the owner(s) must register for an Assumed Name (also known as a Doing Business As or DBA) with the Town Clerk’s Office where the business is located.
These are a few of the most common business licenses, but there are far too many business licenses and permits in Connecticut for us to keep track of. Before starting your business, check with the City Hall, County Clerk, Chamber of Commerce and/or Economic Developer in your area to get more information regarding business licensing. Additionally, there are companies like IncFile or CorpNet that can do the research to ensure you have the proper federal, state and local licenses.