Fees
Connecticut LLC formation costs
$120 to form + $80 biennial report = ~$160 first-year state cost amortized (before registered agent service) — CALLOUT: Connecticut requires an Annual Report every two years (biennial, not annual) — a compliance advantage vs. most neighboring states. CT repealed its Business Entity Tax (BET) in 2019, eliminating what was once a $250/yr flat burden on all LLCs. Today the ongoing state cost is effectively $40/yr amortized ($80 biennial). Stamford and the Fairfield County corridor position CT as a Northeast financial services hub alongside NY/NJ. Individual income tax: graduated 3.0%–6.99%.
| Fee | Amount | Notes |
|---|---|---|
| Certificate of Organization filing fee | $120 | One-time state filing fee payable to the Connecticut Secretary of the State through business.ct.gov. Compare: New York ($200), New Jersey ($125), Massachusetts ($500), Pennsylvania ($125), Rhode Island ($150). Connecticut's $120 is competitive for a Northeast hub state. The prior Business Entity Tax ($250 biennial) was repealed in 2019 — do not include it in cost comparisons. |
| Biennial Annual Report | $80 every two years | Due March 31 every two years (biennial cycle). Effective annual cost: $40/yr amortized. Filed online through the Connecticut business portal at business.ct.gov. Compare: New York ($9/yr — but $200+/yr mandatory newspaper publication for 2 years), New Jersey ($75/yr), Massachusetts ($500/yr), Pennsylvania ($7/yr decennial). Connecticut's biennial report structure is lower-friction than most Northeast peers. |
| Name reservation (optional) | $30 | Reserves an LLC name for 120 days with the CT SOTS. Optional — most filers verify availability through the Connecticut business name search and proceed directly to filing. |
| Registered agent service (if not self-serving) | $50–$150/year | Required for out-of-state owners who cannot maintain a physical Connecticut street address. CT residents with a CT address may self-serve as RA. Commercial RA services ensure legal mail is not missed and provide address privacy — especially important for Stamford/Fairfield County financial entities receiving regulatory correspondence. |
| CT DRS sales and use tax permit (if selling taxable goods/services) | Free | Free registration with the Connecticut DRS through the myconneCT portal at portal.ct.gov/DRS. Required before first taxable sale. CT's 6.35% statewide rate applies; no local additions for most goods. |
| EIN application | Free | IRS Form SS-4 — free online at irs.gov/ein. No state fee. |
Requirements
What you need to know before filing
- Name must contain 'LLC', 'L.L.C.', 'Limited Liability Company', 'Limited Liability Co.', 'L.C.', or 'LC' — Connecticut accepts standard LLC designators under CGS § 34-243a.
- A registered agent with a physical Connecticut street address (no PO boxes) must be maintained at all times. The RA must be available during normal business hours to accept service of process under CGS § 34-243k.
- Certificate of Organization is filed with the Connecticut Secretary of the State (SOTS) through the Connecticut business portal at business.ct.gov. Online filing is the primary method. Standard online processing is typically 1–3 business days.
- CALLOUT — BIENNIAL REPORT, NOT ANNUAL: Connecticut LLCs file an Annual Report every two years (biennial), due March 31 of the applicable filing year. The biennial report fee is $80 — effectively $40/yr amortized. Most Northeast peers require an annual report (NY $9/yr but with $200/yr publication, NJ $75/yr, MA $500/yr, PA $7/yr decennial). Connecticut's biennial structure reduces annual compliance friction.
- CALLOUT — BUSINESS ENTITY TAX REPEALED: Connecticut repealed its Business Entity Tax (BET) effective January 1, 2019 (Public Act 18-49). Prior to repeal, the BET imposed a $250 flat tax every two years on all Connecticut LLCs — a significant recurring cost. Post-repeal, the biennial report fee ($80) is the only recurring SOS obligation for most LLCs. Founders who researched CT before 2019 may see outdated references to the BET — it no longer applies.
- An Operating Agreement is not required to be filed with the state but is strongly recommended under CGS § 34-255b to govern member rights, voting, distributions, and dissolution.
- Connecticut imposes a corporate income tax at a flat 7.5% rate for C-corporations. For LLCs taxed as pass-through entities (the default), members pay Connecticut individual income tax at graduated rates of 3.0%, 5.0%, 5.5%, 6.0%, 6.5%, 6.9%, and 6.99% (top rate applies to income above $500,000 for single filers). Connecticut has no franchise tax on LLCs.
- Connecticut imposes a pass-through entity tax (PTET) — an elective entity-level tax on partnership and S-corp income — that allows owners to deduct CT income taxes at the entity level for federal SALT deduction purposes. LLCs electing PTET pay Connecticut income tax at the entity level; owners receive an offsetting credit. Consult a CT CPA before electing PTET.
- LLCs selling taxable goods or services in Connecticut must register with the Connecticut Department of Revenue Services (DRS) at portal.ct.gov/DRS for a sales and use tax permit. Connecticut's state sales tax rate is 6.35% (with some categories at 7.75% for luxury goods). No general local sales tax is imposed — the 6.35% rate is uniform statewide.
- Stamford-area and Fairfield County LLCs in financial services, hedge funds, or private equity should verify applicable Connecticut business license requirements with the Connecticut Department of Banking. Financial and investment management entities may require additional regulatory approvals distinct from standard LLC formation.
Documents
What you'll need to file
- Certificate of Organization — filed online through business.ct.gov. Requires LLC name (with valid designator), principal office address, registered agent name and CT street address, and organizer name and signature. Connecticut does not require member names on the Certificate of Organization.
- Registered agent consent — RA must have and maintain a physical Connecticut street address and be available during business hours to accept service of process.
- Operating Agreement — not filed with the state; governs member rights, voting, profit and loss allocation, and dissolution under CGS § 34-255b.
- Biennial Annual Report — filed every two years by March 31 ($80 fee). Filed online through the Connecticut business portal.
- CT DRS sales and use tax registration (if applicable) — free registration via myconneCT before first taxable sale in Connecticut.
- Business bank account documentation — EIN letter, Certificate of Organization approval, and Operating Agreement.
Registered agent
Who receives legal mail for your LLC
Required in every state.
- Required?
- Yes
- Who can serve
- Connecticut resident individual or CT-authorized business entity with a physical CT street address, available during normal business hours to accept service of process
- Can I serve myself?
- Yes
- Commercial RA cost
- ~$125/yr
Self-serving as RA places your home address on the public CT SOTS record. Commercial RA services ($50–$150/yr) preserve privacy and ensure biennial report notices and legal mail are never missed.
Renewing or switching? Compare standalone registered agent services — Northwest, Harbor Compliance, Registered Agents Inc., InCorp, and more.
Process
How to form a LLC in Connecticut
Sequential — each step gates the next.
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Search for name availability through the CT SOTS Use the Connecticut business name search at business.ct.gov to confirm your desired LLC name is available and not deceptively similar to an existing Connecticut entity. The name must include a valid LLC designator (LLC, L.L.C., Limited Liability Company, Limited Liability Co., LC, or L.C.) under CGS § 34-243a. Optional: reserve the name for 120 days ($30) while preparing documents.
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Appoint a Connecticut registered agent Designate a registered agent with a physical Connecticut street address (no PO boxes) who is available during normal business hours. CT residents with a CT address may self-serve as RA, but self-serving places your home address on the public SOTS record. Commercial RA services ($50–$150/yr) preserve privacy and ensure legal mail and biennial report notices are never missed.
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File Certificate of Organization with the CT Secretary of the State File online through business.ct.gov ($120 fee). Provide: LLC name, principal office address, registered agent name and CT street address, and organizer name and signature. Member names are not required on the Certificate. Standard online processing is typically 1–3 business days — among the fastest in the Northeast.
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Draft an Operating Agreement Although not required to be filed with the state, an Operating Agreement governs membership percentages, voting rights, profit and loss allocation, and dissolution under CGS § 34-255b. Hartford-area insurance and financial services LLCs, and Stamford-area hedge fund, private equity, and financial services entities, commonly have complex multi-member structures requiring detailed Operating Agreements to define capital commitment obligations and management authority.
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Obtain an EIN from the IRS After the Certificate of Organization is approved, apply for an EIN at irs.gov/ein. The online application takes under 15 minutes and issues the EIN immediately. Print the EIN Confirmation Letter (CP 575) for bank account opening.
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Register with the CT DRS if selling taxable goods or services If your LLC will sell tangible personal property or taxable services in Connecticut, register through the myconneCT portal at portal.ct.gov/DRS (free) before the first taxable sale. Connecticut's 6.35% statewide sales tax rate is uniform — no local additions for most goods. Some categories (luxury items, certain services) are taxed at 7.75%. Connecticut also taxes a range of digital products and SaaS services — confirm taxability with a CT CPA.
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Open a business bank account Bring your EIN Confirmation Letter, Certificate of Organization approval, photo ID, and Operating Agreement. Hartford's banking market includes Webster Bank (CT-headquartered), Berkshire Bank, M&T Bank, and all major national banks. Stamford hosts major institutional banking operations. A separate business bank account maintains the LLC's liability shield.
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File the Biennial Annual Report by March 31 every two years Connecticut LLCs must file an Annual Report every two years by March 31 and pay the $80 biennial fee. Filed online through business.ct.gov. Failure to file results in administrative dissolution. Note: the biennial cycle means you file every other year, not annually — confirm your specific filing year with the SOTS portal. The biennial due date and the BET repeal are the two most-misunderstood aspects of CT LLC maintenance.
Annual obligations
What your LLC owes every year
Year-2+ costs most formation guides omit.
| Obligation | Due date | Fee | Consequence if missed |
|---|---|---|---|
| Biennial Annual Report | March 31 every two years | $80.00 | Failure to file the biennial Annual Report by March 31 results in administrative dissolution under Connecticut law. The LLC loses good standing and ability to enforce contracts in Connecticut courts. Reinstatement requires back fees and filings. The biennial structure means you file every other year — calendar your specific biennial year through the CT SOTS portal. |
| CT DRS sales and use tax return (if applicable) | Monthly or quarterly — based on DRS filing frequency assignment | $0.00 | Failure to collect and remit CT sales and use tax triggers penalties, interest, and potential personal liability. LLCs with no CT taxable sales have no DRS filing obligation. |
| CT individual income tax for pass-through members (if applicable) | April 15 annually (CT extension available to October 15) | $0.00 | Connecticut-resident LLC members pay CT's graduated individual income tax (3.0%–6.99%) on CT-source pass-through income. Failure to file CT income tax returns triggers penalties and interest. Members with no CT-source income have no CT filing obligation. |
Provenance
Statute basis & official sources
Last verified 2026-05-07.
Connecticut Revised Uniform Limited Liability Company Act, CGS §§ 34-243 et seq. (effective July 1, 2017, replacing the prior LLC Act); Connecticut Revenue Services Act, CGS § 12-1 et seq.; IRS Rev. Rul. 77-137 on single-member LLC tax treatment.
Direct filing portal: https://business.ct.gov/
If you skip the LLC
- Without an LLC, the business name is not protected in Connecticut; another entity can register the same name and force a rebrand. Check availability at https://business.ct.gov/ and, if available, reserve it for 120 days ($30) while you prepare formation paperwork.
- Sole proprietors lose the flexibility to elect S-corp tax treatment once revenue justifies it, forfeiting significant self-employment tax savings.
- Banks, payment processors, and commercial landlords — especially in Hartford's insurance corridor and Stamford's financial services sector — commonly require an EIN and formal business entity for account opening and contract execution.
- Failure to file the biennial Annual Report by March 31 results in administrative dissolution under Connecticut law. Reinstatement requires back fees and filings and disrupts banking and contract relationships.
- Selling taxable goods in Connecticut without a DRS sales and use tax permit exposes the LLC to back-tax liability, penalties, and interest.
- Financial services, hedge fund, and investment management LLCs operating in Connecticut without required Banking Department approvals face regulatory sanctions distinct from standard LLC formation penalties.
Formation context
Who should form in Connecticut?
- Recommended for
- Connecticut residents and businesses genuinely operating in CT — Hartford insurance/financial corridor, Stamford hedge fund and private equity sector, New Haven biotech and life-sciences; Northeast founders seeking the lowest ongoing-cost formation state in the region — CT's biennial $80 report is significantly cheaper than MA ($500/yr) or NJ ($75/yr); Financial services, insurance, and investment management LLCs leveraging Hartford's institutional insurance ecosystem and Stamford's Fairfield County financial corridor; Post-BET-repeal formations: CT eliminated its $250 biennial Business Entity Tax in 2019 — a major cost improvement for any LLC that researched CT before 2019
- Tax treatment (default)
- Pass-through by default: single-member LLCs are disregarded entities (Schedule C); multi-member LLCs are partnerships (Form 1065). Connecticut imposes no franchise tax on LLCs. Members pay CT's graduated individual income tax (3.0%–6.99%) on CT-source pass-through income. Connecticut's elective Pass-Through Entity Tax (PTET) allows entity-level CT tax payment for SALT deduction benefit — consult a CT CPA. Corporate income tax: 7.5% flat (for entities electing C-corp treatment).
If you live outside Connecticut but form here, you will likely need to register as a foreign LLC in your home state for active business operations — usually eliminating the cost advantage. Connecticut is the right formation choice for businesses with genuine CT-nexus operations in Hartford, Stamford, New Haven, Bridgeport, or elsewhere in the state.
No publication requirement in Connecticut — unlike New York or Nebraska, you do not need to publish notice in a newspaper after filing.
FAQ
Common Connecticut (Hartford) LLC formation questions
How much does it cost to form an LLC in Connecticut?
The Certificate of Organization filing fee is $120. The biennial Annual Report costs $80 every two years ($40/yr amortized). Total first-year state cost: $120 (plus RA service ~$50–$150/yr). Total ongoing annual state cost: $40/yr amortized. Note: Connecticut repealed the Business Entity Tax ($250 biennial) in 2019 — references to this tax in older guides are outdated. Compare: New Jersey ($125 form + $75/yr), Massachusetts ($500 form + $500/yr), Pennsylvania ($125 form + $7/yr decennial). Connecticut's biennial report structure is lower-friction than most Northeast peers.
Does Connecticut require an annual report for LLCs?
Connecticut requires a biennial Annual Report — filed every two years, not annually. The fee is $80 due by March 31 of the applicable biennial year. This is a meaningful compliance advantage vs. states that require annual filings. The biennial structure, combined with the 2019 repeal of the Business Entity Tax ($250 biennial), makes Connecticut's ongoing LLC cost among the lowest in the Northeast. Key: confirm your specific biennial filing year with the CT SOTS portal at business.ct.gov — the cycle is determined by your formation year.
What is Connecticut's income tax rate for LLC members?
Connecticut has a graduated individual income tax with rates of 3.0%, 5.0%, 5.5%, 6.0%, 6.5%, 6.9%, and 6.99%. The 6.99% top rate applies to income over $500,000 (single filers). LLC pass-through income is subject to CT's graduated individual rates for CT-resident members. Connecticut also has an elective Pass-Through Entity Tax (PTET) that allows LLC owners to pay CT income tax at the entity level — enabling a federal SALT deduction that is otherwise limited to $10,000/yr for individuals. Consult a CT CPA before electing PTET.
Is the Connecticut Business Entity Tax (BET) still required?
No. Connecticut repealed the Business Entity Tax (BET) effective January 1, 2019, under Public Act 18-49. The BET was a flat $250 biennial tax imposed on all Connecticut LLCs and partnerships. After repeal, the only recurring SOS obligation for most Connecticut LLCs is the $80 biennial Annual Report. Any guide, attorney, or formation service referencing the BET as a current obligation is citing outdated information.
Does Connecticut require a registered agent for an LLC?
Yes. Every Connecticut LLC must maintain a registered agent with a physical Connecticut street address who is available during normal business hours to accept service of process. CT residents with a CT address may self-serve as RA, but self-serving places your home address on the public SOTS record. Commercial RA services ($50–$150/yr) preserve privacy and ensure biennial report notices are not missed.
How does Connecticut compare to New York and New Jersey for Northeast LLC formation?
CT vs. NY: CT $120 form + $80 biennial vs. NY $200 form + $9/yr report + $200+/yr mandatory newspaper publication for 2 years. Over 3 years: CT ~$200 vs. NY ~$1,200+ (with publication). NY's publication requirement is the most significant cost differentiator. CT vs. NJ: CT $120 form + $40/yr amortized vs. NJ $125 form + $75/yr. Over 5 years: CT ~$320 vs. NJ ~$500. CT is cheaper on an ongoing basis. For businesses genuinely operating in Connecticut — Hartford insurance/financial, Stamford hedge funds, New Haven biotech — CT formation avoids the dual-state foreign qualification cost.
Is Hartford or Stamford better for Connecticut LLC formation?
Both cities anchor distinct Connecticut business ecosystems. Hartford is the insurance capital of the US — home to Aetna, The Hartford, Cigna, Travelers, and dozens of insurance technology and consulting LLCs. Hartford is the state capital and has a dense professional services, healthcare, and government contracting cluster. Stamford anchors Connecticut's Fairfield County financial corridor — hedge funds, private equity, asset management, and corporate HQs (UBS, Synchrony, Gartner, Charter Communications). LLC formation costs and process are identical statewide — both cities share the same $120 filing fee, $80 biennial report, and CT-wide tax structure.
What is Connecticut's sales tax rate, and does my LLC need to collect it?
Connecticut's state sales tax rate is 6.35% for most taxable goods and services. Certain luxury goods (jewelry, handbags, motor vehicles over $50,000, and similar items) are taxed at 7.75%. Connecticut has no general local sales tax — the statewide rate applies uniformly. LLCs selling tangible personal property or certain taxable services must register for a CT DRS sales and use tax permit (free) via myconneCT at portal.ct.gov/DRS before the first taxable sale. Connecticut taxes a range of digital goods and SaaS services — confirm service taxability with a CT CPA.
Not sure yet?
Should I form an LLC?
Still deciding between an LLC, sole proprietorship, S-Corp, or C-Corp? Our entity-type comparison breaks down formation cost, tax treatment, liability shield, and compliance complexity for all four structures side by side.
LLC vs S-Corp vs Sole Prop vs C-Corp — compare all four →Reduce your tax bill
Should you elect S-Corp status for your Connecticut LLC?
Once your LLC clears ~$80K in annual net profit, an S-Corp election (IRS Form 2553) typically saves $5,000–$15,000/year in self-employment taxes by splitting owner income into a W-2 salary + tax-free distributions. The election is free — Form 2553 has no IRS filing fee. The key decision factors: your net income level, a defensible reasonable-compensation salary, and the 75-day Form 2553 filing window after LLC formation.
S-Corp election guide — $80K breakeven, Form 2553 deadline & reasonable salary →Is a DBA enough?
DBA vs LLC — do you actually need a full LLC?
Already operating as a sole proprietor, or wondering whether a cheap county DBA filing ($10–$100) is enough instead of forming an LLC? A DBA lets you operate under a trade name — but provides zero liability protection. Our DBA vs LLC comparison breaks down exactly when a DBA is sufficient and when you need a state LLC filing.
DBA vs LLC — cost, liability shield & when to upgrade →Stay in good standing
Annual compliance for Connecticut LLCs
Missing your annual report deadline triggers late fees and — if left long enough — administrative dissolution, which voids your LLC's liability shield until reinstated. Know your Connecticut deadline, fee, and the consequences of missing it.
Annual report requirements hub — deadlines, fees & administrative dissolution →Also see the LLC annual report requirements hub for state-by-state deadlines, fees, late penalties, and reinstatement rules.
Operating in another state?
Register your Connecticut LLC in a second state
If your LLC opens an office, hires employees, or regularly does business in another state, you must foreign-qualify there — or face fines, back taxes, and loss of standing to sue. Our foreign qualification guide covers when you need it, how to file a Certificate of Authority, and what it costs.
Foreign LLC qualification guide — Certificate of Authority & multi-state costs →After you file
Next steps after forming your LLC
Your Articles of Organization are filed — now make your LLC operational. Four actions every new LLC owner needs to take:
Legal resources
Online legal services for LLC owners
Formation gets your LLC into existence; contracts, trademark protection, operating agreement review, and vendor-document review keep it usable. Compare subscription and per-document legal platforms before you rely on a template or pay a local attorney retainer.
LLC legal services comparison — contracts, trademarks, OA review & attorney access →Protect your liability shield
Open a business bank account for your Connecticut LLC
Commingling personal and business funds is the #1 way LLC owners lose their liability shield. A separate business account — in your LLC's legal name, with your EIN — is the foundational act of corporate formality. Mercury, Novo, Bluevine, Relay, and Found open same-day with no monthly fees. Compare online banks vs. Chase and Bank of America.
Business bank account guide — Mercury, Novo, Bluevine & what documents to bring →Owner draws & payroll
How to pay yourself from your Connecticut LLC
How you pay yourself depends on your LLC's tax classification — not what you call the transfer. A disregarded single-member LLC pays via owner draw with SE tax on all net profit. An S-Corp-elected LLC splits income between a W-2 salary (FICA applies) and tax-free distributions. Getting this wrong triggers IRS audit risk and SE-tax errors.
Pay-yourself guide — owner draws, quarterly taxes & S-Corp salary mechanics →April tax season prep
How your Connecticut LLC files taxes
Single-member LLCs file Schedule C with their personal Form 1040 (due April 15). Multi-member LLCs file Form 1065 by March 15. S-Corp-elected LLCs file Form 1120-S by March 15. Know your form, your deadline, and the common deductions — home office, vehicle, retirement contributions, and startup costs — before your first April filing.
LLC tax filing guide — forms, deadlines, deductions & audit triggers →§ A Building permits in Connecticut / Hartford
§ B Other states & comparisons
- New York LLC Formation (Manhattan) — Northeast neighbor; $200 form + $9/yr + mandatory newspaper publication ($200–$2,000)→
- NY vs. DE LLC Formation — Northeast formation comparison hub; where to form for investor-backed entities→
- New Jersey LLC Formation (Newark) — Northeast neighbor; $125 form + $75/yr — higher ongoing cost than CT→
- Massachusetts LLC Formation (Boston) — Northeast neighbor; $500 form + $500/yr — significantly higher than CT→
- Pennsylvania LLC Formation (Philadelphia) — Mid-Atlantic neighbor; $125 form + $7/yr decennial→
- Delaware LLC Formation — VC/investor preference; Court of Chancery; $90 form + $300/yr→
- Foreign LLC Qualification — When and how to register in another state→
- LLC Annual Compliance Guide — What filings does your LLC need each year?→
- How to Get an EIN — Free IRS application guide→
- LLC Operating Agreement — What it is and how to write one→
- S-Corp Election Guide — How to elect S-corp tax treatment for your LLC→
- LLC vs S-Corp vs Sole Proprietorship — Which entity type is right for you?→
- Best Registered Agent Services — Compare Northwest, ZenBusiness, LegalZoom & Bizee→
- Real Estate LLC Guide — forming LLCs for rental property, per-property structure, and due-on-sale clause→
- Holding LLC Guide — parent LLC structure, Wyoming/Nevada/Delaware holding states, multi-entity asset protection→
- PLLC Guide — Professional LLC for licensed professionals (doctors, lawyers, CPAs, architects)→
- DBA vs LLC — Do you need an LLC or just a trade name?→
- Anonymous LLC Guide — privacy formation in WY/DE/NV/NM and bank KYC reality→
- WY vs. DE LLC Formation — Compare costs, fees & protection→
- Single-Member vs. Multi-Member LLC — tax filing, charging-order protection, and ownership structure guide→
- How to Dissolve an LLC — Step-by-step guide→
- Sales Tax Permit Guide — When you need one and how to register in your state→
- Business Name Search Guide — How to check availability before you file→
- Best Payroll Software for LLCs — Gusto vs. OnPay vs. ADP Run vs. Patriot vs. Paychex Flex→
- BOI Report Filing Guide — US LLCs exempt since 2025; how foreign-registered companies file→
- Who Must File a BOI Report? — only foreign companies registered in a US state→
- BOI Report Deadlines — none for US LLCs; 30 days for foreign-registered companies→
- All states — LLC formation guides→
§ C Companion tools
Disclaimer: Informational only — not legal advice. LLC laws change; verify with a Connecticut business attorney or CPA before filing.