Connecticut taxes personal income (Graduated, 7 brackets from 2% to 6.99%), and imposes no separate entity-level income tax on LLCs. A Wyoming holding company does not erase Connecticut's own entity-level obligations on a Connecticut subsidiary, but it can still add liability separation and keep the parent's ownership off Connecticut's public LLC filings.
Connecticut has no mandatory entity-level tax or minimum fee on LLCs — the old $250 Business Entity Tax was repealed in 2020 and nothing has replaced it. The only entity-level tax that touches a Connecticut LLC is the optional Pass-Through Entity Tax election at 6.99%, due March 15, which owners elect only when it benefits their personal federal SALT-cap planning. An LLC that elects C-corp taxation instead faces Connecticut's 7.5% corporate income tax (with a 10% surtax pushing the effective rate to roughly 8.25% for entities earning over $100 million — not relevant to most small LLCs).
The general federal tax treatment of holding companies (consolidated filings, dividends-received deductions, and the like) is set at the federal level and does not change state to state — what changes is the entity-level tax Connecticut itself charges an LLC or corporation formed or registered there.
Connecticut does not impose a franchise tax or a separate entity-level income tax on an LLC taxed as a pass-through, which keeps the tax treatment of a multi-tier structure clean: income earned by an operating subsidiary flows up through the holding company and is taxed a single time on the members' Connecticut returns at graduated rates topping out at 6.99%. The state's optional Pass-Through Entity Tax election (a flat 6.99% paid at the entity level with an offsetting member credit) exists mainly as a federal SALT-cap planning tool and does not add a second layer of Connecticut tax. What the state does charge on a recurring basis is the $80 annual report per LLC, so the predictable Connecticut cost of running a parent and two subsidiaries is $240 a year in report fees.
A Connecticut C-Corporation pays the Corporation Business Tax on Form CT-1120 at 7.5% of net income, with a $250 minimum tax owed even in a loss year. A 10% surtax applies to corporations with at least $100 million in gross income (extended through the 2028 income year). Connecticut has no share-based franchise tax. The ongoing Secretary of the State obligation is the $150 Annual Report due in the anniversary month, plus the one-time $150 Organization and First Report.
Connecticut LLCs must file Annual Report with Connecticut Secretary of the State, due Annually, between January 1 and March 31, with a fee of $80 (raised from $20 in July 2020).
The Annual Report is filed online through Connecticut's Business One Stop portal (which replaced the older CONCORD system in 2021), with the first report due the year following formation. As with most states, nonpayment of any required state fee risks loss of good standing and eventual administrative dissolution the longer it's neglected — confirm the current late-fee schedule directly with the Secretary of the State when a filing is overdue.
A common structure pairs a Wyoming LLC as the parent with a Connecticut entity handling operations, holding property, or running a Connecticut-facing business.
The Connecticut entity still owes whatever Connecticut itself charges — no separate entity-level tax if it stays taxed as a pass-through LLC — regardless of where its parent is formed; pairing it with a Wyoming LLC does not change the Connecticut subsidiary's own filing or tax obligations. What the Wyoming parent adds is liability separation, and the Wyoming company's own ownership stays out of Connecticut's public LLC filings.
For more on the general structure, see the Wyoming holding company guide and how to set one up.
Tax agency reference: Connecticut Department of Revenue Services (DRS) (portal.ct.gov/drs). Corporate filings: Connecticut Department of Revenue Services.
Note: Tax rates, fees, and thresholds shown here reflect state tax research last verified July 2026; reconfirm current figures directly at portal.ct.gov/drs before relying on them for a specific filing.
Connecticut's tax treatment of a holding structure comes down to its personal income tax (Graduated, 7 brackets from 2% to 6.99%) and the absence of a separate entity-level LLC tax. If you have questions about structuring a Wyoming-Connecticut holding arrangement, reach out through our contact form.
If you have questions about structuring a Wyoming-Connecticut holding arrangement, reach out through our contact form or call +1 (307) 683-0983 to speak with one of our experienced Business Success Advisors. Visit our homepage and blog for more.