Key Takeaways

  • Most Connecticut businesses need both state-level and local licenses or permits to operate legally.
  • The type of license depends on the business activity, structure, and location.
  • Local licensing requirements vary by city or town, and may include zoning permits and signage approvals.
  • Some professions and industries require registration with specific state departments, such as the Department of Consumer Protection.
  • Failure to obtain required licenses can result in penalties, business closure, or legal action.
  • You can get help from an attorney on UpCounsel to navigate the application process.

CT Business License: What Is It?

A CT business license is required if your company plans to do business in the state. You need to apply for a business license with the Secretary of State. The business entities that need to apply for a CT Business License are:

  • Every corporation
  • Partnerships
  • Limited liability companies
  • Non-profit organizations

If you start a sole proprietorship, you will not need to register for a business license. 

Business licenses are issued by states, local governments, and the federal government, as well. Depending on your business activities and form of incorporation, you might need to obtain multiple Connecticut Business Licenses. 

You might also need to apply for special tax permits if you operate a retail business in Connecticut with the Department of Revenue Service. 

Local Licensing Requirements in Connecticut

While the state does not issue a general business license, many Connecticut cities and towns require local business licenses or permits to operate legally within their jurisdictions. These requirements often vary by municipality and by the type of business you operate.

Common local licenses and permits include:

  • Zoning permits to ensure business activities comply with local land use regulations.
  • Home occupation permits for businesses operating out of a residence.
  • Sign permits for installing exterior signage.
  • Health department approvals for food-related businesses.

Local permits can be obtained through your town hall or municipal office. It’s critical to contact your local city or town clerk to understand which documents are necessary based on your location and industry.

Connecticut Business License Obligations and Requirements

If you don't obtain a business license before carrying out business activities in Connecticut, you will need to pay a penalty or fine. If you ignore the requirements, the Secretary of State might even close down your business, resulting in financial loss. Connecticut has strong enforcement to make sure all businesses comply with the local regulations.

As it is likely that your new business will need several federal and state licenses, it is recommended that you consult with a CT business attorney and get in touch with the Secretary of State for advice and guidance. The licensing requirements constantly change, so you need a professional to navigate you through the processes. 

There are some specific licensing rules for businesses that carry out certain activities, such as: 

  • If your business sells regulated goods, such as lottery tickets, firearms, gasoline, or liquor, you will need to apply for additional licenses.
  • If you offer medical, car repair, insurance, or real estate related services, you will need to obtain occupational licenses.
  • The most regulated industries in Connecticut are daycare, agriculture, cosmetics, debt management and collection, financial services, social and health services, oil and gas, health supplements, education, and aviation. 

It is important that you check the business licensing requirements before you start a business to avoid reputation loss and fines. Consult with a Connecticut business licensing attorney for advice. 

Regulatory Agencies and Industry-Specific Licenses

In addition to local licensing, Connecticut regulates certain professions and industries through various state agencies. Depending on your business type, you may need to register or get licensed with one or more of the following:

  • Connecticut Department of Consumer Protection (DCP) – Handles licensing for dozens of trades and professions, including real estate, liquor sales, barbering, and more.
  • Department of Public Health (DPH) – Licenses healthcare providers and facilities.
  • Department of Energy and Environmental Protection (DEEP) – Regulates environmental permits, particularly for manufacturing or waste-disposal businesses.
  • Department of Motor Vehicles (DMV) – Requires registration for car dealerships and certain transportation-related businesses.
  • Department of Agriculture – Oversees licenses for food producers, farmers' markets, and more.

To see which agency governs your specific industry, consult the Connecticut Licensing Info Center or the DCP's website for a full alphabetical list of licenses by industry.

Different Types of CT Business Licenses

All new businesses need to obtain the relevant permits and licenses before they carry out their activities in Connecticut. The cost and process of the license will depend on the incorporation form and the industry of the new business. 

Below you will find a list of the most common business licenses:

  • Business operation or business privilege license
  • Department of State Tax ID
  • Sales tax license
  • Withholding Taxes License for companies with employees
  • Seller/reseller permit
  • Zoning and land use permit
  • Signage permit
  • Home occupation permit

Apart from the above state permits, businesses might also need to apply for local business licenses in the city or municipality of their operation. 

There are a few occupations that require special state licensing. You can check the additional requirements on the CBRC website. 

CT Business License: How Much Does It Cost?

The cost of getting your business licenses will depend on the activities you carry out and your incorporation form. You should check with your local authority and business legal consultant before you complete an application. 

Additional Costs and Ongoing Compliance

Beyond the initial licensing fee, you may incur additional costs such as:

  • Application or processing fees for local permits
  • Annual renewal fees
  • Inspection fees, especially for health or fire safety compliance
  • Filing fees with the Secretary of the State for corporate entities

Some licenses must be renewed annually or biannually, and failure to renew on time can result in late penalties or a lapse in legal standing. It's important to maintain accurate records and track renewal dates to remain in compliance.

How to Register Your Connecticut Business License

When opening a Connecticut business, the first thing you need to do is register your entity through the Department of Revenue and apply for a Connecticut State Tax ID number. 

You will need to use Form REG-1 if you make the application via mail or apply online. 

If you have any questions regarding your CT State Tax Identification Number application, you can call the Department of Revenue at 860-297-5962 or go to their contact page. 

Depending on your business location, you might also need to apply for a business license from your local municipality. The business development team of your city will be able to let you know about the specific requirements for permits in your industry. If you need help and guidance, you can contact the Connecticut Licensing Info Center. 

If you incorporate as an LLC or corporation, you will need to file your incorporation documents and submit them to the Connecticut Secretary of the State (SOTS). 

To apply for any license, you will need to provide the following information:

  • Business name
  • A business registered address
  • Contact information
  • Owner's name and information
  • Business entity type
  • Nature of business
  • Social security number
  • Employee identification number

Steps for Getting a Business License in Connecticut

To obtain a business license in Connecticut, follow these general steps:

  1. Choose your business structure (LLC, corporation, sole proprietorship, etc.) and register it with the Secretary of State, if required.
  2. Apply for a Connecticut Tax Registration Number through the Department of Revenue Services, especially if you will collect sales tax or have employees.
  3. Identify your required licenses and permits using tools such as the Connecticut Business Response Center or municipal websites.
  4. Apply for state-level licenses relevant to your industry, such as those issued by the DCP or DEEP.
  5. Contact your local city or town clerk to determine any local licensing or zoning requirements.
  6. Submit applications and pay applicable fees. Be sure to gather and submit required documentation such as your EIN, business name, and address.
  7. Schedule any required inspections, such as health or fire inspections, depending on your business type.
  8. Maintain and renew licenses regularly, as required by each issuing agency.

This step-by-step process can vary depending on the nature and scale of your business, so personalized legal guidance is often beneficial.

Frequently Asked Questions

  1. Do I need a license to start a small business in Connecticut?
    Most small businesses in Connecticut require either state, local, or both types of licenses depending on their operations. Even home-based businesses often need permits.
  2. Where do I apply for a Connecticut business license?
    You can apply online through the Connecticut Department of Revenue Services for tax registration and contact the relevant local or state agency for industry-specific permits.
  3. How long does it take to get a business license in Connecticut?
    Processing times vary by agency and license type. Simple licenses may be approved in a few days, while others involving inspections or background checks may take several weeks.
  4. Is a Connecticut business license the same as an LLC registration?
    No. Forming an LLC is a business structure registration with the Secretary of State. A business license is separate and allows you to legally operate within your locality or industry.
  5. How can I find out what licenses my business needs in Connecticut?
    Visit the Connecticut Licensing Info Center or contact your local town hall. You may also want to consult an attorney on UpCounsel for tailored advice.

If you need help with your CT Business License application, you can post your job on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.