A Complete Guide to Understanding and Filing Your CT Business Taxes

If you’re forming or running a business in Connecticut, you must file and pay the required taxes to ensure compliance with the state. This includes understanding the different tax obligations for your business type, as well as meeting filing deadlines to avoid penalties.

In this guide, we’ll discuss the type of CT business taxes applicable to businesses and the tax filing process. We’ll also introduce Harbor Compliance, a reliable partner that handles your business tax and other legal obligations, allowing you to focus on running your business.

Types of CT Business Taxes and Their Filing Processes

The amount of taxes you need to pay as a business operating in Connecticut depends on the structure of your organization and business activities. However, there are four major types of business taxes that apply to small businesses in Connecticut:

1. Corporate business tax
2. Withholding tax
3. Sales and use tax
4. Unemployment insurance tax

Corporate Business Tax

Corporate business tax is a type of tax levied on corporations that carry on business or have the right to carry on business in Connecticut. Some examples of carrying on business include:

• Owning or leasing real property
• Maintaining an office
• Selling tangible personal property
• Storing and maintaining an inventory stock at a public warehouse

Meanwhile, having the right to carry on business implies businesses organized or incorporated under the laws of Connecticut or other states. Businesses must have a valid certificate of incorporation or certificate of authority issued by the Connecticut secretary of state.

All corporation business tax returns are filed electronically. Follow these steps to register for corporate tax:

1. Visit the official website of the Department of Revenue Services (DRS).
2. Create an account online.
3. Make the payment either from your bank account or via debit or credit card.

Make sure to file the return on or before the 15th of the month after its federal income tax return is due for that year.

Withholding Tax

Withholding tax applies to businesses in Connecticut with employees. You must register to withhold Connecticut income tax if:

• You maintain an office or conduct business in Connecticut and are considered an employer for federal withholding purposes, even if your payroll department is located outside the state
• You pay nonpayroll amounts or provide compensation to professional athletes and entertainers (special rules apply)
• You’re already registered with the DRS for other state taxes and have employees in Connecticut

If your business falls under any of these categories, you can register for withholding tax by following the steps below:

1. Visit the myconneCT website.
2. Click the New Business/Need a CT Registration Number? button.
3. Fill out the business registration form.
4. Pay your withholding taxes weekly, monthly, or quarterly.
5. File a quarterly tax report.

Sales and Use Tax

Businesses must register for sales and use tax if they engage in activities involving:

• Sale, rental, or lease of goods
• Sale of a taxable service
• Operation of a hotel, motel, or similar embellishment

Here are the steps you need to take to register for sales and use tax:

1. Go to the myconneCT website.
2. Under Business Registration, click New Business/Need a CT Registration Number?
3. Pay a $100 fee to register, after which you’ll receive a Sales and Use Tax Permit.
4. File your tax returns.

Tax returns and payments must be submitted by the last day of the month after the filing period ends.

Unemployment Insurance tax

All Connecticut employers are mandated to pay unemployment insurance taxes to employees who were unemployed through no fault of their own. This includes situations like layoffs, plant closures, or a lack of available work. However, employees who were fired for willful misconduct are not eligible for these benefits.

Here’s what the filing process looks like:

1. Register your business on the ReEmployCT website.
2. Get your Employer Account Number (EAN).
3. File and pay unemployment taxes by April 30, July 31, October 31, and January 31.

Rely on Harbor Compliance for Connecticut Business Tax Filing

The state requires businesses to fulfill a few requirements before registering for taxes, including:

• Getting your Employer Identification Number (EIN)
• Selecting a Doing Business As (DBA) name (if applicable)
• Registering your business name
• Finding your NAICS code

You may also need to register for additional taxes, such as room occupancy tax or tax for selling over-the-counter cigarettes.

Keeping track of all these requirements as a business owner can be exhausting. This is where a professional service provider like Harbor Compliance can do the heavy lifting for the tax registration and filing process.

Our Tax Manager software, which is available as a standalone tool included in our proprietary Software Suite, helps you securely store payroll, sales, and corporate income tax accounts as well as track federal, state, and local tax registrations and exemptions with ease. You can also view all tax registration data at a glance and receive automated notifications for an approaching deadline.

Additionally, our Payroll Tax and Sales and Use Tax Registration services ensure timely compliance with other state tax requirements.

How To Book a Demo of Our Tax Manager Software

Want to see our software in action? Follow the below steps to book a demo of our Tax Manager:

1. Visit our Tax Manager Software page.
2. Select Schedule a Demo.
3. Enter your business information in the online form.
4. Submit the form.

Additional Harbor Compliance Services

Explore the full range of services by Harbor Compliance from the table below:

Order Harbor Compliance’s Tax Registration Services

Navigating CT business tax can be complex, considering the various business taxes you need to file and pay to maintain good standing with the state. Consider partnering with Harbor Compliance to simplify the tax filing process and ensure timely payments and renewals.

Order our Tax Manager Software to get comprehensive insights into your tax registration data and securely store your tax accounts. You can sort and filter through the list as you set one-time or recurring events to receive automated reminders from the software. We can also assist you with your payroll and sales and use taxes through our Payroll Tax and Sales and Use Tax Registration services.

You can explore our other services and use the free Harbor Compliance Score™ to check your compliance with state requirements. You can also schedule a demo session to learn about our Software Suite and its different modules.

Want to learn more about state business taxes or other compliance solutions we offer? Contact us or visit our Information Center.