All entities listed below that are required to file an annual report with the Secretary of the State are subject to the Business Entity Tax. These entities include:
- S Corporations
- Limited Liability Companies (LLCs) taxed as a partnership for federal income tax purposes
- Single Member Limited Liability Companies (SMLLCs)
- Limited Liability Partnerships (LLPs)
- Limited Partners (LPs)
Once registered, each of these entities is required to pay the Business Entity Tax on or before the fifteenth day of the fourth month following the close of its taxable year.
A business entity reports the Business Entity Tax on Form OP-424. The return should be accompanied by a check or money order made payable to the “Commissioner of Revenue Services.”
Every corporation (or association taxable as a corporation) which carries on business or has the right to carry on business in Connecticut must register with the Department of Revenue Services.
Who Must File Form CT-1120
Form CT-1120, Connecticut Corporation Business Tax Return, must be filed by every corporation (or association taxable as a corporation) which carries on business or has the right to carry on business in Connecticut. Any corporation dissolved or withdrawn from Connecticut during its fiscal year is subject to the corporation business tax up to the date of dissolution or withdrawal.
Who Must File Form CT-1120SI and Form OP-424
Every S corporation doing business in Connecticut, or having income derived from or connected with sources within Connecticut, must file a return on Form CT-1120SI, Connecticut S Corporation Information and Composite Income Tax Return, regardless of the amount of its income (or loss).
For taxable years beginning on or after January 1, 2002, S Corporations that are required to file an annual report with the Secretary of the State must file Form OP-424, Business Entity Tax Return. For information on the Business Entity Tax, see IP 2016(14), Q & A on the Business Entity Tax and SN 2006(12), 2006 Legislative Changes Affecting the Business Entity Tax, .
When to File Form CT-1120 and Form CT-1120S
A corporation business tax return for a taxable period ending December 31 must be filed not later than April 1 of the following year, and, for any other taxable period, not later than the first day of the fourth month following the close of the taxable period. The return will be considered timely if the date shown by the U.S. Postal Service cancellation mark is on or before the due date of the return. If the return is filed late, the corporation will be subject to penalties and interest.
When to File Form CT-1120SI
An S corporation must file Form CT-1120SI by the 15th day of the fourth month following the close of its taxable year. The return will be considered timely if the date shown by the U.S. Postal Service cancellation mark is on or before the due date of the return. In addition, the S corporation must separately file Form CT-1120S by its due date. If any due date falls on a Saturday, Sunday, or legal holiday the return is due on the next business day.
If the S corporation is terminated, completely liquidated, or has changed its accounting method during its normal taxable year, resulting in an accounting period of less than 12 months for federal income tax purposes, Form CT-1120SI is due the 15th day of the fourth month after the end of the accounting period.
The sales and use tax applies to the retail sales of most goods, the lease or rental of goods and sales of certain services. The sales tax is assessed on the total amount you charge for goods and services. The use tax is assessed on the purchase price charged for goods and services when the seller of those goods or services does not collect sales tax from the purchaser.
If you are engaged in selling goods or services in this state you must obtain a sales and use tax permit before you begin your business. Every person desiring to engage in or conduct business as a seller within this state must register by completing REG-1, Business Taxes Registration Application.
This registration requirement applies to manufacturers, wholesalers and retailers of goods. Any business that sells a taxable service in Connecticut must also obtain a sales and use tax permit. You must register whether the business is organized as a sole proprietorship, partnership, corporation, limited liability partnership, or limited liability company, regardless of the amount of tax collected or goods and services sold.If you are purchasing an existing business, you can not use the prior owner's sales and use tax permit. You must register to obtain your own sales and use tax permit. You should also be aware that a purchaser of an existing business can be held liable as a successor for any unpaid tax liabilities of the previous owner. Review IP 2011(16), Successor Liability for Sales and Use Taxes, Admissions and Dues Tax, Connecticut Income Tax Withholding.
A business receives a sales and use tax permit when it registers for Sales and Use Tax in Connecticut. A permit is required for each location where a business operates and must be displayed at each business location. The permit expires every two years and will be automatically renewed on the anniversary date of its issuance, provided there are no delinquencies on the account. There is no renewal fee. If you have any delinquencies or outstanding balances, you will receive notification of renewal, Form OR-219. A new permit is issued when the renewal notification is returned.
If a sales and use tax permit is lost or destroyed, you may obtain a new permit by writing to the Registration Section with a request for a copy of your permit. To change a name or address on a permit, write to the Registration Section or show the change on the front of the sales and use tax return. The mailing address for correspondence is:
Department of Revenue Services
450 Columbus Blvd., Ste 1
Hartford CT 06106-5032
In general, when you register, you will be set up to file sales and use tax returns on the quarterly basis. Remember: even if you did not make any sales for the period, you must file the return.
For quarterly filers, the reporting periods and due dates of the return are:
|January 1 - March 31||April 30|
|April 1 - June 30||July 31|
|July 1 - September 30||October 31|
|October 1 - December 31||January 31|
If your sales tax liability is less than $1,000 for the calendar year, the Department will notify you in writing that you are being changed to annual filing status. The due date for annual filers is January 31 for the previous calendar year's sales.
If your sales tax liability is more than $4,000 for the calendar year, the Department will notify you in writing that you are being changed to monthly filing status. The due date for monthly returns is the last day of the following month. For example, the return for March will be due on or before the last day of April.
If the due date falls on a Saturday, Sunday or Legal Holiday, the return is due on the next business day.
We encourage you to file your return online using TSC, our simple, secure and free, Internet filing system for sales tax, withholding tax and room occupancy tax returns. Visit our TSC webpage for more information. (Taxpayers who are required to remit sales tax by Electronic Funds Transfer are required to use the TSC for their sales and use tax returns.)
If you are not required to use the TSC, you will receive Form OS-114, Sales and Use Tax Return, by mail at the end of each filing period. You are required to file a timely return even if you do not receive one in the mail. If your copy of Form OS-114 does not arrive within 15 days following the end of the reporting period, call the DRS Registration Unit at 860-297-4874. The unit will check to see if the correct mailing information is on file and will mail you a return.
To be timely, a return must be received by the Department or bear a U.S. Postal Service Cancellation mark on or before the due date for filing the return. The due date for returns is the last day of the month following the end of the reporting period. If the last day of the month is a Saturday, Sunday, or legal holiday, the return is due on the next business day.
If you file your return late and a payment of tax is due, you will be subject to additional charges for penalty and interest. Penalty is 15% of the tax due or $50, whichever is greater. Interest is computed at the rate of 1% per month or fraction of a month.
A sales and use tax return must be properly completed and include every sale of goods or services, every lease or rental of goods, and every purchase subject to use tax made during the filing period. The business must report the deductible items on the back of the return which includes nontaxable sales and tax exempt sales. You must file a return even if you made no sales or purchases subject to use tax during the reporting period and no taxes are due. If no sales were made and no purchases were made that are subject to use tax, you should enter zero sales and zero taxes due. Sign the return and file it on time or use the TSC to file your sales and use tax return.
Anyone who maintains an office or transacts business in Connecticut and who is considered an employer for federal withholding purposes must withhold Connecticut income tax, whether or not the payroll department is located in Connecticut. Special rules apply to payers of nonpayroll amounts and payers of compensation to professional athletes and entertainers. Visit our Employer's Page for more information.
Each time a deposit of federal income tax is made:
- Mail a deposit of Connecticut withholding tax with Form CT-WH, Connecticut Withholding Tax Payment, coupon, to:
State of Connecticut
Department of Revenue Services
PO Box 5055
Hartford CT 06102-5055
Your payment will be considered timely if it is actually received, or if the date shown by the U.S. Postal Service cancellation mark is on or before the due date of the federal income tax withholding deposit. Use the same deposit schedule for Connecticut withholding purposes that you are following for federal withholding purposes. Do not file Form CT-WH if no payment is due. Employers who withhold less than $500 of Connecticut income tax for a calendar quarter may pay the tax quarterly with Form CT-941, Connecticut Quarterly Reconciliation of Withholding. (Special rules apply for household employers, see SN 96(8), 1996 Legislative Changes Concerning the "Nanny Tax" Withholding.)
On or before April 30, July 31, October 31, and January 31
File Form CT-941 (even if no tax is due), together with required copies of Forms CT-W4, Employee's Withholding or Exemption Certificate, claiming exempt status from the tax given to you by employees during that quarter.
IMPORTANT: Send copies of Form CT-W4 only as required.
By January 31
Give to each employee to whom Connecticut wages were paid during the preceding calendar year, federal Form W-2, Wage and Tax Statement, and any other information returns, showing the amount of Connecticut income tax withheld.
By February 15
Obtain a new Form CT-W4 from each employee who claimed exempt status (filing status "E") from Connecticut income tax withholding in the prior year.
By February 16
Begin withholding at a flat rate of 6.7% without allowance for exemption from each employee who claimed exempt status from Connecticut income tax withholding in the prior year and who did not provide a new Form CT-W4 by February 15. The Form CT-W4 previously given to you claiming exemption has now expired.
By February 28
File Form CT-W3, Connecticut Annual Reconciliation of Wages, together with every "state copy" of federal Form W-2 reporting Connecticut wages paid to employees during the prior calendar year.
State copies of federal Form W-2 are required for all employees to whom Connecticut wages were paid during the prior calendar year, even if no Connecticut income tax was withheld during the calendar year.
If required, file Form CT-1096, Connecticut Annual Summary and Transmittal of Information Returns, and the "state copy" of certain federal Forms 1099 and W-2G.
If the due date falls on a Saturday, Sunday or legal holiday,
the next business day will be the due date.
To register a business, complete REG-1, Business Taxes Registration Application. Form REG-1 is also used to register for most other state business taxes administered by the Department of Revenue Services. In completing Form REG-1 you must furnish a general description of your business activities. If your business is a sole proprietorship you must furnish your Social Security Number. If it is a partnership, corporation, limited liability company or limited liability partnership, you must furnish the company's Federal Employer Identification Number (FEIN) and the Social Security Numbers, names and addresses of the partners or officers. If there are more than three partners or officers, attach a list of the remaining names and Social Security Numbers to Form REG-1.
Use Form REG-1 to register for Admissions and Dues Tax, Business Entity Tax, Business Use Tax, Cigarette Tax (over the counter retail sales), Corporation Business Tax, Dry Cleaning Surcharge, Income Tax Withholding, Motor Vehicle Rental Surcharge, Room Occupancy Tax, Tourism Account Surcharge on the Rental/Leasing of Passenger Motor Vehicles, Unrelated Business Income Tax, Utility Companies Tax, as well as for the Sales and Use Tax.
You may register either online, by mail or in person at the Department's Hartford office. If you apply in person, you will be issued a temporary seller's permit and assigned a Connecticut Tax Registration Number that same day. Once you have the temporary seller's permit you may begin making sales. You will be mailed your permanent Sales and Use Tax Permit which will be valid for two years. You may apply in person at the main office in Hartford. If you register by mail, it will take approximately two to three weeks to receive the permit.
REMEMBER: No sales may be made until the Sales and Use Tax Permit (or the temporary seller's permit) is issued.
There is a $100 fee (an additional $50 if the retail sale of cigarettes is involved) to register for a Sales and Use Tax Permit, payable at the time of registration. If you register at our Hartford office, payment must be made by cash, check or money order. You must bring a photo identification, such as a driver's license with you. The application must be signed by the individual owner, partner, officer of the corporation or another person who has authorization to sign by a Power of Attorney granted by the owner, partner or officer of the corporation.
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