Connecticut State Department of Revenue Services

Registering Your Business with DRS

Use myconneCT to register your business for taxes with the Connecticut Department of Revenue Services (DRS). In addition to registering with DRS, you may have other state or federal requirements when starting a new business.

Registering With DRS

Use myconneCT to register for each business and tax type to obtain a Connecticut Tax Registration Number. Some tax types have registration fees. If you are registering for a tax type with a registration fee, you must make direct payment from your savings or checking account or payment with a credit card. To complete the myconneCT business tax registration application, you will need:

  • The Federal Employer Identification Number (FEIN) of the business or the Social Security Number (SSN) of the sole proprietor. If your business does not have an FEIN (and you are not a sole proprietor), you need to apply for an FEIN with the IRS. Apply for an FEIN;
  • The legal name of the business or the sole proprietor's name;
  • The business name (DBA), if applicable;
  • The business address;
  • Banking information to pay permit/license fees (if applicable); and 
  • The names and Social Security Numbers of responsible owners/officers.

If you register for sales tax, room occupancy tax, or as an over-the-counter cigarette dealer (retailer), a permit will be available to print. DRS will send you your official registration tax permit/license (if applicable) in the mail.

To obtain your Connecticut Tax Registration Number, log in to your myconneCT account using the logon you created with your registration submission.

A copy of the tax permit/license (if applicable) can be obtained from your myconneCT account after the registration application and payment have been processed.

Changes to Your Registration

Use myconneCT to notify DRS if any of the following changes to your business occur:

  • Change to the business name or address;
  • Change in business owners, including adding or removing partners or changing corporate officers;
  • Change to business structure (incorporating your business, forming a partnership, etc.);
  • Addition of new tax liabilities or deletion of tax liabilities for which you are no longer liable;
  • Addition of new business locations or the sale or closure of one or more existing locations;
  • Change to your mailing address, physical location address, or contact information; or
  • Close your account(s) with DRS.

Purchasing an Existing Business

If you purchase an existing business, you should consult a practitioner or business advisor to be certain you take all the steps necessary to protect your interests. In certain cases, the tax liabilities of the former owner can become your liabilities if you do not take precautions. See Successor Liability below. You are also required to get your own Connecticut Sales and Use Tax Permit. You may not use the Sales and Use Tax Permit issued to the previous owner. See Who Must Obtain a Sales and Use Tax Permit.

Successor Liability

If you purchase an existing business, you may be held personally liable for the former owner’s liabilities for sales and use taxes, admissions and dues taxes, room occupancy taxes, cigarette taxes, tobacco products taxes, or Connecticut income tax withholding. To avoid this problem, notify DRS by letter of the impending purchase at least 90 days before the closing and request a Tax Clearance Certificate for Sales and Use Taxes or Tax Clearance Certificate for Admissions and Dues Tax. DRS issues clearances only to the purchaser, not to the seller.

For more information about the tax clearance certificates, see Informational Publication 2018(10), Successor Liability and Request for Tax Clearance.

Closing a Business

To close a business in myconneCT:

  • Log in to myconneCT.
  • Go to More… tab.
  • Locate the Taxpayer Updates group and click the Close Accounts hyperlink.
  • Enter the date of closure for the accounts you wish to close.
  • Click Next.
  • Review the accounts you wish to close, as well as the remaining open accounts (if applicable).
  • Click Submit.

Who Must Register for A Sales and Use Tax Permit?

You must obtain a Sales and Use Tax Permit from the Department of Revenue Services (DRS) if you intend to engage in any of the following activities in Connecticut:

  • Sale, rental, or lease of goods;
  • Sale of a taxable service; or
  • Operating a hotel, motel, lodging house, or bed and breakfast establishment.

You must obtain a Sales and Use Tax Permit before making any sales. If you purchase an existing business, you may not use the Sales and Use Tax Permit issued to the previous owner; you must obtain a new Sales and Use Tax Permit. If you will have more than one location, you must obtain and display a Sales and Use Tax Permit for each location.

The requirement to obtain a permit applies to individuals, corporations, partnerships, and all other business entities that will make sales in this state, regardless of the number of sales made or the amount of tax collected. These rules do not apply to casual sales or isolated sales, which are infrequent sales of a nonrecurring nature made by a person not engaged in the business of selling tangible personal property or taxable services. Manufacturers and wholesalers, as well as retailers, must obtain a permit.

All building contractors, including subcontractors, must obtain a Sales and Use Tax Permit from DRS prior to providing any services, even if the services provided are not taxable or if the contract is with a tax-exempt entity.

You must obtain a permit if you will be selling at a flea market, craft show, antique show, fair, etc. in Connecticut even if you will only be making sales for one day. The permit must be displayed prominently at your booth or table.

As a seller, you are responsible for collecting sales and use tax and you are liable for its payment whether or not you collect it as required from your customers. You must file returns and pay the full amount of tax due to DRS.

Marketplace facilitators and marketplace sellers may be required to obtain a Sales and Use Tax Permit. See OCG-8, Office of the Commissioner Guidance Regarding Marketplace Facilitators and Marketplace Sellers.

Out of State Sellers

An out-of-state seller must register with DRS and obtain a Connecticut Sales and Use Tax Permit if it makes retail sales of tangible personal property or services to a destination within Connecticut, and during the 12-month period ending on September 30 immediately preceding the monthly or quarterly period for which liability for tax is determined makes:

  • 200 or more retail sales into Connecticut and has at least $100,000 in gross receipts from sales into Connecticut.

Out-of-state sellers that repair or service goods sold by them into Connecticut, whether directly or through an agent, independent contractor, or subsidiary, must also register with DRS and obtain a Connecticut Sales and Use Tax Permit. An out-of-state retailer that has tangible personal property located in Connecticut on the premises of a marketplace facilitator is required to register for sales tax even if it is under the thresholds.

For more information on Connecticut Sales and Use Taxes, visit the Connecticut Sales and Use Taxes Information.

Who Must Register for Income Tax Withholding?

If you employ one or more workers in your business, you are generally required to register with the Department of Revenue Services (DRS) to withhold Connecticut income tax. Use myconneCT to register for income tax withholding. If you are already registered for other state taxes (for example, sales and use taxes or corporation business tax), use myconneCT to add withholding tax to your registration.

If you acquire an existing business, you must register to obtain your own Connecticut Tax Registration Number. You cannot use the previous owner’s registration number.

Income Subject to Withholding

All wages of a Connecticut resident are subject to Connecticut income tax even if the resident works outside of Connecticut. However, if the employee works in another state, Connecticut income tax must be withheld only to the extent the Connecticut tax exceeds the amount required to be withheld for the other state(s) for services performed there. Wages of a nonresident are subject to Connecticut income tax withholding if the wages are paid for services performed in Connecticut. Residents of states with a convenience of the employer test will be subject to similar rules for work performed for a Connecticut employer.

For more information on Connecticut Income Tax Withholding, visit the Connecticut Withholding Tax Information.