If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In Connecticut, the first step is visiting the revenue department’s website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit.
What Products and Services Are Subject to Sales Tax in Connecticut?
Sales of tangible goods are subject to sales tax in Connecticut. Services subject to sales tax include advertising, contractor services, cable, dry cleaning and laundry, and maintenance to real estate property. Bicycle helmets, child car seats, college textbooks, and medical goods and equipment are exempt from sales tax in Connecticut.
Connecticut Sales Tax Rate
The sales tax rate in Connecticut is 6.35%.
Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.
How to Register for Connecticut Sales Tax
In Connecticut, acquire a seller’s permit by following the Department of Revenue’s detailed instructions for registration:
- Visit the Department of Revenue services website.
- Fill out the business registration form.
- Pay the $100 fee to apply for a sales tax permit.
Use our Sales Tax Calculator to calculate taxes and total purchase amount.
In Connecticut, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.