Forming a co-founder LLC in Connecticut requires careful tax planning. This guide outlines key federal and Connecticut-specific tax obligations, deductions, and common pitfalls for co-founder LLCs in 2026. Leverage Lovie's AI to automate compliance and optimize your tax strategy.
In Connecticut, an LLC with two or more members is generally taxed as a partnership by default. This means profits and losses are passed through to the co-founders' individual income tax returns. You can elect to be taxed as an S-Corp or C-Corp for potential tax advantages, but this adds complexity. Connecticut also imposes a business entity tax on LLCs, regardless of profitability.
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