Turning your side hustle into a Connecticut LLC can offer liability protection and tax benefits. However, understanding your tax obligations is crucial. This guide provides a clear overview of federal and Connecticut state taxes for your side hustler LLC in 2026, helping you stay compliant and maximize your savings.
As a single-member LLC in Connecticut, your business income is typically taxed as pass-through income. This means the profits are taxed at your individual income tax rate. You'll report your business income and expenses on Schedule C of your Form 1040. Alternatively, you can elect to have your LLC taxed as an S-Corp, which may offer self-employment tax savings under certain conditions. An S-Corp election requires additional compliance.
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