The short answer
It depends. Connecticut has trade-offs: High income tax, Annual report fee. For most founders, alternatives like Wyoming or your home state are simpler.
Three deciding questions
1. Do you live or operate in Connecticut?
If yes, form here. Out-of-state formation while operating in Connecticut costs double, not half.
2. What is the 5-year all-in cost?
$770 (filing + 5 × annual report + $50 registered agent + franchise minimums). This is the actual number to compare across states.
3. What are your three real requirements?
- Privacy: 4/10 (weak — members appear on public filings).
- Banking: 7/10 (workable but not premium).
- Cost: low 5-year total.
Connecticut pros
- Reasonable filing fee
Connecticut cons
- High income tax
- Annual report fee
Most common alternative
Wyoming for cost + privacy. Delaware for VC-backed startups. Your home state if you operate there. Run the 5-question quiz for a personalized shortlist.