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Note: The Business Entity Tax (BET) no longer exists. Public Act 19-117 has ended the BET for any tax period beginning after 12/31/2018.

The tax rate of 7.5% is then applied to arrive at the net income base tax. To calculate your net income base tax, you must make certain modifications to your company's federal taxable income.

LLC members must pay personal income tax on their earnings at the federal self-employment tax rate of 15.3% (12.4% for social security and 2.9% for Medicare). The state of Connecticut also collects personal income tax and sales tax, and LLCs filing as partnerships or S-Corps must pay a Pass-Through Entity tax.

S Corporation Taxes S corporations whose income from passive activities exceeds 25 percent of the corporation's gross receipts must pay corporate tax on the excess income from the passive activities. The tax is charged at a rate of about 21 percent of the excess passive income.

LLCs in Connecticut have two different options for paying the business entity tax. First, you may pay the tax by mail. Second, you can use the Taxpayer Service Center (TCS) to pay for your tax online. You can call the Connecticut Department of Revenue at 850-297-5962 for more information about the business entity tax.

What is the tax rate for S corporations? The annual tax for S corporations is the greater of 1.5% of the corporation's net income or $800. Note: As of January 1, 2000, newly incorporated or qualified corporations are exempt from the annual minimum franchise tax for their first year of business.

Extension of the Corporate Surcharge Tax. The surcharge is on top of the existing 7.5% corporate tax rate. Corporations will not be required to pay installment payments of estimated tax on the 10% surcharge for the 2023 year until the proposal is enacted as law.