Connecticut is the 4th most densely populated, the 29th most populous, and the 3rd smallest of the 50 states. It also has the highest per capita income and the highest median household income in the US.
Finance, real estate, and insurance are the largest industries in the state. It has a long history of hosting the financial services industry, including insurance companies in Hartford and hedge funds in Fairfield County. According to a 2017 survey by Phoenix Marketing International, Connecticut had the third largest number of millionaires per capita in the United States, with a ratio of 7.75%.
This is good news for small businesses (SMBs), since the per capita income is so high in certain areas that people hold more disposable income, meaning more patronage for small firms. However, it's not all rosy for SMBs, as they have to withstand a wide array of high taxes and expensive real estate. This expands overhead costs in terms of employee compensation and rent.
Here are some statistics on small businesses in the state of Connecticut:
- There are 381,129 small businesses — 99.4% of all Connecticut businesses (latest SBA profile, 2025).
- In 2023, 5,237 identified firms exported $15.0 billion from Connecticut; 4,568 of those exporters (87.2%) were small. Small firms shipped $4.7B, or 31.6% of identified-firm exports.
- Small businesses employ 726,097 people — 48.1% of the state’s workforce (2022 base year in the 2025 SBA profile).
- Connecticut counts 100,324 Hispanic or racial minority-owned businesses (including 45,722 Hispanic-owned and 38,663 Black-owned).
- Between March 2023 and March 2024, small businesses generated a net gain of 10,840 jobs in Connecticut — 82.1% of the state’s net job increase over the period.
- Connecticut’s unemployment rate was 3.8% in July 2025 (seasonally adjusted). Small businesses have taken advantage of this trend through the selective hiring of highly qualified individuals due to competition for vacant positions.
- State law requires that every new Connecticut LLC designate a Connecticut registered agent that will be available during regular business hours at a physical address within the state.
- Self-employed individuals running their own incorporated businesses have an average median income of $60,584. Those with unincorporated businesses have a median income of $31,786.
- Connecticut’s corporation business tax remains 7.5%, plus a 10% surtax for certain larger C-corps — surtax extended through income years beginning before Jan. 1, 2029. Most small businesses operate as pass-throughs; since 2024, the Pass-Through Entity Tax is elective, levied at the entity level (6.99%) with a member-level credit (generally 87.5%). Talk with your CPA to confirm whether the PTET election makes sense for your situation. (Source)
- SMBs in the health care and social assistance sectors have the largest share of employees, with a total of 147,103 out of the statewide SMB workforce of 743,085.
- In order to form an LLC (limited liability company) in Connecticut, you need to submit your Articles of Organization together with a $125 filing fee to the Secretary of State's office. This can be done by mail or online.
- The mining, quarrying, and oil and gas extraction sectors have the smallest number of SMBs compared to other industries with a total of 113 small firms.
- Connecticut is close to large metropolitan areas like New York and Boston. This gives businesses the advantage of working near a dense, urban area. For instance, driving from Hartford, CT, to New York City takes less than two and a half hours.
- LLC annual reports are due every year between January 1 and March 31 (not on your anniversary date). The filing fee is $80. File online via the Secretary of the State.