Why Must New Connecticut Businesses File Form REG-1?

Starting a business in Connecticut comes with a few critical steps—and registering with the state for tax purposes is one of them. While it’s easy to get caught up in the excitement of launching your new venture, it’s equally important to handle the paperwork that keeps your business compliant. Many new business owners lean on accounting services in Connecticut to help navigate these early requirements. One of the first forms you’ll encounter? Form REG-1.

This form is your official registration with the Department of Revenue Services (DRS), and it’s essential for staying on the right side of state tax laws.

What Is Form REG-1?

Form REG-1 is the official application new businesses use to register with the Connecticut Department of Revenue Services (DRS) for state tax obligations. This form must be submitted electronically through the myconneCT portal, which is Connecticut’s required system for tax registration and compliance.

By filing this form, your business is registered for the necessary state taxes such as:

• Sales and Use Tax

• Withholding Tax (if you have employees)

• Corporation Business Tax

• Room Occupancy Tax

• Pass-Through Entity Tax

• Other industry-specific taxes (such as fuel or cigarette tax)

This registration also provides your business with a Connecticut Tax Registration Number, which is essential for filing returns, making tax payments, and staying compliant with state law.

Why Must New Connecticut Businesses File Form REG-1?

Filing Form REG-1 is more than a formality—it’s a legal requirement that ensures your business is ready to operate within Connecticut’s tax system. Here’s why it’s so important:

1. State Law Requires It

Businesses must file Form REG-1 before conducting taxable activities in Connecticut. If you sell taxable goods or services, withhold payroll tax, or operate in an industry subject to special taxes, this form is your first step.

2. It Determines Your Tax Responsibilities

Form REG-1 helps identify which tax types apply to your business. Based on your answers, DRS will register your business for one or more of the following:

• Sales and Use Tax

• Withholding Tax

• Corporation Business Tax

• Pass-Through Entity Tax

• Room Occupancy Tax

• Fuel, Cigarette, and other specific industry taxes

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3. It Enables Tax Payment and Compliance

After registering, your business can pay taxes electronically and file returns through the myconneCT system. This digital platform streamlines your tax responsibilities and helps you avoid costly errors or penalties.

4. It Helps You Stay in Good Standing

Failing to register properly could lead to:

• Penalties or interest on unpaid taxes

• Delays in acquiring licenses or permits

• Legal issues or enforcement actions by DRS

Filing Form REG-1 keeps your business in good standing from day one.

Who Needs to File Form REG-1?

You must file Form REG-1 if your business meets any of the following conditions:

• You have employees working in Connecticut and must withhold Connecticut income tax.

• You operate a business in the state, sell goods or services, or have a physical presence in Connecticut—even if your business is based elsewhere.

• You’re a corporation, LLC, partnership, or other entity registered in Connecticut.

• You sell taxable goods or services (including through craft fairs, events, or online to Connecticut customers).

• You rent or lease taxable property, or offer taxable services in Connecticut.

• You engage in activities subject to special taxes, such as motor fuel or cigarette sales.

Even businesses that are reopening a closed entity or purchasing an existing business must file Form REG-1.

Note: Some taxes may require you to file additional forms after completing REG-1 (like for Bottle Deposit Initiator Tax or Nursing Home Provider Tax).

Summary

Filing Form REG-1 is a must for any new business operating in Connecticut. It officially registers your business with the Department of Revenue Services and ensures you’re in compliance with the state’s tax laws from the start. Whether you’re launching a retail shop, hiring staff, or offering accounting services in Connecticut, this step is essential.

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