Business Entity Registration

Step 1 - Choose a farm name

• Confirm your farm name is available through the State of Connecticut’s Business Records Search. Starting in 2026, this search engine has a record of all business entities (LLCs and Corporations) registered with the Secretary of State, as well as any sole proprietorship entities that have registered their trade names with municipal town clerks.
• Before finalizing your business name, it is crucial to determine whether it has already been trademarked by another entity. This involves conducting a comprehensive search through the United States Patent and Trademark Office (USPTO) database or consulting with an Intellectual Properties (IP) attorney. Ensuring your chosen name is unique and not infringing on existing trademarks will help you avoid legal disputes, and protect your brand identity.
• To use the USPTO system, enter the trademark search system, enter your farm name without the word This may bring up a large list of businesses.

Enter food or other relevant term in the ‘refine search by goods or services’ search bar and uncheck the ‘dead’ box in the side bar on the left.

Consult the search results to ensure your proposed farm name is not the same as another trademarked farm business.

Step 2 - Create a dedicated farm email (optional)

It is not essential to have a separate farm email, but if you think it might be a good idea down the road, it is worthwhile to do it now. You will need to enter an email address as you navigate the obligations below.

A separate email account can help prevent losing track of farm-relevant emails.

Tip: Having your farm name in your email can help with brand recognition and marketing.

Step 3 - Choose a business structure

• Sole proprietorships, partnerships, and limited liability companies (LLC) are common choices when establishing a farm business. Your choice will be primarily based upon your need to address liability, tax implications, and future transfer of ownership.
• You can learn more about business structures through the UConn Extension Connecticut Agricultural Business Management Guide and the S. Small Business Administration.
• Consider consulting with a business advisor, attorney, and/or tax consultant to help you decide on a business structure. For those who qualify, Legal Food Hub can connect you with an attorney for pro bono legal services.
• For LLCs, although not required to be filed with the State, you should prepare an Operating Agreement, especially if there are more than one member, to detail ownership interests, profit distribution, and other rights and responsibilities.
• If you intend to structure your farm as a non-profit corporation, the rest of this factsheet will not apply. See Starting a Charitable Organization in Connecticut for more information.

Step 4 - Determine if you need to register with the Secretary of the State

• Most business structures -- except a sole proprietorship -- need to register with the Secretary of the State.
  • A sole proprietorship will need to register their trade name with their town clerk (See Step 5).
• Registering your business means filing a Certificate of Organization (for LLCs) or Certificate of Incorporation (for corporations).
• There is an initial filing fee of $120 and then an annual report filing fee of $80, due each year between January – March, to remain active.
• You must designate a registered agent with a Connecticut address to receive legal documents. The registered agent can be a member or manager of the LLC, or a third party.
• While it can be more efficient to file online, you can find copies of “paper” filings here. The process can be more streamlined if you know what information to have ready by reviewing the ‘paper’ copies.
• You will likely need to enter a NAICS code.(North American Industry Classification System).

Use the search term ‘farm’, or a term that fits the core of your business model, such as ‘beef’ or ‘herb’, to bring up possible codes. A NAICS code is used to classify businesses by industry, facilitating economic data collection, analysis, and reporting.  Some common ones are:

• 111219 Other Vegetable (except potato) and Melon
• 112990 Combination livestock farming (except dairy, poultry)
• 112310 Egg production, chicken
• 111333 Strawberry Farming
• 111334 Berry (except strawberry) Farming
• 111336 Fruit and tree nut combined

• Importantly, choosing an NAICS code for your state filing does not limit the type of business or farming you can do. Although the code should correspond with your predominant industry, it is primarily a record keeping tool.

Step 5 - Determine if you need to register a trade name with your town clerk

• If the farm business will be structured as a sole proprietorship, and you do not intend to register with the Secretary of the State, then you likely need to register your trade name (a.k.a. doing business as (DBA)) with your town clerk.

Tip: Registering a trade name will give you the paperwork you need to open a business bank account and carry out other transactions.

• The town clerk may charge a fee for registering the trade name, typically $10 - $20.
• If your farm is structured as an LLC or other entity registered with the Secretary of the State, you likely do not need to register a trade name unless you will be operating under a name different than your entity name.
  • For example, if 123 Farm Road, LLC is the state-registered business, but the owners sell products under the name Happy Acres Farm, then that DBA should be registered with the local municipality.
• Learn more about trade names and find forms through CT.gov
• A comprehensive explanation of trade names is available through the Secretary of the State’s office.

Step 6 - Determine if you need an Employer Identification Number (EIN)

• As per the IRS’s guidance, “Generally you need an EIN to:

• Hire employees
• Operate a partnership or corporation
• Pay sales and excise taxes
• Change business structures or ownership
• Administer certain trusts, retirement plans, and estates”

• There is no cost to apply for an EIN and it is quickly processed.
• Learn more about EINs through the IRS’s Publication 1635, Employer Identification Number: Understanding Your EIN

Taxes

Step 1 - Any farmer selling goods must apply for a Sales and Use Tax Permit with the CT Department of Revenue Services (DRS) and must collect sales tax on the sale of taxable goods;

• Taxable goods include cut flowers, flowering plants, bulbs/tubers, livestock, and poultry (unless sold to another farmer), feed, certain seeds, plant material, compost, Christmas trees, wreaths, carved and decorated pumpkins;
• Sales tax exemptions are provided for food products: This includes fruits and vegetables, maple syrup, honey, eggs, cider, cakes, and pies. Note that candy and soda are not considered food products and are taxable;
• Depending on what goods are sold, a farm business may not need to collect sales tax. However, the business still needs to file monthly, quarterly, or annual reports to DRS;
• There is an application fee of $100. The permit is valid for two years and renewal is free;
• Complete CT Form Reg-1 through the CT Department of Revenue Services MyConnect portal;
• See important guidance here: Farmers Guide to Sales & Use Tax.

Step 2 - Apply for a Farmer Tax Exemption Permit

• A Farmer Tax Exemption Permit allows a farmer to purchase agricultural goods and materials as well as motor vehicle fuels, all used exclusively in the agricultural production process, without paying Connecticut sales and use taxes and motor vehicle fuels excise tax;
• A farm business is eligible for the exemption permit so long as the farm has gross sales of $2,500 annually or if it is a starter farm that anticipates a minimum of $2500 in sales annually and plans to remain in business at least two years.;
• The exemption permit must be renewed every two years;
• Complete CT Form Reg-8 through the CT Department of Revenue Services MyConnect portal. Find ‘Tax Exemptions/Certificates’ under the ‘More...’ tab;
• See important guidance here: Farmers Guide to Sales & Use Tax.

Step 3 - Plan and prepare for Municipal Personal Property taxes

• As a farm business, plan to file a Personal Property Declaration with your municipality. Businesses, including farms, are required to pay taxes on all property owned by the business;
• The declaration form should arrive in the mail from your Assessor’s office in the fall. Contact your Assessor’s office ahead of time to become familiar with the process;
• Explore potential property tax exemptions for farms that are available in your municipality.

Step 4 - Apply for Farm Plates (if applicable)

• If you have a Farm Tax Exempt Permit and a vehicle you use exclusively for agricultural production, you may be eligible for farm plates from the Department of Motor Vehicles;
• Learn more through the CT Department of Agriculture and apply through the CT Department of Motor Vehicles.

Step 5 - Learn more about federal income taxes

• Find definitions and guidelines on federal income taxes here: IRS Publication 225 (2024), Farmer's Tax Guide

Step 6 - Local Property Tax and Public Act 490

• PA 490 allows qualifying farm, forest, and open space land to be assessed at its use value rather than fair market value, resulting in significant property tax savings;
• Eligibility requirements:
  • Land must be actively used for farming;
  • Minimum acreage requirements may apply depending on use;
  • Application must be filed with your municipal assessor.
• Application deadline: September 1 – October 31 each year, but once approved, you should only have to apply once;
• If PA 490 land is sold or converted to a non-qualifying use within ten years, then a conveyance tax penalty may apply and a new application may be required;
• Contact your municipal assessor’s office for specific eligibility requirements and application forms.