Connecticut · Graduated income tax, pass-through entity tax
CPA, bookkeeping & fractional CFO services in Connecticut
Connecticut has a graduated personal income tax, a pass-through entity tax for partnerships and S corporations and a strong base of insurance, finance and advanced manufacturing companies. CPA Torrance is a CPA-led firm based in Torrance, California that provides bookkeeping, tax planning, tax filing and fractional CFO support to Connecticut businesses remotely.
- Serving all of Connecticut remotely
- Connecticut CT-1065/CT-1120SI and PET tracked for you
- Monthly reporting included
In short
What is the Connecticut pass-through entity tax?
Connecticut taxes partnerships and S corporations at the entity level through its pass-through entity tax, and owners receive a credit on their personal returns. The tax began as mandatory and later became elective. Because the entity pays the tax, owners may be able to deduct it federally despite the SALT cap.
- State income tax
- Graduated
- State sales tax
- 6.35%
- Key business tax
- Pass-through entity tax
- How we serve
- Remotely, statewide
Services in Connecticut
What we do for Connecticut business owners
From Hartford insurance firms and Stamford financial companies to New Haven healthcare practices and aerospace suppliers, Connecticut owners need careful pass-through planning. We provide monthly bookkeeping, federal and Connecticut tax planning, filings and CFO reporting from one coordinated team.
Bookkeeping Services
- Monthly reconciliations in QuickBooks Online
- Connecticut sales and use tax tracking
- Payroll and contractor payment review
- Monthly profit and loss and balance sheet
- Catch-up and clean-up bookkeeping
Tax Planning & Strategy
- Entity and S corporation review
- Connecticut pass-through entity tax review
- Federal and state estimated payments
- Multi-state income review
- Year-end tax planning meeting
Tax Filing & Compliance
- Federal business returns (1120, 1120S, 1065)
- Connecticut CT-1065/CT-1120SI, CT-1120 and PET returns
- Owner individual returns
- IRS and state notice help
- Due-date tracking for every filing
Fractional CFO Services
- Cash-flow forecasts
- Budget versus actual reviews
- Margin and pricing analysis
- Lender- and investor-ready reporting
- Growth and hiring plans
Connecticut tax planning
Planning around Connecticut taxes
Connecticut planning combines the pass-through entity tax, graduated personal rates, New York commuter issues and federal planning.
Book a 15-min callPass-through entity tax
We model whether paying at the entity level saves you money and handle the filings and estimates.
New York commuters
Owners working in New York need credits applied correctly so income is not taxed twice.
Aerospace suppliers
Manufacturers need job costing and research credit review.
Who we work with
Connecticut industries we serve
We work with owner-led businesses across Connecticut, with experience in the industries that drive the state economy.
Insurance and finance
Agencies, advisors and financial firms.
Aerospace and defense suppliers
Precision manufacturers with job costing.
Healthcare practices
Medical and dental practices.
Professional services
Law, consulting and engineering firms.
E-commerce sellers
Online brands with Connecticut sales tax, inventory and multi-channel books.
Professional firms
Consultants, agencies and law firms billing by the hour, project or retainer.
Why Connecticut businesses choose CPA Torrance
Areas we cover
Serving businesses across Connecticut
Businesses in Hartford, Stamford, New Haven, Bridgeport, Norwalk work in insurance, finance, aerospace manufacturing, healthcare and education. CPA Torrance helps Connecticut businesses, including those owned from out of state, stay compliant and organized through remote meetings.
- Hartford
- Stamford
- New Haven
- Bridgeport
- Norwalk
- Greenwich
- Danbury
- Waterbury
- West Hartford
- Milford
- Video meetings on your schedule
- Secure document portal for statements and returns
- Cloud accounting you can see any time
FAQ
Connecticut business tax and accounting questions
Not covered here? A 15-minute call gets you a straight answer for your situation.
What financial services can CPA Torrance provide to Connecticut businesses?
We provide monthly bookkeeping, federal and Connecticut tax planning, business tax filing and fractional CFO services. Everything runs from one set of books, so your bookkeeper, CPA and CFO advisor work from the same numbers.
Is the Connecticut pass-through entity tax still mandatory?
It became elective for later tax years. We review each year whether electing is worth it for your business.
I live in Connecticut and work in New York. How am I taxed?
You generally pay New York tax on New York-source income and claim a Connecticut credit. We prepare both returns.
What is the Connecticut sales tax rate?
The general rate is 6.35%, with different rates for some items and services.
Can CPA Torrance work with Connecticut businesses remotely?
Yes. We serve businesses across Connecticut, including Hartford, Stamford, New Haven, Bridgeport, Norwalk, Greenwich, Danbury, Waterbury, West Hartford and Milford, through video meetings, a secure document portal and cloud accounting you can see any time. Our office is in Torrance, California.
How do I get started?
Book a 15-minute call or request a free financial assessment. We review your books, tax position and systems and recommend the right mix of support for your Connecticut business.
Get your Connecticut books and taxes in order.
Book a call to review bookkeeping and tax planning for your Connecticut business.