DRS: Partnership/Limited Liability Company - Nexus

Partnership/Limited Liability Company - Nexus


A partnership (including a limited liability partnership and a limited liability company treated as a partnership for federal purposes) must file Form CT-1065, Connecticut Partnership Income Tax Return, if it:

  1. Is required to file a federal Form 1065, U.S. Partnership Return of Income, and
  2. Has any income, gain, loss or deduction derived from or connected with Connecticut sources.

Limited liability partnerships, limited partnerships, S corporations, limited liability companies (including single member limited liability companies) may also be liable for the Business Entity Tax. If liable, the entity must file Form OP-424 annually.  For further information, please refer to IP 2008(26), Business Entity Tax and SN 2006(12), 2006 Legislative Changes Affecting the Business Entity Tax.

Nonresident partnerships that have one or more resident partners do not have to file Form CT-1065 merely because they have a partner or partners who are residents. However, a partnership must file if it has income, gain, loss or deduction derived from or connected with sources within Connecticut.

Resident individual partners must include the amount of their distributive share of partnership income on Form CT-1040, Connecticut Resident Income Tax Return. A Connecticut resident is an individual whose domicile is in this state or an individual whose domicile is not in this state but who maintained a permanent place of abode in Connecticut and spent more than 183 days in the state during the taxable year.

Nonresident individual partners must include their distributive share of partnership items on Form CT-1040NR/PY, Connecticut Nonresident or Part-Year Resident Income Tax Return.

A partner that is a corporation may be required to file Form CT-1120, Corporation Business Tax Return.

A group return, Form CT-G, Connecticut Group Income Tax Return, may be filed by a partnership with ten or more qualified electing nonresident partners.

A company, partnership, or S corporation that is not otherwise subject to income taxation or a requirement to file a return in this state under Chapter 208 or Chapter 229 of the Connecticut General Statutes should refer IP 2010 (29.1), Q & A on Economic Nexus, to determine if they are subject to tax in Connecticut.

For more information, see PS 92(12.1), Limited Liability Companies.

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