You asked whether a business entity that makes no profit and is not organized to make a profit is nevertheless subject to the business entity tax.

Yes. The business entity tax applies to any foreign or domestic S corporation, limited liability company, limited liability partnership, or limited partnership that is required to file an annual report with the secretary of the state. Such entities are liable for the tax even if they are inactive, unprofitable, or no longer doing business as long as they have not filed appropriate dissolution or withdrawal documents with the secretary of the state. The tax is $ 250 per year (CGS § 12-284b).

For your further information, we enclose a copy of the Department of Revenue Services, Informational Publication IP 2003(15), which explains the tax in greater detail.

JL: ro