How to Syndicate an Apartment Deal in Connecticut: A Sponsor Guide

On this page

1. What is the Connecticut Rule 506 notice filing?
2. How do you form the deal LLC in Connecticut?
3. What Connecticut landlord and tenant rules should a sponsor know?
4. What does Connecticut charge when an apartment building sells?
5. How does Connecticut property tax work for an apartment building?
6. Does Connecticut tax the deal LLC or its investors?
7. How DoorRaise fits in
8. FAQ

To syndicate an apartment deal in Connecticut, you form the deal LLC (or register an outside LLC) with the Connecticut Secretary of the State, raise under Rule 506(b) or 506(c), and file a Form D notice with a $150 fee through NASAA's EFD. Connecticut is a small state with many towns, and each town sets its own mill rate, so the same rent roll can carry very different tax bills a few miles apart.

This is the Connecticut version of our general syndication guide. It covers what changes when the building, the investors or both are in Connecticut. It is general information, not legal advice.

What is the Connecticut Rule 506 notice filing?

Connecticut treats Rule 506 interests as federal covered securities and asks for a notice: a copy of the SEC Form D and a fee, filed through the NASAA Electronic Filing Depository (EFD) for the Connecticut Department of Banking. DoorRaise's state data, from NASAA's fee schedule, lists the fee as $150. EFD shows the exact amount before you pay, and that amount wins. See blue sky notice filings and blue sky fees by state.

How do you form the deal LLC in Connecticut?

A Connecticut LLC is formed by filing a Certificate of Organization with the Connecticut Secretary of the State, and it files an annual report each year; check the Secretary's business site for the current fee, which several guides list at $80. An LLC formed elsewhere that will own Connecticut property registers as a foreign LLC. Missing the annual report can cost the LLC its good standing, which lenders and title companies check at closing. See forming an LLC for a syndication and foreign qualification in the property state.

What Connecticut landlord and tenant rules should a sponsor know?

Connecticut caps a residential security deposit at two months' rent, or one month for a tenant who is 62 or older (General Statutes 47a-21). The landlord holds the deposit in an escrow account, pays the tenant interest at a rate the state sets each year, and returns it with an itemized list of deductions within 21 days after the tenant leaves or within 15 days after the tenant gives a forwarding address, whichever is later. Eviction follows the state's notice to quit and summary process steps, which the courts run on set forms. Your property manager should use current Connecticut forms and know the interest rule, because it applies to every unit.

What does Connecticut charge when an apartment building sells?

A deed in Connecticut carries a state conveyance tax and a municipal conveyance tax, each a percentage of the price, and the rates for a building with five or more units are higher than for a single-family home. The seller usually pays. The rates are set in statute and the Department of Revenue Services publishes them, so get the exact figure from your title company and put any share you owe in sources and uses.

How does Connecticut property tax work for an apartment building?

Each town assesses property for its grand list and applies a mill rate (dollars of tax per $1,000 of assessed value). State law requires every town to revalue at least every five years, so a purchase can be followed by a reassessment that raises the bill. Owners can appeal to the town's board of assessment appeals. Underwrite from the town's current mill rate and your purchase price, not the seller's tax bill. See property tax reassessment in apartment underwriting.

Does Connecticut tax the deal LLC or its investors?

Connecticut taxes income earned in the state, and a pass-through entity may have an entity-level tax or withholding for nonresident members. Ask your CPA early; the investor side is in state tax returns for nonresident syndication investors.

How DoorRaise fits in

DoorRaise helps sponsors raise equity for apartment buildings from their friends and followers under Rule 506(b) or 506(c), and verifies that every investor is accredited before they sign. Investors fund by wire into the deal's escrow account at Enterprise Bank & Trust. By default DoorRaise files the notice in the property's state; on new deals, the first investor from another state pays that state's filing fee by card when they sign, later investors from that state pay nothing, and the sponsor never fronts it. Sponsors pay a $1,500 setup fee (non-refundable) and a flat $5,000 a year administration fee; see pricing or how it works.

FAQ

How much is the Connecticut Rule 506 notice fee?

$150, per DoorRaise's state data from NASAA's fee schedule. EFD shows the final amount before you pay.

How much can a Connecticut landlord charge as a security deposit?

Two months' rent, or one month for a tenant who is 62 or older.

How often must a Connecticut town revalue property?

At least every five years.

Does a Connecticut deed carry a transfer tax?

Yes, a state and a municipal conveyance tax; get the rates from your title company.

Sources

• Connecticut Secretary of the State
• NASAA: Form D fee schedule
• Connecticut Department of Banking: securities
• Connecticut Department of Revenue Services

This article is general information as of November 2026, not legal, tax or investment advice. State laws and fees change: confirm with the state agency and your own attorney before you file. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.