How to Start a Mortgage Brokerage in Connecticut: Department of Banking License and NMLS

Informational only: This article is general information, not legal or tax advice. Licensing rules, fees and forms change, so confirm each item with the Connecticut Department of Banking, the Secretary of the State and a qualified attorney or CPA before you file.

Connecticut does not issue a general business license. A mortgage brokerage is licensed by trade through the Department of Banking's Consumer Credit Division, and every application runs through the Nationwide Multistate Licensing System (NMLS). A mortgage brokerage needs two layers of licensing: a company license for the business itself and an individual license for each person who originates loans. Getting a mortgage broker license in Connecticut is manageable if you take the steps in order.

What You Need Before You Start

Gather these items first. A missing item usually stops the company application.

• A formed Connecticut entity, either a limited liability company (LLC) or a corporation, with the filing confirmed by the Secretary of the State
• A business name you have checked against the state record
• A Connecticut registered agent with a qualifying street address
• A federal Employer Identification Number (EIN) from the IRS
• A list of officers, directors, partners and members, plus everyone who will take applications or negotiate loan terms
• Ask the Department whether it requires a written compliance plan or office procedures
• NMLS accounts for the company and for each individual who will be licensed
• A budget that includes filing fees, NMLS fees, education costs and professional help, based on current fee schedules
• The Department's phone number, (860) 240-8200, for questions about Connecticut-specific requirements

Step 1: Confirm Which License Each Person Needs

Separate the roles before you file anything. The Consumer Credit Division licenses mortgage brokers, mortgage loan originators (MLOs), loan processors and underwriters, correspondent lenders, and small loan and sales finance companies, and it registers commercial financing providers. A brokerage usually needs a company license plus an MLO license for each person who originates loans.

Two points catch many new owners. If an officer, partner or member meets the statutory definition of a mortgage loan originator, that person must hold an MLO license, even if the company is the one applying. A person who only processes files or underwrites may fall under a different category, so ask the Department before you hire.

Step 2: Form Your Entity and Check the Name

Most brokerages are formed as an LLC or a corporation, filed with the Secretary of the State's Business Services Division through Business.CT.gov. Current forms and fees are at Business.CT.gov business forms and fees.

Search the name first with the free Connecticut online business search. A name must be distinguishable on the record from names already registered or reserved. Words that suggest a regulated activity, such as bank or insurance, require authorization. You can reserve an LLC name for 120 days for a $60 fee.

LLC

• Filing: Certificate of Organization (Domestic Limited Liability Company), $120
• Name: must include Limited Liability Company or an abbreviation such as LLC or L.L.C.
• Yearly: Annual Report, $80

Corporation

• Filing: Certificate of Incorporation (Domestic Stock Corporation), $250
• First report: Organization and First Report, $150
• Yearly: Annual Report, $150

Connecticut has no franchise tax or annual privilege tax on LLCs, but tax treatment depends on classification. An LLC taxed as a partnership or S corporation may elect the optional Pass-Through Entity Tax with the Department of Revenue Services (DRS), an election that is annual and irrevocable for that year. An LLC treated as a corporation pays the Corporation Business Tax of 7.5% of apportioned net income, with a $250 minimum, plus a capital base tax being phased out (0.16% for 2026, 0.11% for 2027, none from 2028). Companies with $100 million or more in total income, or filing in a combined unitary group, also owe a 10% surtax. Have a CPA model these options before you choose.

Step 3: Appoint a Registered Agent and Secure a Qualifying Address

Every corporation and LLC formed in Connecticut must keep a registered agent to receive legal correspondence. The agent must be a Connecticut resident at least 18 years old or a business entity registered with the Secretary of the State. The agent's business address must be a usual place of business in Connecticut, open during normal business hours with an authorized person present. A post office box or commercial mailbox does not qualify.

Your office location matters for NMLS too. Your main office is listed on the company application, and each additional office needs its own branch filing (Form MU3). Zoning and home-office rules come from your town, so call the town's planning and zoning office before you sign a lease or list a home address.

Step 4: Handle Trade Names and Local Approvals

If you will operate under a name other than your exact legal name, file a Trade Name Certificate with the town clerk where the business is primarily transacted. It is not filed with the Secretary of the State. The fee is $20, payable to the town clerk. See Business.CT.gov trade names guidance.

A business selling taxable goods or services must obtain a Sales and Use Tax Permit from DRS, which carries a $100 registration fee. Ask DRS whether this applies to the fees your brokerage charges, using DRS sales tax information. The permit is a tax registration, not a license.

Step 5: File the Company License in NMLS

The company application starts in NMLS. Each form covers a different part of the business:

Form	What it covers	Who or what it covers
MU1	Company license application	The brokerage entity
MU2	Control persons	Officers, partners, members and others with control
MU3	Branch locations	Each additional office
MU4	Individual licensing	Each loan originator

Not every Connecticut requirement is handled in NMLS. Jurisdiction-specific requirements are mailed to the Department, so filing in NMLS alone does not finish the application. Log every mailing. Confirm current NMLS and state fees in the Connecticut fee schedule in NMLS and on the Department's MLO licensing page, (860) 240-8200, before you budget.

Step 6: License Each Loan Originator

The federal SAFE Act requires 20 hours of NMLS pre-licensing education and the SAFE exam before an individual can be licensed as an MLO. Work through this sequence for each originator:

1. Create an individual NMLS account and gather education records.
2. Complete 20 hours of pre-licensing education from an NMLS-approved provider.
3. Pass the SAFE exam once the education is recorded.
4. Submit the MU4 application through your company, which sponsors the license.
5. Answer the background and disclosure questions accurately.
6. Track the Department's review and respond quickly to requests.

Ask the Department how many continuing education hours MLOs must complete each year and when they are due. Put the first renewal on the calendar on day one.

Step 7: Confirm Capital, Bond and Net Worth Requirements

Ask the Department in writing whether Connecticut requires your company to meet a minimum net worth, carry a surety bond or submit financial statements, and what amounts apply. This guide does not state those figures, so do not budget for any of them until you have the answer from the Department.

Step 8: Keep the Entity and Licenses Current

Business.CT.gov does not publish one flat deadline for all entities. Each entity sees its own next due date in its account, and widely reported practice for LLCs is a January 1 to March 31 window. The Annual Report also confirms your registered agent information. NMLS and state renewal dates run on a separate calendar. Confirm those deadlines and fees with the Department.

Common Mistakes to Avoid

• Looking for a general business license. Connecticut does not issue one. Your licenses come by trade.
• Sending trade name paperwork to the state. Trade name certificates go to the town clerk.
• Skipping MLO licenses for owners. An officer, partner or member who meets the MLO definition needs one.
• Using a mailbox as the registered agent address. A post office box or commercial mailbox does not qualify.
• Starting NMLS before the entity exists. Confirm the Certificate of Organization or Certificate of Incorporation is on record first.
• Assuming a turnaround time. The Secretary of the State does not publish a standard turnaround for ordinary filings. Expedited service costs $50 per transaction, is completed within 24 hours, and is available only for online filings.
• Marketing loans too early. Do not originate or advertise as a licensed brokerage until the Department approves the license.

Expected Results

If the entity is formed correctly, the registered agent qualifies, the NMLS application is complete and every originator has finished the required education and exam, you can reasonably expect the Department's review to move forward. The license is issued only after that review. Timing and outcome depend on the completeness of your filings and the Department's workload, so this guide does not promise an approval or a timeline.

Once licensed, the brokerage may place loans only within the scope of its license, and each originator may work only under a valid individual license. Plan for ongoing obligations: annual Secretary of the State filings, NMLS renewals, continuing education and records kept for examiners.

When to Get Professional Help

Consider a Connecticut attorney for entity structure and lending compliance, and a CPA for the tax classification and any surtax exposure. For business planning support, the Connecticut Small Business Development Center offers free advising. A professional can review your specific facts, which this article cannot.

Informational Notice

This article is informational, not legal or tax advice. Licensing requirements, fees and forms can change. Confirm every figure with the Connecticut Department of Banking at (860) 240-8200, the Secretary of the State, DRS and a qualified professional before you file.