How Much Does an LLC Cost in Colorado
Think starting an LLC has to break the bank? Colorado might just change your mind. Form an LLC in Colorado for as little as $50.
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Here are the following costs to consider:
- Articles of Organization: $50
- Statement of Foreign Entity Authority: $100
- Periodic Report: $25
- Permits and Licenses: $4–$16
- Business Taxes: 4.4% of taxable income
- Registered Agent: $0, or $100-$300/yr
- Operating Agreement: $0, or up to $500+
- Employer Identification Number: $0, or $50 to $99
- BOI Report: $0, or $25 to $149
- Optional Fees: Up to $3,000+
In 2023, Colorado had the most new business applications in the U.S. This thriving business scene suggests forming an LLC in the Centennial State could be a good idea.
The question is, how much for an LLC in Colorado? Read on to see how much it costs to form an LLC in Colorado.
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Colorado LLC Articles of Organization Fee
Cost: $50[1]
To form an LLC in Colorado, you must submit the Articles of Organization to the Secretary of State. Once the documents are approved, your LLC will be recognized as legally separate from you.
A Colorado LLC's Articles of Organization contain the following information:[2]
- Limited Liability Company name
- Business address
- Registered agent name and address
- Management type (manager or member-managed)
- Name and address of the person forming the LLC
The person forming the LLC doesn't have to be the owner or member of the business.[2]
You can only file the Articles of Organization online. The Colorado Secretary of State accepts Visa, Mastercard, American Express, and Discover.[3]
A manager-managed LLC means only the designated manager is responsible for the daily operations. Alternatively, an LLC could be member-managed so all owners share equal responsibility in managing the business.
Colorado Statement of Foreign Entity Authority Fee
Cost: $100[1]
If your LLC is already established in a different state and you want to expand your business to Colorado, you need to register it as a foreign LLC.
Foreign LLCs in Colorado must submit a Statement of Foreign Entity Authority to the Secretary of State with the filing fee. Only online filings are accepted.[1][4]
Be sure to file the correct form. Otherwise, you'll have to file a Statement of Correction and an additional $150 fee.[1][5] This can only be filed in person or by mail.
You must register a trade name if your foreign LLC's original name is unavailable in Colorado. This assumed name becomes your LLC's official business name only in Colorado.
The cost to form an LLC stays the same regardless of the number of its members or managers. A domestic LLC costs $50, while a foreign LLC costs $100.[1]
Colorado LLC Periodic Report Fee
Cost: $25 each year[6]
All LLCs in Colorado must file a Periodic Report with the Secretary of State. It can only be filed online. In other states, this is called an annual report. A Periodic Report contains the LLC's updated business address and registered agent details.[7]
The due date is two months after your LLC's anniversary month. However, you can file it up to two months before the anniversary month. Therefore, if your LLC was formed in July 2024, you must file the Periodic Report between May 2025 and September 2025.[8]
You can't use the Periodic Report to change the LLC's name or jurisdiction. You must file a separate Articles of Amendment for that.
Colorado imposes a $50 penalty for periodic reports filed after the due date.[1] You must also file a Statement Curing Delinquency if you fail to settle the Periodic Report fee and penalty. This costs an additional $100.[1]
Colorado LLC Permits and License Fees
Cost: $4–$16[9]
Colorado does not have a state business license. However, you must have a sales tax license if your LLC sells taxable goods in the state.[9]
Colorado's sales tax license costs between $4 and $16, depending on when you apply for it. Licenses expire on December 31 of odd-numbered years. It must be renewed every two years for a $16 renewal fee.[9]
| Timeframe Applying for a Sales Tax License | Fee Amount |
|---|---|
| January through June (even-numbered year) | $16 |
| July through December (even-numbered year) | $12 |
| January through June (odd-numbered year) | $8 |
| July through December (odd-numbered year) | $4 |
Additionally, you must pay a $50 deposit when applying for a new Colorado Sales Tax account.[9] So if you're getting a new account and a sales tax license for one store, the total cost is $66.
Once your business collects and pays $50 in state sales taxes, the $50 deposit will automatically be refunded.[9]
Additionally, your LLC may need to get local business permits. If your LLC does business in two cities, you may need to get a separate license for each city. The local business permit fees vary per city and could be renewable yearly.
Colorado LLC Taxes
Cost: 4.40% state income tax[10]
Colorado imposes a flat income tax rate. Additionally, LLC members must pay federal income taxes.
2024 Federal Income Tax Rates:[11]
| Tax Rate | Taxable Income |
|---|---|
| 10% | $0 to $11,000 |
| 12% | $11,001 to $44,725 |
| 22% | $44,726 to $95,375 |
| 24% | $95,376 to $182,100 |
| 32% | $182,101 to $231,250 |
| 35% | $231,251 to $578,125 |
| 37% | $578,126 and up |
Self-employed LLC members must also pay the 15.3% federal self-employment tax.[12] This tax covers Social Security and Medicare contributions.
The fees that you'll incur when forming an LLC can be claimed as tax deductions. You can write off the following expenses:
Colorado LLC Optional Fees
While the Colorado LLC fees below are optional, some are unavoidable depending on your business needs. For example, obtaining a Certificate of Good Standing is often necessary when opening a business bank account.
| Colorado LLC Optional Fees | Cost |
|---|---|
| Expedited Services | $150 |
| Registered Agent Services | Up to $300+ |
| Operating Agreement | Up to $500+ |
| Employer Identification Number | $0 to $99 |
| BOI Report | $0 to $149 |
| LLC Name Reservation | $25 |
| LLC Trade Name | $20 |
| Statement of Correction | $150 |
| Certificate of Amendment | $25 |
| Statement of Change | $10 |
| Certified Copy of Documents | Free |
| Certificate of Good Standing | Free |
| Website Domain | $10 to $20 |
| Business Insurance Premiums | Varies |
Colorado LLC Expedited Service Fee
Cost: $150[1]
Colorado offers expedited services to process your LLC application faster. But this is only available for paper filings.
Only a few forms can be filed in person or by mail in Colorado. Most forms, like the Articles of Organization and the Articles of Amendment, must be filed online.
You can form a Colorado LLC immediately if you form it online. Meanwhile, paper filings can take a week or more. Depending on the volume of applications being reviewed.
Colorado LLC Registered Agent Fee
Cost: Up to $300+
A registered agent is responsible for receiving business and legal documents on behalf of your LLC. This includes government notices, tax forms, and annual reporting forms.
Colorado is one of the few states where an LLC can serve as its own registered agent.[13] Alternatively, consider hiring a registered agent to let a professional handle your LLC's legal documents.
You'll need to get a person's consent before appointing them as a registered agent. The consent form is attached to the Articles of Organization form.
Colorado LLC Operating Agreement Fee
Cost: $0, or up to $500+
LLCs in Colorado are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.
An LLC operating agreement contains the following:
- The roles and responsibilities of each member
- How new or departing members will be treated
- How business profits and losses will be divided
Ideally, you should already have a signed Operating Agreement before forming an LLC in Colorado. But if your LLC is already formed, you can always draft it yourself after.
Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.
You can write your own with free online operating agreement templates. If you want a professional to create it for you, LLC services usually offer this as a part of their packages for much less than attorney costs.
Employer Identification Number
Cost: $0, or $50 to $99
Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.
You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:
- Northwest Registered Agent: $50
- Bizee: $70
- ZenBusiness: $99
Single-member LLCs in Colorado don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.
Yes. Separating your LLC's finances from personal assets is a requirement of liability shielding. Use a separate bank account to accept payments and pay business expenses to prevent piercing the corporate veil .
BOI Report
One-Time Cost: $0, or up to $149
The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 90 calendar days of your LLC's formation.
[14]
It includes information about the LLC's beneficial owners, including name, birth date, and address.
FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:
- Northwest Registered Agent: $25
- LegalZoom: $149
- ZenBusiness: $149
You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.
Colorado LLC Name Reservation Fee
Cost: $25[1]
If you've already got a business name but you're not yet ready to form an LLC, you can reserve your desired name first. Paying the name reservation fee will prevent others from using that name for 120 days.[15]
You can renew the name reservation for the same price but with a different form. Both reservation and renewal can only be done online.[1]
Check online to see if your business name is available as a web domain. Even if you don't plan to make a business website today, you may want to buy the URL to prevent others from acquiring it.
Colorado LLC Trade Name Registration Fee
Cost: $20[1]
A trade name (also known as "Doing Business As" or DBA) allows your LLC to operate under a name different from its legal name registered with the state.
Some LLCs use a DBA for branding purposes. It's also ideal if you want to use a name without "LLC" at the end. Make sure the DBA you want is still available, as the registration fee is non-refundable.
There is no need to renew your trade name in Colorado as long as your LLC remains in good standing.[16]
A trade name registration allows a business to operate under a name different from its legal name. Meanwhile, a trademark is an intellectual property protection that legally protects your brand name, logo, or slogan at the national level.
Colorado LLC Statement of Correction Fee
Cost: $150[1]
After your Colorado LLC application is approved, review all the details of the Articles of Organization carefully.
If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing a Statement of Correction.
Colorado has different forms for every type of correction. For example, the form correcting a business address differs from LLC name corrections.
Colorado LLC Articles of Amendment Fee
Cost: $25[1]
Your Colorado LLC's Articles of Organization contains specific details about your business. Should these details change, you must submit a Certificate of Amendment to the Secretary of State.
File a Certificate of Amendment if you:
- Add, remove, or change an LLC member or manager
- Change the business purpose
- Modify the management structure
A Statement of Correction is for fixing mistakes in initial filings. Meanwhile, the Articles of Amendment are for updating key details as the LLC evolves.
Colorado LLC Statement of Change Fee
Cost: $10[1]
A Statement of Change updates your Colorado LLC's information with the Secretary of State.
A Statement of Change can be used for:
- Changing the LLC name
- Updating the principal office address
- Appointing a new registered agent
Both forms change certain details of the LLC. However, you need to use one form or the other depending on which information you want to update.
Colorado LLC Certified Copy of Documents
Cost: Free[1]
Certified copies of documents verify that your LLC is legitimate and that its details are accurate.
You might need these for circumstances like opening a business bank account or expanding your LLC in another state.
Additionally, some LLCs keep certified copies of their initial Articles of Organization and Articles of Amendment (if any) for recordkeeping purposes.
Colorado LLC Certificate of Good Standing
Cost: Free[1]
A Certificate of Good Standing, also known as a Certificate of Existence, is an official document by the Colorado Secretary of State. It verifies that your LLC is updated with all state filings and has paid all its state fees and taxes.
You might need a Certificate of Good Standing to:
- Open a bank account
- Apply for business loans
- Qualify for business insurance
- Conduct business as a foreign LLC
In Colorado, you can download a printable Certificate of Good Standing online for free.
Contact the Colorado Secretary of State to ask why your LLC is in bad standing. The most common reasons include:
- Failure to file the Periodic Report
- Failure to pay fees or penalties due
- Not having a registered agent in Colorado
Pay any outstanding fees and penalties. Then, file a Statement Curing Delinquency along with the $100 filing fee.[1]
Business Website Domain Fee
Annual Fee: $10 to $20
A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.
Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.
Business Insurance Premiums
Cost: Varies
Most businesses with one or more employees in Colorado must have workers' compensation insurance.[17] Colorado does not have a state fund for workers' compensation, so you must self-insure or get it from a private company.
You can also check Pinnacol Assurance. It's the largest workers' compensation insurance carrier in Colorado.[18]
You might also be required to get other types of insurance:
- General liability insurance
- Commercial property insurance
- Professional liability insurance
- Cyber liability insurance
Bottom Line
In summary, the Articles of Organization fee costs $50 in Colorado. Periodic reports are filed yearly, with a $25 filing fee.
Set Up Your LLC - $0 + State Fees
- Free business plan included (no credit card required)
- Lifetime compliance alerts
- Comprehensive name check
- Lifetime customer support via email and phone
Business Formation Service - $39 + State Fees
- Form Your LLC, Corporation, or Nonprofit Today
- A Fully-Formed Business
- Registered Agent Service
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Economy Package at $149 + State Filing Fees
- Name check service
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Starter - $0 + State Filing Fees
- Includes 1 optional free year of Worry-Free Compliance that renews at $199/year
- Standard filing speed
- 100% accuracy guaranteed
- Other services are available with additional costs
The total cost will increase depending on the additional services, documents, and licenses your LLC needs. Ultimately, it's never a bad idea to set aside an extra budget for unexpected fees.
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References
- ^ Colorado Secretary of State. Fee Schedule, Retrieved 06/17/2024
- ^ Colorado Secretary of State. What You Need to File Articles of Organization for a Limited Liability Company (LLC), Retrieved 06/17/2024
- ^ Colorado Secretary of State. Limited Liability Company (LLC), Retrieved 06/17/2024
- ^ Colorado Secretary of State. Statement of Foreign Entity Authority, Retrieved 08/06/2024
- ^ Colorado Secretary of State. Statement of Correction Correcting a Mistakenly Filed Domestic Entity that was meant to be a Foreign Entity, Retrieved 08/06/2024
- ^ Colorado Secretary of State. Fee Schedule, Retrieved 08/05/2024
- ^ Colorado Secretary of State. Periodic Report, Retrieved 06/17/2024
- ^ Colorado Secretary of State. Q4. When is my Periodic Report due?, Retrieved 08/06/2024
- ^ Colorado Department of Revenue. How to Apply for a Colorado Sales Tax License, Retrieved 06/17/2024
- ^ Colorado Department of Revenue. Individual Income Tax Frequently Asked Questions, Retrieved 06/17/2024
- ^ IRS. Federal Income Tax Rates and Brackets, Retrieved 06/17/2024
- ^ IRS. Self-Employment Tax (Social Security and Medicare Taxes), Retrieved 06/17/2024
- ^ Colorado Secretary of State. Business FAQs, Retrieved 06/17/2024
- ^ Financial Crimes Enforcement Network. Beneficial Ownership Information, Retrieved 10/02/2024
- ^ Colorado Secretary of State. Statement of Reservation of Name, Retrieved 06/17/2024
- ^ Colorado Secretary of State. Business FAQs, Retrieved 06/17/2024
- ^ Colorado Department of Labor and Employment. Insurance Coverage Requirements, Retrieved 06/17/2024
- ^ Pinnacol Assurance. Your Top Choice for Workers' Compensation, Retrieved 06/17/2024
Nicole King is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Nicole King at nicole.king@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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