Perhaps you are hoping to form a Colorado LLC. People assume how to start an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Colorado.
On this page, you’ll learn about the following:
Colorado LLC Cost of Filing
Here are the costs involved in forming an LLC in Colorado.
Cost of Filing Formation Certificates
The Colorado Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Colorado Secretary of State.
Colorado Domestic LLC
- Online Filing costs $50.
- Colorado periodic report (Annual report) fee $10
- Penalty for late filing $50
Colorado Foreign LLC
- Online Filing costs $100
- Periodic Report cost $10
- Penalty for late filing $50
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Colorado LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Colorado, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Our Rating & Pricing
#1 TOP PICK
Free LLC Setup
$49 + State Fees
$299 + State Fees
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Colorado Department of Regulatory Agencies for regulatory boards or agencies requiring licensing.
Taxes to Be Paid By LLCs in Colorado
Since the LLCs have the pass-through status, they are not liable to pay income taxes to State or Federal as an LLC in Colorado. However, the members have to pay taxes separately while running a Colorado LLC.
State Business Tax
In a multi-member LLC, the net revenue is divided among all the members. Depending on their share of income, they will have to pay the state business tax at a 4.63% flat rate. For example, if the net income of the LLC is $100,00, each member will get their own share from this amount. Now, the members have to pay tax at 4.63% on the basis of that share.
Just like Colorado, states like Nevada, Ohio, Washington, Texas, Wyoming, and South Dakota don’t have corporate income taxes.
Cost Comparison Among States
Colorado is one of the cost-effective states to start an LLC. This state is bounded by states like Nebraska, Oklahoma, Kansas, and New Mexico. Here’s a cost comparison among the neighboring states.
|State||Filing Fee||Annual Fee/Biennial Fee|
|Colorado LLC||$50||$10 (Annual)|
|Nebraska LLC||$110 (In-Office) |
|$10 (Every 2 years)|
|Oklahoma LLC||$100||$25 (Annual)|
|New Mexico LLC||$50||$0 (No annual fee/report needed)|
|Kansas LLC||$160||$50 (Annual)|
Colorado is a rich state when it comes to starting a business. Having an LLC in Colorado helps members to make more revenue as the state does not have much tax burden for the corporations.
- Colorado Name Reservation: $25 for online filing
- Doing Business As (DBA): $30 for online filing
- Certified Document Copies: Free
- Certificate of Good Standing: Free
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Colorado LLC: $100
How Much Does It Cost to Maintain an LLC in Colorado
The fees for maintaining an LLC in Colorado are minimal, but are not free. There are state requirements you must meet to keep your business entity in good standing. One of the most important is obtaining a bank account for your business. This is important because it keeps business and personal expenses separate, which is useful for taxation and accounting purposes. You can also pay to register your LLC with the Secretary of State online.
Once your LLC is formed, you need to pay $50 for the filing of articles of organization with the Secretary of State, and another $25 to reserve the business name. To register for a Colorado LLC, you must first obtain an Operating Agreement, which is a set of written rules for running the LLC. This document is not submitted to the state, so you won’t need to pay any state fees for it. However, if you don’t have a lawyer, you can hire an online service to help you prepare the Operating Agreement. These sites typically charge $50 to $100 for this document.
There are annual reporting fees to pay to the Secretary of State. You must file Periodic Reports every year with the State. These reports are legal requirements, and you must file them by the first day of the month of the anniversary of the date of your LLC formation. Depending on the type of business you’re in, some businesses require bonding and insurance. In Colorado, you can also file a DBA to operate under a different name. Filing a DBA is simple and only requires a $10 filing fee.
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.