LLC Cost in Colorado – How Much to Pay for an LLC


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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.

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.

LLC Service

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$99 per year

  • Standalone registered agent service

  • Take you through all steps

  • LLC formation package available

$125 per year

  • 1 year free service along with LLC formation package

  • Fast service

  • Flat rate, no hidden cost

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. 

StateFiling FeeAnnual Fee/Biennial Fee
Colorado LLC$50$10 (Annual)
Nebraska LLC$110 (In-Office)
$100 (Online)
$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. 

Other Costs

How Much Does It Cost to Maintain an LLC in Colorado

To maintain an LLC in Colorado you will need to pay an annual fee of $10 along with State business tax at the rate of 4.65% and federal taxes.

If you haven’t yet formed an LLC in Colorado, you’re probably wondering: How much does it cost? There are a few factors you should consider. First, you must choose a business name for the company. While there are several free or low-cost business names available, it is wise to choose one that fits the company’s identity. In addition, you should open a business bank account so you can separate your personal expenses from those incurred for the business.

The cost of the annual report for your Colorado LLC will vary. Annual report fees generally cost $10. You will have to pay this fee if your company hires employees. You can also find out more about the tax structure from the Colorado Department of Revenue. Additionally, most companies offer annual report services, but they charge a service fee. Depending on the type of business you run, the cost of filing will vary.

The cost of hiring a registered agent for your Colorado LLC will range from $30 to $300. Ensure that you find a reputable provider and choose one that offers the services you need. Your registered agent will be a point of contact for federal tax notices and other paperwork. When choosing a registered agent, remember to choose a Colorado registered agent who has a good reputation. The fees can add up quickly if you don’t read the fine print carefully.

An Employer Identification Number is another important aspect of your LLC. The EIN is a tax identification number similar to a social security number and is used by many companies for tax purposes. With an EIN, you can hire employees, open a business bank account, collect sales tax, and more. Applying for a number through the Internal Revenue Service is free and the number is available right away.

Other things to keep in mind when deciding how much it costs to maintain an LLC in Colorado are filing fees and filing periodic reports. An LLC is required to file Periodic Reports every year, and any late filings are subject to a $50 penalty. While the penalty may seem minor, the costs are minimal when compared to the effects of noncompliance. If you’re wondering, it’s worth it for peace of mind.

While it’s not mandatory to file an operating agreement in Colorado, operating agreements are a vital part of an LLC’s governance. Operating agreements outline the structure of a business, explain how financial management is handled, and list specific members. They also detail any additional regulations the company should follow. So, whether you’re starting a new business or trying to sell an existing one, it’s a good idea to have an operating agreement.

Before you file articles of organization, you should also reserve a business name. A business name must be unique and not infringe on the trademarks of any other registered businesses. This service typically costs $10-$50. You can also purchase a fictitious or ‘doing business as’ name to save money on the expense. While this initial cost is relatively low, you’ll still need to pay ongoing fees to ensure your business remains compliant with the laws.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

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.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

The cost of Colorado is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

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