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.
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
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.
Those considering starting a limited liability company (LLC) in Colorado have a variety of options to choose from. Some services charge a small fee to file the necessary paperwork, while others are free to use. The cost of maintaining an LLC can vary based on the size of your business and the regulatory board responsible for issuing your license. In addition, some businesses may require additional licensing, such as insurance and bonding.
An LLC formation service can take care of all the work and provide you with a clear and concise understanding of how to set up an LLC in Colorado. They have all the necessary forms and information you need. They also have a registered agent, which is a required component of forming an LLC. A registered agent is a person or business entity that serves as the primary point of contact between the business and the state. The registered agent also accepts legal documents on behalf of the LLC.
For the most part, an LLC formation service will have a full understanding of all the legal and regulatory requirements. However, they may not have all the information that you need. You may want to consider hiring an attorney for a consultation to answer all of your questions. An attorney will provide you with essential business advice and help make the right decisions. They can charge as little as $150 to as much as $350 per hour, depending on the services they offer.
The best way to figure out how much it costs to maintain an LLC in Colorado is to check with your local government or a formation service. If you live in an area that is highly regulated, you may also need to obtain additional licenses or permits from the local government. Some of these licenses and permits are only required once, while others are required annually. You can also consult with the Colorado Department of Regulatory Agencies for more information.
The costs of maintaining an LLC in Colorado can be as low as $1 and as high as $300 or more, depending on the service you choose. Some services will even include a registered agent for free. This is a smart move if you plan on opening a business bank account to keep your personal and business expenses separate. While this service does cost money, it is definitely worth it if you plan on opening a business bank account.
The cost of maintaining an LLC in Colorado is actually quite low compared to some other states. The cost of filing an annual report is only $10, and it is required to be filed annually. You can also opt to file your report electronically, which will reduce your filing costs.
Choosing the right LLC formation service will save you time and money, and help you avoid the pitfalls of forming an LLC on your own. The best services will have all the information you need to get started with your LLC, and will even give you a free registered agent. You may even want to consider hiring an attorney to help you navigate the minefield that is the LLC formation process.
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.
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.