Fact Checked by Editorial Staff
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.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
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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) $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
- 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
F.A.Qs
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.
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.
Maintaining an LLC involves ongoing expenses that must be taken into consideration when budgeting for the business. While setting up an LLC in Colorado may seem relatively straightforward and cost-effective, there are several recurring expenses that business owners must be aware of.
One of the primary costs associated with maintaining an LLC in Colorado is the filing fee required by the Secretary of State. This fee is due annually and typically ranges from $50 to $100, depending on the state. Failure to pay the filing fee on time may result in the LLC falling out of good standing with the state, which could lead to penalties or even dissolution of the company.
Another recurring expense that LLCs in Colorado must budget for is the annual report fee. Every year, LLCs are required to file an annual report with the Secretary of State, which provides updated information about the company, such as its members, managers, and registered agent. The annual report fee in Colorado is typically around $10 to $25, again depending on the state.
In addition to these recurring fees, LLCs in Colorado may also incur other costs, such as obtaining a business license or permits, hiring a registered agent, or maintaining business insurance. These expenses can vary depending on the nature of the business and its operating activities.
It is also important to note that while maintaining an LLC in Colorado does come with costs, the benefits of having a limited liability company often outweigh the financial burden. LLCs provide personal liability protection for the owners, which means that their personal assets are generally shielded from any business debts or legal claims.
Furthermore, the flexibility and ease of operation provided by an LLC make it an attractive option for many small business owners. The LLC structure allows for pass-through taxation, meaning that profits and losses are passed through to the owners’ personal tax returns, avoiding double taxation.
In conclusion, while maintaining an LLC in Colorado does come with costs, the benefits of having a limited liability company often outweigh the financial burden. It is important for business owners to budget for these expenses and be aware of the ongoing costs associated with maintaining an LLC. By staying informed and prepared, entrepreneurs can ensure that their LLC remains in good standing and continues to operate successfully.
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.