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.
One of the most significant costs of maintaining an LLC in Colorado is the annual filing fee required by the Secretary of State. This fee can vary depending on the state in which the LLC is formed and the specific requirements set forth by the Secretary of State. In addition to the annual filing fee, there may be other fees associated with maintaining an LLC, such as fees for amendments to the articles of organization or annual reports.
Another cost to consider when maintaining an LLC in Colorado is the cost of registered agent services. In Colorado, all LLCs are required to have a registered agent to receive legal documents and official notices on behalf of the company. Business owners can choose to act as their own registered agent, but many opt to hire a professional service for convenience and reliability. The cost of registered agent services can vary depending on the provider and the level of service required.
Business owners should also be aware of the potential costs associated with maintaining compliance with state and federal tax requirements for an LLC. While LLCs offer some flexibility in how they are taxed, they are still required to file tax returns and pay any applicable taxes. This can include state income tax, federal income tax, and potentially other taxes based on the nature of the business.
In addition to the recurring costs of maintaining an LLC, business owners should also consider the potential costs of legal fees and other professional services that may be needed throughout the life of the entity. This could include the cost of drafting operating agreements, resolving disputes among members, or seeking legal advice on compliance issues.
While the costs of maintaining an LLC in Colorado can add up, it is important to consider the benefits of operating under this type of entity structure. The liability protection afforded to LLC members can provide peace of mind and protect personal assets from business debts and lawsuits. Additionally, the pass-through taxation structure of an LLC can offer tax advantages for business owners.
Ultimately, the decision to form and maintain an LLC in Colorado should be made with a full understanding of the costs and responsibilities involved. By weighing the financial commitment against the benefits of forming an LLC, business owners can make an informed decision that supports the success and growth of their company.
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.