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The objective of the annual report is threefold. The annual report keeps the Government informed about all updates, communicates any modifications or changes, & keeps the LLC members informed about the necessary taxes and costs. This article has all the information about the Colorado LLC annual report filing in Colorado.
An annual report can be called an address book, as it features all the relevant addresses of the company & the members. This annual report is a comprehensive record of the company’s activities for the entire year. It is also referred to as the Annual Franchise Tax Report, as it facilitates the filing of the franchise tax.
Content of the Annual Report
Typically, the annual report filed by a Colorado LLC (or any other business entity for that matter) will include all the information related to its business & members. The standard contents of the annual report or the annual franchise tax report are
- Office Address of the LLC
- Names & Addresses of the Members & managers.
- Identification Documents
- Social Security numbers of the key members of the LLC
- The objective of the business of the LLC
- List of all the signatories of the LLC
- Information of the registered agent, if any
LLC Tax Update: Before you file your LLC annual report in Colorado, make sure to pay all the tax dues for the year.
Colorado LLC Annual Report
Unlike all other states, LLCs in Colorado are required to file a “Periodic Report,” which is considered an Annual Report. The Periodic Report enables the Secretary of State to monitor changes in the company’s addresses or the appointment of members. A Periodic Report is an essential document for all types of business entities, including Corporations, LLCs, & Non-profit Organizations. These business entities that file the Periodic Reports are referred to as the reporting entities. Note that the LLC Annual Report is not the same as the Certificate of Good Standing in Colorado.
Does the State of Colorado Require an Annual Report Filing?
The State of Colorado does not have any Initial Report Requirements. But, it is mandatory to file the (annual) Periodic Report with the Colorado Secretary of State. Although a Limited Liability Company is not required to file an Annual Report with the Colorado Secretary of State, the Periodic Reports are as important as an Annual or Biennial Report filed in any other state.
All legal entities, such as C Corporations, Limited Partnerships, and Limited Liability Companies, are required to file a Periodic Report, which serves as an Annual Report for the business entity.
How to file a Colorado LLC Annual report
The Colorado LLC Periodic Report can be filed online, in person, or by mail. The Annual Report or Statement of Information, as referred to in Colorado, must be filed every year by the last day of its anniversary month. In Colorado, annual reports can be filed with the Secretary of State online by following a few simple steps.
- Step 1: Visit the Colorado Secretary of State website & click on the tab titled Business, Trademarks & Trade Names under Programs & Services Section.
- Step 2: Once you open the Business, Trademarks & Trade Names tab, you will be directed to the page called Business Organizations. Under that title, you will see ‘Search & File.’ Please select the Forms List option in that segment.
- Step 3: Upon clicking on the Forms list, you will see the following page. Click on the Periodic Report link to proceed with the report filing.
- Step 4: When you click on the Periodic Report link, you will be directed to the relevant section on the same page. You will see a heading labeled ‘General Business Filing’. In the table of general Business Filing, the first option will be a Periodic Report. Click on Search for your record to file online.
- Step 5: Enter your LLC name, or if you know the ID number, the ID number of your LLC, in the search box & click Search. Upon opening the list of businesses, click on your ID number, which is written beside your Business name & click ‘Confirm’ to continue with the filing.
Filing Colorado LLC Biennial Report By Mail
There is no offline filing of the Annual Report available in Colorado. LLCs have to file their Annual Report through the online method only.
Colorado LLC Annual Report (Domestic & Foreign)
| State Office: | Colorado Secretary of State, 1700 Broadway, Ste 200, Denver, CO 80290 Links to Website |
| Due Date: | Every year, by the last date of the Anniversary Month. |
| Filing Fee: | The filing fee for the Colorado LLC’s Periodic Report (Online, in person, or by mail) is $10. |
| Penalty: | The Colorado Secretary of State charges a minimum $40 penalty for a report that is filed late. If the LLC doesn’t file the Periodic Report for three consecutive months, then the LLC shall be considered delinquent & the filing fee for such LLC shall be $100. |
| Filing Method: | An LLC can file the report online, in person, or by Mail |
| Forms: | The form to file the Statement of Information can be found on the Colorado SOS |
| Important Information: | Once a Domestic or Foreign Colorado Limited Liability Company submits the Statement of Information or the Biennial Report along with the prescribed fees to the Colorado Secretary of State, the filing is said to be complete. |
Annual Report (Periodic Report) Deadline
The Statement of Information must be filed by the last day of its anniversary month each year. In case you don’t remember the exact formation date of your LLC, for calculating the anniversary month, you can find it on the Colorado Business Database, and then you can calculate the anniversary date of the LLC.
Penalties for Non-filing or late filing
A Periodic Report is as important as the Annual Report filed in any other state. A Periodic Report must be filed with the Secretary of State in Colorado for every entity. This filing is so important that penalties may be incurred for failure to file the report. The non-filing penalty or late filing penalties for the Annual Report, charged by the Secretary of State, are $40. If the LLC is under a non-filing status for three consecutive months, that LLC will be put into a delinquent status & the Periodic Report Filing will then be charged with the fees of $100.
Tax Structure in Colorado LLC
For an LLC in Colorado, the tax structure is very simple and flexible. First of all, every LLC has the advantage of a pass-through taxation. On the other hand, an LLC can choose the desired tax structure at the time of formation. There are two ways an LLC can be taxed,
Default Status:
When filing your LLC in Colorado, entrepreneurs have the opportunity to select a desirable tax structure. If they do not choose a specific structure, the LLC will be taxed under the ‘Default Status’. That means the tax will be levied based on the number of LLC members.
For a single-member LLC, it is considered a ‘disregarded entity’. This means that a single-member LLC does not have to file a federal income tax return, but the individual (or the LLC member) must file it personally. In the case of a single-member LLC, it is treated as a sole proprietorship.
In the case of a multi-member LLC, it is considered a partnership for tax purposes. Hence, the default status for a multi-member LLC is a partnership firm. LLCs are required to file a separate ‘partnership form’ with the IRS.
LLCs with Spouses: There are specific states (like California) where starting an LLC with a spouse is considered a single-member LLC instead of a partnership or multi-member LLC. In such cases, both husband and wife will be liable to pay taxes
Elective Status:
For an elective status, the LLC can choose the tax structure while filing the formation documents. LLCs in Colorado should file a separate tax form if they do not wish to be taxed by default. Many LLCs choose to be taxed as a corporation to enjoy corporate benefits, especially if the LLC is large.
LLCs can choose between S-Corp and C-Corp tax status when filing the formation document in Colorado. In that case, the concerned LLC needs to submit a separate form for each type it chooses. For the S-Corp type, Form 2553 must be submitted; for the C-Corp type, Form 8832 must be submitted.
In Colorado, there may be local taxes (inquire with the local government body for details) that LLCs must pay to be updated. Make sure to pay and update your tax dues before you file your annual report in Colorado.
Annual Report vs Certificate of Good Standing in Colorado
The Certificate of Good Standing is a legal document that certifies that an LLC in Colorado is in good standing and compliant with all applicable laws. That includes an updated annual report as well. While Annual Reports show if your company is up to date.
They are both similar documents (although not identical) and serve as proof of the company’s good standing. The Annual Report is a domestic document, whereas the Certificate of Good Standing in Colorado is a mandatory document if the LLC is going beyond the home state to a foreign state. There are several ways to obtain a Certificate of Good Standing in the state of Colorado.
In Colorado, a Certificate of Good Standing can be obtained by submitting an online request. LLCs can search their LLC by entering the business name, trade name, or trademark using Business Entities Records. Once you have obtained your company details, click on the Certificate of Good Standing to request one.
A filing fee of $15 must be paid to the SOS to obtain the Certificate of Good Standing. The amount might be more depending on the number of copies you request. If you request additional copies of documents, you may incur an additional fee.
Request Certificate of Good Standing:
- Online application: Search for the business in Business Entities Records
- Offline application: Not available
- Fees: $15
Why Do LLCs Have to File the Annual Report?
Some states are not required to file this yearly report, commonly referred to as the Annual Report. However, there are several reasons why states require an LLC Annual Report. Here are some reasons,
To Maintain the Accuracy of the Information
An annual report filed by the LLC has all the updated information about its official addresses & the names or addresses of all its officials. This updated information enables state authorities to track down any LLC when communicating.
To provide the Correct Correspondence
Often, creditors or other entities willing to transact with the LLC require the correct correspondence address. If this information (which can only be modified with the help of an annual report) is not updated annually, such entities will be unable to communicate with them.
To Notify the Government About All the Significant Changes
If you have changed your main business address or had new business appointments of managers or members, the annual public information report notifies the State Government Entities about it. So, the next time someone questions a newer reform that you have introduced in your LLC, you will be saved because you had submitted the information to the Government.
To Provide an Activity Log of an LLC
The Annual report is like an activity log of the LLC. It brings on record all the transactions, new associations, appointments, etc. & keeps those records intact for all future references.
To Help You With the One-time Filing of Taxes
The annual report is an excellent means to keep you on your toes in case of your dues payment. Every LLC must pay taxes through the annual report filing. By filing the report on time, the LLC can manage the exemptions & can avoid penalties imposed by the Government.
To Enable the State to Track the Payments
The government authorities use all the information filed through the annual report for tracking the payment of State Taxes.
Seek the Help of a Registered Agent
Every State will have a different rule for filing the Annual Report. Usually, it is submitted annually, but in some states, it is submitted every other year. Some states require the filing of the report only once in ten years.
Not only the timing, but also the mode of filing, proper addresses, exemptions, legality, annual report compliance, etc., must be taken care of when paying taxes or filing reports with state authorities. In many such scenarios, it is advised that an LLC appoints a Registered Agent to manage all this. Check out the best LLC service that offers all the services at an affordable price. An experienced agent is required for:
- Streamlining the mandatory processes & filing.
- Sending or receiving any documents.
- Reminding you of important tax filing and payment dates.
- Simplifying the filing procedures.
- Avoid any penalties.
- Flexibility in working.
- Maintaining Privacy (as it keeps your personal records off the public record)
You can read more about a Colorado Registered Agent here.
FAQs
Yes, an annual report is essential for every business entity in most states. Some states also require filing biennial or decennial reports.
A Yearly Business Report, or the annual report, typically incorporates the address of the business, names & addresses of the members, a list of all signatories, SSNs of the members, & details of the registered agent.
A Registered Agent is well-aware of all the filing requirements, annual report filing fee, & overall Annual Report compliance. The knowledge & proficiency of the registered agent allow the smooth filing of reports & other fees.
The most important thing for filing an Annual Report is record-keeping. Ensure that you document every transaction thoroughly.
Yes, the fees may vary depending on the type of entity or the type of legal entity you are representing.
In Conclusion
In conclusion, we can see that the annual report, also known as the Franchise Tax Public Information Report, is significantly easier to file. However, it is mandatory to file the report on time to avoid any penalties. If you are running an LLC in the state of Colorado, you have to comply with the filing of certain important documents, including the annual report or the Franchise Tax Public Information Report, as it is named in the state of Colorado.
It is also important to note that once this Public Information Report is filed with the Comptroller of Public Accounts, there is no need for additional filing with the Secretary of State. Additionally, please note that an annual report is not the same as a Certificate of Good Standing in Colorado. They might look similar, as many parts of the certificate are the same as those in the annual report; however, it is a completely different document and should be compliant with the filing requirements for the annual report in Colorado.