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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 | $299 + 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
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.
When it comes to maintaining a Limited Liability Company (LLC) in Colorado, there are various costs to consider. The LLC is one of the most popular business structures as it provides flexibility in management and distribution of profits among members while protecting the owners’ personal assets. However, to retain the benefits of this business structure, LLC owners must ensure they fulfill their obligations as required by law.
One of the primary costs involved in maintaining an LLC in Colorado is the business registration fee. Under the Colorado Secretary of State, all LLCs are required to file Articles of Organization, which attracts a state fee that varies depending on Membership size. Particularly for smaller LLCs, this cost can be less expensive compared to most businesses, with fees as low as $50.
In addition to the registration fees, LLC owners in Colorado must file an annual report each year to acquire the legal right to conduct business. Annual report filing fees are dependent uniquely on this size of a company; larger LLCs file state returns based on company earnings. Delays in filing LLC annual reports can attract late fees for owners, so filing dates need to be noted and respected to avoid additional fees or even losing corporate status.
Another cost associated with maintaining LLC is appointing a registered agent. A registered agent is an individual authorized or certified corporation or firm receiving legal documents from courts, shareholders and state agencies on behalf of LLC members. Instead of contracting registered agents separately or renting office space to establish a physical location, one of the LLC member’s hired overage to act as their registered agent to cut costs.
Come tax time, LLC’s enjoy corporation taxes regarding state income rates since entity-level taxation doesn’t exist. Instead, LLC members file individual tax returns; their management allows receiving percentage of profits without having taxed as a corporate income. This pass-through taxation is yet another benefit of having an LLC but also entails compliance costs.
In certain specific cases, LLC’s conduct business in Colorado may require specialized licenses such as attorney licenses, liquor licenses or contractor Licenses. Costs to acquire these licenses vary from license, and LLC members will need to arrange financing costs if they don’t have capital to meet them. Again it’s paramount to take note of the licensing amounts and settlement deadlines to avoid outstanding taxes that attract penalties.
Apart from license filings and competition needs, a Colorado LLC may need legal, corporate, or tax consultation services and perhaps mitigating violations when doing businesses in and sometimes, I just recommend maintaining with or benefiting from expertise throughout its due management.
Overall, the cost of maintaining an LLC should not make ruling in changing structures documents illegal. Once documents are set-up and operating guidelines adhered to & obligations met LLC with passionate ability, owners can benefit building communal aspects limited liability company with the expert processes to govern change.
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.
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.
