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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.
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 |
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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 in Colorado involves certain costs and requirements that business owners need to be aware of. While the initial formation of an LLC in Colorado may be relatively simple and inexpensive, there are ongoing obligations and fees that business owners need to be prepared for.
One of the primary costs of maintaining an LLC in Colorado is the annual filing fee. In order to keep your LLC in good standing with the state, you will need to file an annual report and pay a fee to the Colorado Secretary of State. This fee varies depending on the type of LLC you have and can range from a few hundred dollars to several hundred dollars.
Additionally, Colorado requires LLCs to designate a registered agent who is responsible for receiving official correspondence on behalf of the company. While business owners can act as their own registered agent, many choose to hire a professional registered agent service. This service usually comes with an additional fee that ranges from around $50 to $300 per year.
Furthermore, depending on the nature of your business, you may also need to obtain certain licenses and permits in Colorado. These fees can vary widely depending on your industry and location, so it’s important to research what licenses you may need and budget accordingly.
Another potential cost to consider when maintaining an LLC in Colorado is the cost of hiring professionals such as accountants or attorneys to help you with tax filings, legal compliance, and other important matters. While these services are not required, they can be a valuable investment to ensure that your business stays in good standing and compliant with state regulations.
In sum, maintaining an LLC in Colorado involves several costs that business owners need to be prepared for. From annual filing fees to registered agent services to professional assistance, these costs can add up quickly for entrepreneurs. It’s important to budget for these expenses and plan accordingly to avoid any surprises down the road.
Ultimately, while the costs of maintaining an LLC in Colorado may seem daunting, the benefits of operating under this legal structure often outweigh the expenses. LLCs offer liability protection, tax flexibility, and operational freedom that can help businesses thrive and grow. By understanding the costs involved and budgeting appropriately, business owners can ensure that their LLC remains in good standing and continues to operate successfully in the state of Colorado.
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.