Do you have an intention to launch a private business in Colorado? If you have already figured out how to start an LLC in Colorado, we bet you wonder how much it will cost. If so, you’ve come to the right place.
Below, you’ll find detailed info about the cost of forming an LLC in Colorado. You’ll learn everything you need to know to plan your startup budget in the most efficient manner and adequately schedule your upcoming business expenses.
Table of Content
The LLC registration is not free of charge. Most likely than not, you are aware of the need to pay a state fee to legalize your business in a particular jurisdiction. Yet, do you know about any other associated charges and regular payments that might occur?
All in all, there is no single fixed LLC price in Colorado. The final cost will depend on the type of LLC you choose and the additional services you might need.
So, we’ll make a breakdown of Colorado LLC costs keeping those two factors in mind. You’ll find the following fees split into the most common and optional ones to ease your further calculations:
Limited liability companies are regulated by state laws. By and large, statutory regulations are very similar across jurisdictions, with some nuances and minor discrepancies to them. Yet, formation costs can greatly vary from one state to another.
There is a list of common LLC-related expenses covering both regular payments and one-time fees most of which are state charges.
It’s the Articles of Organization or an LLC statute that formalizes your business formation and gives it a status of an independent legal entity with its own powers, rights, duties, and commitments.
Colorado is among the states featuring affordable formation fees. A Colorado LLC filing fee is $50. Notably, the state is about online filings only. It means you’ll be able to submit your LLC formation application only via the Secretary of State’s website.
There are several benefits to it:
In fact, the statute will be checked and approved once you fill in an online form and pay a filing fee.
Pay attention to the fact that under House Bill 22-1001, the Colorado LLC filing fee was reduced by $49. The bill will remain valid till June 30, 2023, ensuring the cost of LLC in Colorado at $1 only.
A registered agent is one of the law requirements you can’t skip. The main function of this role is to safeguard your company’s compliance status by receiving your legal mail, keeping an eye on your essential notifications, and timely informing you about that.
When it comes to appointing a registered agent, in Colorado, you can:
Serving your own agent or delegating the task to some of your acquaintances might save some money. Meanwhile, whether you hire an attorney or choose to designate an agent service, this will come at a cost.
However, with one of the best registered agent services in Colorado, you’ll get the following benefits:
A reporting requirement is one of the most important you need to observe after your company’s formation. By filing a state report, you update your basic company info with the state registry to prove that your business is operable and nothing has changed.
With some states having biennial and decimal reporting requirements, most jurisdictions call for informational reports to be sent on an annual basis. Colorado is among the latter. A periodic report is to be provided to the Secretary of State.
An annual LLC fee in Colorado is only $10. The report should be sent within a 5-month period, including two months before and after the month of your LLC formation. Reporting delays will entail a $50 penalty.
At some point, your venture might outgrow your domestic state and you might decide to expand your business to other states. To do that legally and lawfully, you’ll have to get a foreign qualification in each jurisdiction beyond your formation state.
Extending your entrepreneurial activity to Colorado, you should foreign qualify there. A foreign LLC filing fee in Colorado is $100. To pass registration, you should file a Statement of Foreign Entity with the Secretary of State.
Planning to establish a vet clinic, open a consulting agency, or set up a law practice in Colorado? If so, you need to form a professional LLC to adequately and eligibly maintain your future entrepreneurial activity.
To register a PLLC, you will have to pass pretty much the same formation procedure as with a common limited liability company. Yet, you should also have an appropriate license in place to verify your professional qualification accordingly.
Professions that call for licensing to run business embrace:
Hence, a professional LLC cost in Colorado comprises a $50 filing fee and a licensing fee that might vary from $20 to $500 and more. Yet, given the law that cuts down the formation fee to $1, you will only have to pay for the license till the end of June 2023.
Licensing is a complex and, at times, an intimidating issue for beginner entrepreneurs. Most entities are required to get some sort of license or permit to eligibly operate in the jurisdiction of registration.
Colorado is among the states that have no statutory requirements for a general state license, thus saving you some time and funds. At the same time, though, sales taxpayers across industries should have a sales permit in place.
Besides, most likely than not, you’ll need some sort of local license issued at the county or municipal level. To find out which type of permissive document you need, contact:
The pricing will vary by locality accordingly and might fall anywhere from $20 to a few hundred USD per registration.
By default, LLCs use pass-through taxation and are free from paying corporate income tax. Yet, should you choose to tax your LLC as a C-Corp, the entity will be exposed to this tax similar to corporations.
To understand the upcoming levies your business will be exposed to, take a look at the list of the most common Colorado LLC taxes:
Regular and obligatory state payments aside, you might face a number of fees related to some specific services. Most often, those are one-time charges you’ll have to cover only when paying for the service.
If you hit the spot with a memorable and outstanding business name that is not occupied, you can put it on hold in Colorado for a period of 120 days. Just file a Name Reservation Form with the Secretary of State and pay a $25 fee.
Note that for foreign LLCs, a name reservation fee is $40 and the reservation period is much longer. It’s 12 months.
To run your Colorado venture under a different name that is more marketable and appropriate for your current activity, you can register a so-called DBA (doing business as) or trade name with the state office.
You can register multiple trade names for a single LLC by filing the Trade Name Statement and paying a $20 registration fee for a single moniker.
Also applicable to a Colorado LLC filing fee, House Bill 22-1001 has reduced the trade name filing fee to only $1. So, till June 30, 2023, you can file nearly for free and get as many DBAs for your Colorado LLC as you need.
You might need this document to verify your LLC’s compliance and legitimacy when applying for a business loan or setting up a credit line for your company.
While most states issue this at a fixed cost payable to the Secretary of State, Colorado will provide it for free. The same is true for certified copies of LLC documents you might need.
Once you register your LLC statute with the state, any changes in it could be made only via official amendments. Thus, to change a legal address, company name, or registered agent, you need to file the Articles of Amendment in Colorado.
The document is to be submitted to the Secretary of State. Only online filing is available. Yet, it will be processed immediately after you pay a $25 filing fee.
If you’ve dissolved your LLC for some reason and want to revive it, you can file the Articles of Reinstatement with the state and pay a $100 fee.
However, if your entity was given a delinquent status due to:
you should first resolve the problems that lead to delinquency and regain good standing status for your LLC. Then, you need to file a Statement Curing Delinquency and pay a $100 processing fee to the state.
Similar to a formation process, to deactivate your Colorado LLC, you need to formalize the dissolution procedure. Colorado LLCs are dissolved by filing the Statement of Dissolution with the state via a unified online filing system. The filing fee is only $25.