How much does an LLC cost in Colorado? (details)

Forming a Colorado LLC entails more than just paying the first filing fee; it doesn't have to be extremely expensive.

We outline all up-front and continuing costs for a Colorado LLC and advise how to cut these out of the budget successfully.

How Much Does It Cost to Start an LLC in Colorado?

There is a $50 filing fee for the Articles of Organization with the Secretary of State when forming an LLC in Colorado.

This is an important step in creating your LLC's legal standing, which will allow it to function under Colorado's regulations if approved.

Apart from the LLC filing fee mentioned above, additional expenses are associated with establishing a Colorado LLC (Limited Liability Company).

Costs of Forming a Colorado LLC

Forming an LLC includes a one-time state filing fee of $50.

Ongoing fees such as a $10 Annual Report fee, as detailed below.

LLC Costs in Colorado

The filing fee for a Colorado LLC Articles of Organization is $50

In Colorado, forming an LLC requires paying the Secretary of State a $50 filing fee for the Colorado Articles of Organization. This paper creates your LLC legally if it is accepted.

After formation, you only need to pay the $50 one-time charge; after that, you won't need to pay any more monthly or yearly fees to keep your Colorado LLC active.

The form used to establish an LLC can vary by state; it may be referred to as the Articles of Organization.

In Colorado, it is specifically known as the Articles of Organization. Despite these variations in naming, they all serve the same purpose: to legally create your LLC.

Reserving a business name in Colorado entails a fee of $0

The creation of your Colorado LLC Name Reservation is completed simultaneously if you want to file online. An additional $0 filing fee is required for an online name reservation when filing online.

If you want to file by mail, remember to include the Name Reservation with your application.

But before forming your LLC, you have to wait for the Name Reservation to be approved. Even though filing by mail can save you a few bucks, it can take longer to form your LLC.

How much does a DBA cost?

A DBA (referred to as a Trade Name in Colorado) is filed online with the Colorado Secretary of State.

The filing fee for a Colorado Trade Name is $20.

Additionally, a Trade Name must be renewed annually, with a renewal fee of $5 per year.

Colorado Registered Agent Fee ($0 to $125/ annually)

Under Colorado law, every LLC formation requires the appointment of a Registered Agent.

Your Colorado Registered Agent acts as the liaison for legal documents and state notifications on behalf of your LLC, necessitating a physical address within the state and availability during regular business hours.

You can appoint yourself, a trusted associate, or a family member as your Registered Agent without incurring additional expenses.

Alternatively, hiring a Registered Agent service costs you about $125 per year. These services offer additional business support and safeguard your privacy.

Hiring a Registered Agent service is a good idea if:

• You lack a physical address in the state (Colorado law mandates Registered Agents to have an address within the state).
• You prefer to keep your address private (some companies allow you to use their address for confidentiality).

LLC Operating Agreement Fee ($0)

A Colorado LLC Operating Agreement functions as a written contract among the LLC's members. It outlines specific details regarding ownership, how the LLC is managed, and the distribution of profits.

Both Single-Member and Multi-Member LLCs should create an Operating Agreement, maintain it within their business records, and provide each member with a copy.

Online services generally charge between $50 to $200 for crafting an LLC Operating Agreement.

LLC EIN Number Fee ($0)

An EIN, also referred to as an Employer Identification Number or FEIN (Federal Employer Identification Number), is essential for handling tax filings, setting up an LLC bank account, and potentially facilitating employee hiring.

While some platforms may charge a fee, you can obtain an EIN for your LLC free of charge directly from the IRS. The process to apply online is simple and typically takes only a few minutes to complete.

Colorado LLC Annual Report Fee ($10/year)

In Colorado, the LLC Annual Report is referred to as the Periodic Report.

The state requires you to keep your LLC's information up to date by filing a Colorado Periodic Report annually.

This keeps your LLC in good standing and compliance with state law so it can continue operating. You simply confirm the information on your Periodic Report, file it with the Colorado Secretary of State, and pay the Periodic Report filing fee.

The Colorado LLC Periodic Report costs $10 annually. These costs are required each year for the duration of your LLC's existence.

Colorado Business License and Permit Fees

Colorado does not require a state general business license, so there are no associated fees or requirements. However, your business may still require an industry- or occupation-specific license from the state.

Additionally, you may need a local business license or business permit from your municipality (county, city, town, etc.).

This varies by location, but you can contact your local government to determine if there are any specific licensing requirements for your business.

LLC Taxes

Colorado LLC owners face a range of tax obligations, leading to varying annual costs.

Some of the taxes LLC owners pay include:

• Federal taxes
• State income tax
• Local income tax
• Business taxes
• Self-employment taxes
• Sales and use tax
• Payroll tax (if you have employees)
• Property tax (if the LLC owns property)

The Taxes of Your Colorado LLC taxes are affected by your industry and business activities, making it difficult to predict. Every business is different, and the taxes your LLC owes depend on your specific situation.

Hiring an Accountant

Accounting fees can vary, but in general, expect to pay about $300 a year for basic tax returns and up to $900 for more comprehensive filings.
The best person to help you determine your small business tax liability in Colorado is a certified accountant.

While accounting costs can vary, you should generally budget $300 for simple tax returns and up to $900 for more complicated filings annually.

Colorado Secretary of State

If you're curious about the expenses involved in starting a Colorado LLC, feel free to contact the Colorado Secretary of State for detailed information.

Colorado LLC Costs FAQs