How much does an LLC cost in Colorado?
($1 until June 2023)

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LLC CostThe cost to starting an LLC in Colorado has been reduced to $1. This fee reduction will remain in place until June 30, 2022.

We’ll explain this new reduction in LLC costs in Colorado as well as other costs required to keep your LLC in good standing.

How much does an LLC cost in Colorado?

Typically, it costs $50 to form an LLC in Colorado.

However, the state passed the Colorado Business Fee Relief Act (House Bill 22-1001), and this reduced the fee to start a Colorado LLC from $50 to $1.

This went into effect on July 1, 2022.

And it will remain in effect until June 30, 2023.

In order to form an LLC in Colorado, you need to file a form called the Colorado Articles of Organization (this is what you’re paying $1 for). Once your Articles of Organization is approved, your LLC officially goes into existence.

Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

(check out Northwest vs LegalZoom)

In addition to the Articles of Organization fee, there are other costs to be aware of when forming a Colorado Limited Liability Company (LLC).

Colorado LLC Secretary of State Business Organizations
(Colorado Secretary of State, Business Organizations Building)

Costs to forming a Colorado LLC

There is a $1 (one-time) fee to form an LLC.

There are also ongoing fees (like a $10 Annual Report fee), which we discuss below.

LLC Costs in Colorado

LLC RequirementsCost
Articles of Organization $50 $1
Registered Agent$0 or $125 per year
Operating AgreementFree on our website
EIN NumberFree from the IRS
Periodic Report$10 per year
TaxesVaries

Colorado LLC Articles of Organization Filing Fee ($1)

Starting an LLC in Colorado costs $1. This is the state filing fee for a document called the Colorado Articles of Organization.

The Articles of Organization are filed with the Colorado Secretary of State. And once approved, this is what creates your LLC.

The $1 fee is a one-time fee. You don’t have to pay any monthly (or annual) fees to start your Colorado LLC.

The state of Colorado doesn’t have any options to file this document by mail. You can only file the Articles of Organization online.

Note: LLCs are the most common business structure used in Colorado. They are the most popular business entity because they offer liability protection for the LLC Members (owners).

Colorado business name cost ($0)

Naming your Limited Liability Company doesn’t cost anything. The Colorado Secretary of State doesn’t require you to file a Name Reservation as part of the LLC formation process.

Your Colorado LLC Name is approved (at no extra cost) when your Articles of Organization is approved by the state.

How much does a DBA cost? ($1)

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

The fee is usually $20, but it’s been reduced to $1 until June of 2023.

A DBA (aka Trade Name) needs to be renewed every year and the cost is $5.

Tip: You aren’t required to get a DBA for your LLC. It’s optional. For more information, read our article: Do I need a DBA for my LLC?

Colorado Registered Agent Fee ($0 or $125/year)

Colorado law requires you to designate a Registered Agent when forming your LLC.

A Colorado Registered Agent is a person or company who receives legal documents and state notices for your LLC. A Registered Agent needs a street address in Colorado and should generally be available during normal business hours.

There is no additional cost ($0) if you will be your own Registered Agent, or have someone you know be your LLC’s Registered Agent.

However, you have the option of hiring a Registered Agent Service. This will cost you about $125 per year. But Registered Agent companies offer other helpful business services and can protect your privacy.

Hiring a Registered Agent Service is a good idea if:

  • You don’t have an address in the state (Colorado law requires Registered Agents to have a physical address in the state)
  • You want to keep your address off public record (depending on which company you hire, you may be able to use their address to keep your address private)

Special offer: If you hire Northwest to form your LLC ($39 + state fee), they’ll include their Registered Agent service free for the 1st year.

(Check out our Northwest Registered Agent review to learn more)

LLC Operating Agreement Fee ($0)

A Colorado LLC Operating Agreement is a written contract between the LLC Members. Operating Agreements include detailed information about LLC ownership and operating procedures. For example, how the LLC is managed, and how profits are distributed.

Single-Member LLCs and Multi-Member LLCs should draft an Operating Agreement, keep it with their business records, and give a copy to each Member.

Most websites charge $50 – $200 for LLC Operating Agreements.

Here at LLC University®, we offer free LLC Operating Agreement templates for all types of LLCs.

Download a free LLC Operating Agreement:
Member-managed: Google DocWordPDF
Manager-managed: Google DocWord

LLC EIN Number Fee ($0)

An EIN Number is also known as an Employer Identification Number (EIN) or a Federal Employer Identification Number (FEIN).

This number is used to file income taxes, to open an LLC bank account, and to hire employees (if applicable).

Although many websites charge a service fee to help you get an EIN for your LLC, it can actually be done for free.

You can obtain an EIN for your LLC from the Internal Revenue Service (IRS) at no cost. The online filing can be completed in a few minutes.

Colorado LLC Annual Report Fee ($10/year)

The name for the LLC Annual Report in Colorado is called the Periodic Report.

The state requires you to keep your LLC’s information up to date by filing a Colorado Periodic Report every year.

This keeps your LLC in good standing and in 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 per year. This fee is paid every year for the life of your LLC.

Note: Other business entities file other reports, but LLCs just file the Period Report each year.

Colorado Business Licenses and Permits Fees (varies)

Colorado doesn’t have a state general business license, so there’s no fees or requirements for this.

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

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

If your business needs to collect sales tax in Colorado, you’ll need to get a Standard Retail License (aka Sales Tax License) from the Colorado Department of Revenue.

In summary, the costs for your business license requirement (or business permits) will vary depending on location and industry, but usually the fees are not very high.

LLC Taxes (varies)

There are many different types of Colorado LLC taxes that owners must pay, so this annual cost varies widely.

Some of the taxes LLC owners pay include:

  • Federal income tax
  • 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)

Your Colorado LLC taxes depend on your industry and amount of business activity, so we’re not able to provide an estimate. Every business is different, and your specific circumstance determines what taxes apply to your LLC.

Note: By default, a Single-Member LLC is taxed like a Sole Proprietorship. And a Multi-Member LLC is taxed like a Partnership.

Hiring an Accountant

How much your small business pays in taxes is best determined by working with a qualified accountant in Colorado.

The amount you’ll pay your accountant will vary. However, most accountants will charge between $300 per year for a simpler tax return, or up to $900 for more complicated filings.

Note: We recommend speaking with a few accountants in Colorado to make sure they can help you meet all your federal, state, and local tax obligations. We offer detailed tips on How to Find an Accountant.

In summary…

The Colorado LLC fees are summarized below.

LLC Formation Cost

The total Colorado LLC formation cost is $1 until June 2023. Then it will go back to $50.

This is the amount you have to pay for the Articles of Organization.

If you pay a company to form your LLC, you will have to pay their service fee in addition to the state LLC filing fee.

LLC Ongoing Costs

Periodic Report

Your Colorado LLC must file a Periodic Report (aka Annual Report) and pay the $10 fee every year.

This fee is paid to the Colorado Secretary of State. And filing the report keeps your LLC in good standing.

Taxes

LLC owners pay several different types of taxes, like: federal income tax, state income tax, local income tax, self-employment tax, sales and use tax (if you sell products in Colorado), and payroll tax (if your LLC has employees).

That means the annual cost for your business can vary widely.

We recommend hiring an accountant familiar with Colorado business taxes. That’s the best way to make sure your LLC pays the correct taxes to the IRS, as well as to the state and local governments.

The amount you pay your accountant can vary, but most small business owners pay their accountant between $300 and $900 per year.

Registered Agent costs

Hiring a Registered Agent for your LLC in Colorado will cost you about $125 per year. Or you can be your own Registered Agent in Colorado to save money.

If you’d like to hire a Registered Agent, we recommend Northwest Registered Agent.

Colorado Secretary of State

If you have any questions about the cost of opening a Colorado LLC, you can contact the Colorado Secretary of State.

Their phone number is 303-894-2200. And their hours are Monday through Friday, from 8am to 5pm, Monday Time.

Colorado LLC Costs FAQs

It currently costs $1 for an LLC in CO. This is the fee to file the Articles of Organization (the form that creates your LLC). However, this $1 fee will eventually go back to $50 in June 2023.

Yes, there is an annual filing fee for an LLC in CO. In most states this is called the LLC Annual Report, but in Colorado they call it the LLC Periodic Report.

The Periodic Report is due every year and it costs $10.

This $10 Annual Report fee is paid to the Colorado Secretary of State. You have to pay this to keep your LLC in good standing.

No, you aren’t required to hire an attorney to form your LLC. You’re allowed to form your LLC yourself if you’d like.

However, some people may want to hire an attorney if their LLC has a complex ownership or management structure, has investors, or requires industry-specific documentation.

A business attorney usually charges between $800 and $2,500 to form a Colorado LLC.

You aren’t required to hire a professional service company to form your LLC in CO. You’re allowed to form your LLC yourself if you’d like.

However, if you want to save time and make sure your LLC is filed correctly, we recommend hiring Northwest Registered Agent.

Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

(check out Northwest vs LegalZoom)

Northwest has excellent customer service and they include Registered Agent services free for the 1st year. They also offer other services, like an Operating Agreement and filing your Annual Report.

Colorado is a very modern state with their LLC online filing. Your LLC will be approved immediately after you file it online.

For more details, please see how long it takes to get an LLC in Colorado.

A Colorado LLC is treated for state tax purposes the same way it is treated federally by the IRS.

This means if you have a Single-member LLC, you’ll have an LLC taxed as a Sole Proprietorship.

And if you have a Multi-member LLC, you’ll have an LLC taxed as a Partnership.

Alternatively, you can request that the IRS tax your LLC like a Corporation. With this, you have two options: an LLC taxed as an S-Corporation or an LLC taxed as a C-Corporation.

S-Corporation taxation can save you money on self-employment taxes. However, it only makes sense once your business has established revenue and you’re making at least $70,000 in net business income per LLC Member.

And C-Corporation taxation is rarely used by small business owners.

What do most people do? Most people leave their LLC taxed in its default status (taxed as a Sole Proprietorship or taxed as a Partnership). Then once their business makes consistent revenue and profit, some people check with their accountant to see if S-Corporation tax treatment makes sense (meaning, they make sure the extra cost of S-Corp tax setup and maintenance can justify the potential self-employment tax savings).

Here are the steps to starting an LLC in Colorado:

    1. Choose an LLC business name and make sure it’s available
    2. Choose who will be your Colorado Registered Agent
    3. File the Colorado Articles of Organization
    4. Complete and sign an LLC Operating Agreement
    5. Get a Tax ID Number (EIN) from the IRS
    6. Open an LLC business bank account
Matt Horwitz


Matt Horwitz
Founder & Educator, LLC University®
Matt Horwitz has been the leading expert on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that other companies weren't offering. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
 
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.

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