Colorado LLC Cost
Colorado is among the most affordable states in which to form an LLC, charging just $50 to file Articles of Organization. The state also offers a very reasonable $25 fee to file its annual report. You may also need to pay for other optional business services, such as filing a DBA or hiring a professional registered agent. Our guide will explain all the potential costs of starting an LLC in Colorado, from basic formation costs to optional fees and insurance premiums.
What You'll Find In This Article:
Colorado LLC Formation Filing Fee: $50
Once you file Colorado Articles of Organization with the Secretary of State, your Colorado LLC officially exists as a legal entity. Filing in Colorado is way less burdensome than in most other states—the fee is just $50. Colorado Articles of Organization must be filed online through the Secretary of State’s website.
It costs $50 to file Colorado Articles of Organization with the Secretary of State. Some businesses may also pay extra for a registered agent, business licenses, and ongoing filings.
Yes. Colorado is one of the cheaper states to start and maintain an LLC because it has both low formation and annual report fees.
Yes. Colorado requires LLC formation documents (Articles of Organization) to be filed online through the Secretary of State website. But this also means you don’t have to hassle with physical paperwork.
Colorado Annual Report Fee: $25
All LLCs in Colorado need to file an annual report, which is referred to as the Periodic Report and has a fee of $25. Your LLC’s Periodic Report must be filed once a year during a period of time beginning two months before the month of the anniversary of your LLC’s formation and ending on the last day of the month two months later. (So an LLC formed on June 4, 2024 will need to file the Periodic Report between April 1st and August 30, beginning in 2025.)
Find out how to file your Colorado Periodic Report.
Yes. Colorado LLCs must file a Periodic Report (also known as an “annual report”) every year to keep their business in good standing with the state.
Your Colorado Periodic Report is due every year by the last day of the month your LLC was originally formed. For example, if you formed your business on July 5, your report is due by July 31 each year to avoid late fees and possible delinquency.
If you miss the deadline, your business becomes “Noncompliant,” and an additional $50 late fee is added. If the report is still not filed after about 60 days, your business becomes “Delinquent,” and you must file a Statement Curing Delinquency for a single $100 fee to restore good standing.
Colorado Registered Agent Fee
You must appoint a Colorado registered agent in your LLC’s Articles of Organization. A registered agent is the person or company you pick to accept legal notices on behalf of your business.
You can serve as your own registered agent, or name a business partner or employee to the role, but many businesses choose to hire a professional registered agent service instead. Doing so helps you keep your privacy and gives you a reliable way to receive legal notices when you’re out of the office. Registered agent service fees vary, but Northwest’s fee for registered agent service is locked in at $125 per year, and never goes up.
Yes. Every Colorado LLC must have a registered agent to receive state correspondence and legal documents, such as Service of Process.
Yes. You can act as your own registered agent if you have a physical address in Colorado, available during business hours, and meet all registered agent requirements.
A professional registered agent service in Colorado usually costs between $35 to $300 per year, depending on the company and services included.
Colorado Sales Tax License Fee: $16
Colorado issues a Sales Tax License that authorizes businesses selling tangible personal property to operate in the state and collect state sales tax. This license is required for virtually any LLC that will be making taxable sales. The Colorado Sales Tax License costs $16 and is valid for two years.
You can get your Colorado Sales Tax License online at MyBizColorado, or you can file a Colorado Sales Tax and Withholding Account Application by mail to register for a sales tax license.
Most businesses that sell, rent, or lease taxable products and services in Colorado need a sales tax license. It’s recommended that you consult a licensed business attorney for any specific licensing questions, but you can also learn more by reading the Colorado Sales and Use Tax guide.
A Colorado sales tax license costs $16 and is valid for two years. The fee is prorated depending on the quarter in which you apply because the license 2-year cycle renews at the end of every odd-numbered year.
Yes. You can apply online through the Colorado Department of Revenue online portal.
Suggested guide: How to Apply for a Colorado Sales Tax License
Colorado Professional Licensing Fees
Many careers require specialized training, including medical professionals, certified public accountants, engineers, and many more. Working in a skilled trade requires a professional license from the Colorado board that regulates the industry. Most occupations require a fee for a licensing exam as well as a fee for the license itself.
Visit the Colorado Division of Professions and Occupations for more information about professional licensing.
Local Business License Fees in Colorado
Counties and cities in Colorado require a local sales tax license in addition to the state sales tax license. The fee for these licenses vary based on location and the industry being licensed. For example, Colorado Springs charges $110 for most business licenses, but a general business license in Boulder is $25.
LLCs in regulated industries like liquor sales, contracting, electrical engineering and other specialized industries may also need to purchase a license on the local level, along with any state-issued professional licenses.
Yes, you may need a local business license, but it depends on your specific city and county, as Colorado does not issue a statewide general business license.
Local business license fees are determined by the city and county where your business operates. Since Colorado does not have a statewide general business license, fees can range from around $25 to more than $100. You can get information about the specific fee through your local city hall or or county clerk’s office (for an unincorporated county area).
Optional LLC Fees in Colorado
Alongside the mandatory expenses of starting an LLC in Colorado, you may need to pay fees for other services that apply to your business.
Name Reservation: $25
If you’re not ready to pull the trigger on starting your Colorado LLC just yet, but know what you want to name it, you have the option of reserving a business name for $25. By filing a Statement of Reservation of a Name with the Colorado Secretary of State, you can get exclusive rights to your chosen business name for 120 days.
DBA (Doing Business as) Name: $20
If you want to do business under a name other than your LLC’s legal name, you’ll need a DBA—called a “trade name” in Colorado. To get a trade name in Colorado, file a Statement of Trade Name, along with a $20 fee.
Certified Copies of Business Documents
As your business grows, you may need to order a certified copy of your business documents from the Secretary of State, such as when you’re expanding your business to a new state. The fee for a certified copy is $2, plus 25 cents per page for documents longer than 20 pages. It takes up to 10 business days for the state to process certified copies, but you can cut the state processing time in half by paying a $150 expedited service fee.
Find out how to get a certified copy of your Colorado Articles of Organization.
Colorado Certificate of Good Standing
If you need to prove to a bank, investor, or foreign jurisdiction that your LLC is up-to-date on its taxes and state reports, you’ll need a Certificate of Good Standing (also known as a Certificate of Compliance or Certificate of Existence in other states).
You can download a printable Colorado Certificate of Good Standing online through the Colorado Secretary of State’s Business Database Search for free.
Read more on how to get a Colorado Certificate of Good Standing.
Business Insurance Premiums
Any LLC with valuable assets or a risk of lawsuits should probably invest inbusiness insurance. The cost of insurance can range from $50 a month to several thousand dollars a month, depending on the size and needs of your business—but the average cost in Colorado is 86¢ per every $100 in earnings.
If your business has one or more employees, Colorado requires that you purchase workers’ compensation insurance. You can obtain worker’s compensation insurance through a private company, and if you are unable to purchase it from another provider, Pinnacol Assurance coverage is available to any Colorado employer. The price for this insurance varies, so it’s a good idea to shop around for a competitive rate. Rates also differ depending on your industry—a bookkeeping firm will have lower workers’ comp insurance rates than a manufacturing plant will.
Depending on the kind of business your LLC does, you may also consider liability insurance. Your LLC protections shield you and other LLC members from from lawsuits and bankruptcy, but won’t protect your business if a customer is injured on your premises. You may not need liability insurance if you have a home-based LLC or operate a small office in a quiet area away from the public—but retail stores, restaurants, and other businesses with a lot of public interaction should consider getting some. In fact, certain businesses are required to carry liability insurance in order to legally operate.
Learn more about LLC Business Insurance.
How much does it cost to register a foreign LLC in Colorado?
Registering a foreign LLC in Colorado costs $100. If your LLC was formed in another jurisdiction but you want to do business in Colorado, you’ll need to register as Colorado foreign LLC. To do business as a foreign LLC, you’ll need to submit a Colorado Statement of Foreign Entity Authority online—the Colorado Secretary of State also provides detailed instructions for filing this form.
You may also need a Colorado sales tax license, and likely one or more professional or local licenses as well.
A foreign LLC is a Limited Liability Company that was formed in another state (or country) but has expanded its business into Colorado. The term “foreign” simply means the company was registered outside the state of Colorado, not necessarily internationally.
