Colorado LLCs cost $50 to form and $10/year for periodic reports - one of the most affordable states in US. Periodic report due by anniversary date every year. Colorado Secretary of State processes online filings in 5-7 business days. Low cost and business-friendly environment make Colorado attractive for entrepreneurs, especially tech startups.
Colorado LLC Formation
Colorado Secretary of State processes LLC formations. $50 filing fee (very affordable).
Standard processing: 5-7 business days. 24-hour expedite: +$100. Same-day: +$500 (rarely needed).
Name Requirements
Must include "Limited Liability Company", "L.L.C.", or "LLC". Not case-sensitive.
Restricted words: Bank, Trust, Insurance, Attorney. Colorado SOS rejects 16% of names for similarity to existing businesses.
Name Availability Search
Search Colorado Business Database at sos.state.co.us. Free.
Name reservation: $25, holds 120 days. Can't extend but can re-reserve.
Formation Process
File Articles of Organization with Colorado Secretary of State. Online filing at sos.state.co.us or mail to Denver office.
Required: LLC name, registered agent with CO address, principal office address, delayed effective date (optional).
Registered Agent Requirement
Must have Colorado registered agent with physical CO address (no PO boxes). Can be individual or entity.
Can use yourself if you have CO address. Professional registered agent: $100-200/year.
Periodic Report
Due every year on ANNIVERSARY DATE of formation. $10 fee (cheapest annual filing in US).
Example: LLC formed July 15, 2024 must file periodic report by July 15, 2025.
Penalty for Late Filing
$50 late fee if filed after deadline. Administrative dissolution after extended non-filing.
Reinstatement: $100-200. Much more expensive than $10 on-time filing.
CO vs Other States
Colorado $50 + $10/year vs California $70 + $800/year: CO saves $790/year.
Colorado $50 + $10/year vs Delaware $90 + $300/year: CO saves $240/year.
Why Colorado Is Competitive
Colorado prioritizes economic development. Low fees attract entrepreneurs, especially tech startups and remote businesses.
Benefits: Fast processing, cheap annual maintenance, business-friendly regulations, strong startup ecosystem (Boulder, Denver).
Tax Considerations
Colorado income tax: 4.4% flat rate (relatively low). Pass-through taxation like all LLCs.
No state franchise tax. No gross receipts tax. Simple, predictable tax environment.
Denver/Boulder Additional Taxes
Denver businesses may need occupational privilege tax: $4/month per employee ($48/year). Most affordable city business tax in US.
Boulder has similar structure. Other CO cities have minimal or no additional business taxes.
Operating Agreement
Not required by CO law but HIGHLY RECOMMENDED for all LLCs.
Colorado courts enforce Operating Agreement terms. Worth legal review for multi-member LLCs.
Foreign LLC
Out-of-state LLCs doing business in Colorado must register as foreign LLC. $100 filing fee (higher than $50 domestic).
Periodic report still required: $10/year on anniversary date.
When Foreign Registration Required
Maintaining office in CO, employing CO workers, owning CO real estate, regularly conducting business in state.
Remote workers living in Colorado while working for out-of-state company typically don't trigger foreign registration.
Common Mistakes
Missing anniversary deadline: CO uses exact anniversary date. Set calendar reminder 30 days before to avoid $50 late fee.
Not budgeting Denver occupational privilege tax: $4/month per employee often overlooked. Small but required for Denver businesses.
Assuming Colorado has same high costs as California: CO is 95% cheaper than CA for annual maintenance. Don't overpay for unnecessary expensive state.
When CO Makes Sense
Choose Colorado LLC if: Tech startup, remote business, want low cost with good business infrastructure, operating in Mountain West, value startup ecosystem access.
Best for: SaaS companies, remote teams, bootstrapped startups, side businesses, real estate investors.
Tech Startup Ecosystem
Colorado (especially Boulder/Denver) has strong tech startup community. Low LLC costs support early-stage companies.
Many founders choose CO LLC for operating company, keep Delaware for venture capital raising later.
Remote Work Hub
Colorado popular for remote-first companies. State encourages remote work, digital nomads, location-independent businesses.
$10/year periodic report makes it affordable to maintain CO LLC even if you relocate.
Trademark Lens verifies Colorado LLC name availability before $50-75 formation costs.