How Much Does an LLC Cost in Colorado?

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Starting a new limited liability company (LLC) requires paying several fees and expenses. The process isn’t as expensive or difficult as many new business owners fear, though. Here’s how much it costs to start an LLC in Colorado.

The total cost of starting and running an LLC depends on your state, and on how much you do yourself. Some state fees are unavoidable, but Colorado is one of the more affordable states to have an LLC in.

Many steps can be done yourself, so long as you’re willing to wade through the forms, filings and process. Alternatively, you can hire a service to do some or all of the steps that are required.

Consider using an LLC formation service if you want a streamlined process that’s still affordable. The all-in-one approach is often more cost-effective than having a service do each step piecemeal, and it can save you a lot of time which can instead be spent on growing your new business.

Whether you choose to DIY or use an LLC formation service, here’s a breakdown of the LLC Colorado costs that you may incur. You can use this to budget for the formation process.

General Steps and Costs When Forming a Colorado LLC

There are a few general steps that are required or recommended when starting a new Colorado LLC

The good news is that Colorado’s one of the more affordable states in which to form an LLC, and there are ways to keep many steps’ costs low if you need to. It’s sometimes easier and faster to pay a small additional fee for an LLC formation service, though. That decision will depend on your budget, your time, and where your personal efforts are best spent.

Naming Your Colorado LLC

Your LLC will need a name that’s “distinguishable” from all other business names currently used in Colorado. You can check existing business names through the Colorado Secretary of State’s Business Database Search. There’s also an official explanation of what makes a name distinguishable, and some other regulations that all Colorado business names must follow.

You can secure your LLC’s name without any costs. There’s no fee for using the Business Database Search. You can then register your LLC name when filing Articles of Organization, and there’s no naming-specific fee if registering an LLC name this way.

Should you want to reserve your name or secure a DBA, however, there are some small fees for these two options:

Name Reservation: A name reservation allows you to secure an LLC name before filing Articles of Organization. The Reservation of Name costs $25 when filing online, and paper filing isn’t an option.
Trade Name: A trade name (commonly called DBA) allows your LLC to operate under a different business name. Filing a Trade Name Statement costs $20 when filing online, and paper filing isn’t an option.

Estimated Costs for Naming Your Colorado LLC: $0 – $45

Filing Articles of Organization

Your LLC is officially formed when you file Articles of Organization. This is when you give the state your LLC’s information, and it’s a required step with the highest unavoidable fee. Even if you use a free or low-cost LLC formation service, you’ll still need to pay the state’s LLC filing fee.

The LLC filing fee in Colorado is $50 when filing online, and paper filing isn’t an option. Again, this state fee is the one unavoidable expense when filing a new LLC. It’s much more affordable than many other states’ LLC filing fees, which can be in the hundreds.

(if registering an LLC that’s primarily based in another state, you’ll have to file a Foreign Entity Authority Statement instead of Articles of Organization. The Foreign Entity Authority Statement has a fee of $100.)

Estimated Cost for Filing Articles of Organization: $50.

Appointing a registered agent

Every Colorado LLC must have a registered agent physically located within the state. The agent is responsible for receiving official mailings, including from the state and if someone sues.

You can appoint yourself as registered agent so long as you’re in Colorado, and many business owners do. You may instead hire a service to be the registered agent of your LLC. Some reasons why business owners use registered agent services are for privacy, for efficiency, or because they’re out of state.

Serving as your own registered agent is free. Fees for registered agent services vary, but many are between $200 and $400. There’s no state fee for appointing a registered agent, which is done when filing Articles of Organization. (There’s a $10 fee if you change your registered agent.)

Estimated Cost for a Registered Agent: $0 – $400.

Creating an operating agreement

An Operating Agreement is strongly recommended, even if not actually required in Colorado. This is a legal document that outlines the ownership structure, membership roles, distributions, dissolution process (if ever needed), and other significant matters.

If running a solo-member LLC where you’re the only owner, writing an Operating Agreement will force you to think through important details and potential scenarios. If running a multi-member LLC with other stakeholders, this may help mitigate potential disputes.

You can write up your own Operating Agreement, but it’s strongly recommended that you consider getting assistance with this step. You don’t want to make a mistake on such an important legal document. Online Operating Agreement services or a business attorney can help. The document doesn’t get filed with the state.

Estimated Costs for an Operating Agreement: $0 – $1,000+

Expedited Service for State Filings

Expedited Service is an additional $150 per paper filing. It guarantees processing within 3 business days of when the paper filing is received. Standard processing usually takes 1 -2 weeks.

Expedited Service isn’t needed or available for online filing. Online filings are processed faster, so quicker speed isn’t necessary.

Because Expedited Service is so costly and paid for each filing, you’ll save a lot by filing online or planning ahead. Most business owners don’t need expedited processing when starting an LLC.

Other Annual and Additional Colorado LLC Costs

The above fees are the main ones that need to be paid when initially establishing your Colorado LLC. In addition to these, there are some annual costs and miscellaneous other expenses to consider.

Business licenses & permits

Your business may be subject to various state or local license or permit fees.

Assuming your LLC will be selling taxable goods or services, you’ll need to obtain a Sales Tax License (commonly called a seller’s permit). The license is obtained from the Colorado Department of Revenue (not the Colorado Secretary of State), and your application can be submitted online or by mail. Online filings are made through MyBizColorado.

The Sales Tax License fee structure varies depending on the license start date. They’re low enough, however, that you probably don’t need to plan your LLC start date around these fees. They are structured as follows:

Businesses operating in certain industries may need additional state licenses. This is standard within the childcare, automotive and liquor industries, as well as other ones. The cost of such licenses often is a few hundred dollars, but can be $1,000+. A state liquor license is $1,100, for example.

Depending on where in the state your LLC is located and operates, it might be subject to other local license or permit fees:

Local Licenses: Local licenses usually allow you to provide specific services within a jurisdiction. These may be one-time or annual fees. Think of a commercial driver’s license that allows someone to operate trucks, for instance.
Local Permits: Local permits are usually specific to a particular project, and may have to be paid each time you have a similar project. These are especially common in construction, but can be in other industries too. A truck driver might need a permit for a particular oversized load, for instance.

Check with your city/town clerk and county clerk to see whether your business needs any local licenses or permits. These are usually affordable, often ranging between $0 – $100. Select ones can be expensive, though. A local liquor license might be $1,000, in addition to the state license fee.

(Certain industries can also have federal license fees, but this is uncommon and only for very specific industries.)

Estimated Costs for Licenses and Permits: $4 – $1,000+

Annual Report

All businesses in Colorado are required to file a Periodic Report (commonly called an Annual Report). This is a simple document that confirms your LLC’s name, registered agent, and some other basic information.

The report is due within 2 months of your LLC’s anniversary. If your LLC was started on April 13, you could file a Periodic Report anywhere between February 1 and June 30.

The fee for filing a Periodic Report is $25, which increases to $50 should you file after the required window. The report can only be filed online, through the Businesses section of the Colorado Secretary of State’s website.

(There is no LLC franchise tax in Colorado.)

Estimated Annual Cost for a Periodic Report: $25

Trade Name

If your business uses a Trade Name (DBA), this requires paying an annual fee of $10. You can confirm the Trade Name online with the Colorado Secretary of State.

Estimated Annual Cost for a Trade Name: $0 – $10

Registered Agent

There’s no state fee for renewing your registered agent, but you might have an annual fee if you use a registered agent service. Annual rates often are between $199 and $400, but can be higher or lower. Of course, serving as your own registered agent will avoid this expense.

Estimated Annual Cost for a Registered Agent: $0 – $400

What Expenses You Can Write Off

Most of these expenses, whether paid to the state or an LLC formation service, can be written off as legitimate business expenses. Any of these expenses that are directly and only for your LLC can normally be deducted against profits.

For example, you can likely write off all of the following costs:

There are still many other business expenses that you may be able to deduct. Consult with a Certified Public Accountant for guidance as to what other business expenses can be taken as deductions.

Colorado LLC Costs Summary

LLC Colorado Costs – Formation Fees
Fee/Cost	Amount
Articles of Organization (LLC filing fee)	$50
Trade Name (DBA, optional)	$20
Business Name Reservation (optional)	$25
Sales Tax License (seller’s permit)	$4 – $16
Local Business Licenses	$0 – $1,000
Other State Licenses	$0 – $1,100
Operating Agreement Assistance (optional)	$100 – $1,000
Commercial Registered Agent Service (optional)	$199 – $400

Based on these estimates, you can expect starting your Colorado LLC to cost between $54 and $3,600. It’s easy to keep that number closer to $54 if you’re beginning a basic small business, and don’t need expensive licenses. Even using a comprehensive LLC formation service might raise the cost to only a few hundred.

LLC Colorado Costs – Annual Fees
Fee/Cost	Amount
Periodic Report (Annual report)	$25
Trade Name (DBA, optional)	$10
State Business License (seller’s permit)	$4 – $16
Local Business Licenses	$0 – $1,000
Other State Licenses	$0 – $1,100
Commercial Registered Agent Service (optional)	$199 – $400

The estimated annual cost of an LLC in Colorado is $29 – $25,00. It’s easy to keep that around $30 – 50 if you don’t need specialized licenses, or a few hundred if you need a basic license and/or use a registered agent service.

Conclusion

Filing a new LLC in Colorado doesn’t need to cost much. Consider where your time is best spent, and decide which steps you should do and whether to hire a service for any. You’ll likely find that an LLC formation service is affordable, and saves a lot of time.

Learn more about LLC in Colorado