How Much Is an LLC in Colorado? Filing Fees, Reports, and Taxes

Starting an LLC in Colorado costs $50 to file, and then $25 a year to keep it in good standing. Those are the only fees the state actually requires. Everything else — a registered agent service, a trade name, faster processing, legal help — is optional and depends on how you want to run the business.

The $50 Formation Fee

Your LLC officially exists once you file Articles of Organization with the Colorado Secretary of State and pay the $50 filing fee.1Colorado Secretary of State. Business Organizations Fee Schedule The filing is online only; Colorado doesn’t accept a paper version of this form. Standard processing takes a few business days.

If you need the LLC on the books sooner, expedited processing costs an additional $150 and moves your filing to within three business days of receipt.1Colorado Secretary of State. Business Organizations Fee Schedule There’s no cheaper rush tier.

The $25 Annual Periodic Report

Every Colorado LLC files a Periodic Report once a year to confirm its address, registered agent, and principal office information. The fee is $25.1Colorado Secretary of State. Business Organizations Fee Schedule File it on time and that’s the whole annual cost from the state.

Miss the window and the state adds a $50 late penalty on top of the $25 report fee.1Colorado Secretary of State. Business Organizations Fee Schedule Keep ignoring it and your LLC drops into delinquent status, which costs you good standing and, after 400 days, releases your business name for anyone else to claim.2Colorado Secretary of State. Business FAQs – Delinquency Curing a delinquency later takes more paperwork than just paying the fee, so the $25 report is worth putting on the calendar.

Registered Agent: Free or Up to $400 a Year

Colorado requires every LLC to list a registered agent with a physical Colorado street address who is available during normal business hours to accept legal documents.3Colorado Secretary of State. Registered Agent FAQs If you let that lapse, your LLC can be pushed into delinquent status.

You can serve as your own registered agent for free if you have a Colorado street address and can reliably be there during business hours. The catch is that your address becomes part of the public record, and you have to actually be present to accept service of process.

Professional registered agent services generally run from roughly $35 to $400 a year, depending on what’s bundled in. Basic plans forward documents; pricier ones add compliance reminders, mail scanning, and a commercial address that keeps your home off the public record. If you ever need to change agents, filing the update with the Secretary of State costs $10.1Colorado Secretary of State. Business Organizations Fee Schedule

Situational State Fees

A handful of other state fees come up only if a specific situation applies to you:

The EIN Is Free

Most LLCs need a federal Employer Identification Number, and single-member LLCs that don’t technically need one often get one anyway to open a business bank account.5Internal Revenue Service. Employer Identification Number Applying through the IRS website is free and takes about 15 minutes.6Internal Revenue Service. Get an Employer Identification Number Third-party services charge for essentially filling out that same form on your behalf.

Ongoing Taxes Usually Cost More Than the Filing Fees

Once your LLC is up and running, taxes will almost certainly exceed everything you’ve paid the Secretary of State.

By default, the IRS treats a single-member LLC as a disregarded entity and a multi-member LLC as a partnership, so the LLC itself doesn’t pay federal income tax. Profits flow through to the members, who report them on their personal returns.7Internal Revenue Service. Limited Liability Company (LLC) You can elect corporate tax treatment with Form 8832, though most small LLCs stick with the default.

Members who actively work in the business also owe self-employment tax of 15.3% on their share of profits, covering both Social Security and Medicare.8Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes) This surprises a lot of first-time owners because you’re covering both the employer and employee halves yourself.

At the state level, Colorado applies a flat income tax rate of 4.4% (as of tax year 2025) to pass-through profits.9Colorado Department of Revenue. Individual Income Tax Guide The rate has moved around in recent years, so verify the current figure when you file. Depending on what you do, you may also owe Colorado sales tax, use tax, or employment taxes if you hire.

Optional Costs Worth Budgeting For

None of these are required, but many owners spend on at least one.

Formation services like LegalZoom, ZenBusiness, or Northwest Registered Agent typically charge $0 to $300 on top of the state’s $50 fee, often bundling the first year of registered agent service. Whether that’s worth it depends on how comfortable you are with the Secretary of State’s online portal, which is reasonably straightforward.

An operating agreement sets out ownership shares, voting rights, profit splits, and what happens when a member leaves. Colorado doesn’t require you to file one, but having one strengthens the liability protection the LLC provides. Free templates exist; a customized agreement from a small business attorney typically runs $300 to $500.

Business licenses and permits vary a lot by industry and location. A home-based consultant may need nothing beyond the LLC itself, while a Denver restaurant can easily spend over $1,000 on health permits, a liquor license, and a city business license combined. Your city or county clerk’s office is the right place to confirm what applies.

General liability insurance generally costs around $500 to $2,000 per year for small businesses, though a solo home-based consultant might pay closer to $30 to $40 a month. Insurance isn’t a state requirement to form the LLC, but operating without it means one lawsuit can undo the protection you set up the LLC to get.