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Start Your Colorado LLC

Starting an LLC in Colorado is a smart choice for entrepreneurs who want legal protection and the freedom to run their business their way. Known for its strong small business community and supportive startup culture, Colorado offers an ideal environment for new companies to grow. Forming a Colorado LLC gives you flexibility, credibility, and limited liability protection. With Tailor Brands, you can set up your LLC online quickly and easily, so you can focus on building your business in the Centennial State.

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Home » LLC Formation » Colorado LLC

If you’re thinking of forming an LLC in Colorado, it’s a smart move. It is one of the easiest ways to legally structure your business, gain liability protection, and build credibility with customers and partners. Whether you’re opening a business in Denver, Boulder, or anywhere in the state, Colorado offers a fast and affordable online LLC registration process. Tailor Brands simplifies every step, so you can form your LLC hustle free and focus on growing your business.

How to form an LLC in Colorado

The entire process of registering an LLC in Colorado is handled online through the Secretary of State’s website, and the state has one of the lowest filing fees in the country. These are the steps you will need to follow:

  1. Name your Colorado LLC
  2. Choose a registered agent
  3. File articles of organization
  4. Create an operating agreement
  5. Apply for an EIN
  6. Comply with state and local licensing

Below, you’ll find a detailed explanation to walk you through each step.

Step 1: Choose a name for your LLC

Your LLC name must be unique and clearly distinguishable from existing business names registered in Colorado. It must also include a proper LLC designator like “Limited Liability Company,” “LLC,” or “L.L.C.” You can do a Colorado business entity search using the Secretary of State’s online business name search tool.

Step 2: Appoint a registered agent

All LLCs in the state must have a Colorado registered agent with a physical address in the state. This person or company is responsible for receiving legal documents and government notices on behalf of your LLC.

You can serve as your own registered agent, but many business owners prefer using a professional service to ensure compliance and privacy. Tailor Brands offers registered agent services as part of your LLC formation.

Step 3: File articles of organization

To officially form your LLC, you must file Articles of Organization with the Colorado Secretary of State. This filing includes basic details about your business, such as its name, address, registered agent, and whether it will be managed by members or managers.

Filing is done online only, and requires paying a $50 filing fee.

Step 4: Create an operating agreement (optional)

Although not required by state law, a Colorado LLC operating agreement is strongly recommended, especially if it has multiple members. This document outlines how your LLC is managed, how profits and losses are divided, and what happens if a member leaves the business.

Tailor Brands provides a customizable operating agreement you can use to get started as part of the LLC formation service.

Step 5: Get an EIN

An EIN is a federal tax ID issued by the IRS. It’s required if your LLC has employees, multiple members, or if you plan to open a business bank account. You can get one for free through the IRS, or apply for an EIN with us during your formation process.

Step 5: Apply for business licenses and permits

Colorado does not issue or require a general statewide business license, but depending on your industry and location, you may need to register for professional licenses, sales tax permits, or local business licenses. Be sure to check with your city or county to find out what’s required. You can also check our licenses and permits service if you need help.

Costs and Compliance Requirements for LLCs in Colorado

Forming and maintaining an LLC in Colorado is relatively affordable compared to many other states. Below is a breakdown of common one-time and ongoing costs (see full detailed review of the cost of LLC in Colorado here):

ItemCostFrequency
Articles of Organization$50One-time
Registered Agent (if using a service)Varies (usually $100–$150/year)Annual (if applicable)
Periodic Report$10Annual
Business Licenses/PermitsVaries by city and industryVaries

Here are the key compliance requirements and things to know about starting a Colorado LLC:

  • Periodic Report: Each year, Colorado LLCs must file a Periodic Report with the Secretary of State. The filing window opens three months before your LLC’s formation anniversary and closes two months after. The fee is $10 and the report must be submitted online.
  • No state-level franchise tax: Colorado does not charge an annual franchise or privilege tax for LLCs, which helps reduce ongoing costs compared to many other states.
  • Licensing and tax registration: While Colorado does not require a statewide business license, many cities and counties do. Additionally, your business may need to register with the Colorado Department of Revenue for sales tax, use tax, or withholding tax depending on the nature of your operations.

Staying on top of these requirements ensures your LLC remains in good standing. Tailor Brands can help you track deadlines and manage compliance as your business grows.

FAQ

What are the steps to form an LLC in Colorado?

1. Name your LLC in accordance with Colorado’s naming requirements
2. Choose and appoint a registered agent in Colorado for your LLC
3. File the Articles of Organization with Colorado’s Secretary of State
4. Create an operating agreement
5. Apply for an EIN
6. Research and comply with Colorado’s tax requirements

How much does it cost to start an LLC in Colorado?

The filing fee for the Articles of Organization is $50. You may also need to pay for a local business licenses depending on your city or industry.

Do I need a registered agent for my Colorado LLC?

Yes. Colorado requires every LLC to have a registered agent with a physical address in the state. This person or company receives legal and government documents on your behalf.

Does Colorado require annual reports for LLCs?

Yes. The state requires LLCs to file a Colorado annual report called the Periodic Report each year. The report is due during a three-month window around your formation anniversary and costs $10.

Do I need an operating agreement for a Colorado LLC?

It’s not legally required, but it’s highly recommended—especially for multi-member LLCs. It helps clarify how your business will be managed and can protect your limited liability status.

Do I need a business license in Colorado?

Colorado does not have a general state business license, but many cities and counties require local licenses. You may also need additional permits depending on your business activity.

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Form an LLC in Colorado, Hassle-Free

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