Start Your 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.

Quick facts about forming a Colorado LLC

Filing Fee	$50 (online only)
Processing Time	Immediate to 1 business day
Annual Report Fee	$10 periodic report (annually)
Registered Agent Required	Yes, must have a physical address in Colorado
State Franchise Tax	None for LLCs
Business License	Not required statewide, but local permits may apply
Managing Authority	Colorado Secretary of State

How to start 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.

Colorado state requirements

Must have a physical address in Colorado: You must have a physical street address for your principal office within the state. This address is part of the public record. You have the option to sign up for email updates and reminders, such as when fees are due. You do this by giving an email address, or you may receive text messages by registering your mobile phone number. 

Must state who is the owner of the LLC: An LLC must have at least one member who is the owner. 

The organizer needs to be over 18: One or more people can form an LLC. The person forming the LLC must be 18 years old or older and is not required to be a member of the LLC after its formation. 

Choose your LLC management structure: There are two types of LLCs—manager-managed LLCs and member-managed LLCs. 

In a manager-managed LLC, the LLC has one or more managers who make all the business decisions. The members (owners) as a group do not manage the LLC. A manager may be a member (owner) or an outsider with no ownership. A single-member LLC may have a manager who is an outsider if the owner is not the manager. 

In a member-managed LLC, all the members (owners) participate in business decisions, which are decided by the majority if there is a dispute. 

How to file

All filing can be done online at the state’s website. The physical office is closed, and all staff work remotely. The telephone number for assistance is 303-894-2200. 

The mailing address is: 

1700 Broadway
Suite 550
Denver, CO 80290

State LLC filing fees

• The online fee to reserve a name is $25 for 180 days and $25 to renew a name reservation for another 180 days. 
• The online fee for filing articles of organization for an LLC is $50. Amendments are $25, and the dissolution of an LLC is $10. 
• An expedited business organization filing, which happens within 3 days, is an additional fee of $150. 
• A trade name statement filing is $20. The annual renewal is $5. Changes, corrections, and the withdrawal of a trade name are $10 each. 
• Trademark registration in Colorado is $30 for 5 years. Renewal of a trademark for another 5 years is $10. Changes, corrections, and the withdrawal of a trademark are $10 each. 
• Apostilles (official copies) of documents are $5 per document or $15 for expedited service. 
• Certificates of good standing are available online for free if the fees are paid and the required annual list is current. 

Fees may be paid online by credit, debit, or prepaid account cards. You cannot pay with cash or check. 

Step 4: Create an operating agreement (optional)

Although not required by state law, an operating 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 Colorado LLC 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 6: Apply for business licenses and permits

Colorado does not require a statewide general business license for LLCs, but many businesses must obtain licenses or permits based on their industry and location. Most professional and regulated occupations—such as contractors, cosmetologists, real estate agents, medical providers, electricians, and food-related businesses—must be licensed through the Colorado Department of Regulatory Agencies (DORA). If your LLC sells taxable goods or certain services, you’ll also need to register for a Sales Tax License with the Colorado Department of Revenue before collecting sales tax.

Local governments play a major role as well. Cities like Denver, Colorado Springs, Aurora, and Fort Collins require their own local business licenses or sales tax registrations depending on your activities. If your business operates from a physical location, you may need zoning approval, building permits, or a certificate of occupancy. Because licensing requirements vary widely across both industries and municipalities, it’s best to confirm with your local city or county office and check DORA’s licensing directory to ensure your Colorado LLC meets all compliance obligations.

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):

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

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.

What to do after you’ve created a Colorado LLC

We collected a few essential tips to kickstart the management of your new LLC. We know that starting an LLC in Colorado is just one of the first steps in your business journey, and the tips below will help you figure out what to do next. 

Making sure your LLC is managed correctly will go a long way toward improving your chances to enjoy the legal and tax benefits that come with having an LLC.

Open a separate business bank account

The operating agreement should state who is authorized to open bank accounts in the name of the LLC. As soon as the LLC is registered, it is highly recommended to open a separate bank account. It is prudent not to mix personal monies with LLC monies and instead open a separate bank account for all the LLC’s transactions. 

This bank account can help preserve the liability limit of the LLC’s owner(s) to the amount of money they invest in the LLC unless they agree to give a personal guarantee for some purpose, such as a bank loan. 

Understand your ongoing annual Colorado LLC fees

Colorado requires an annual periodic report to be filed online. The filing fee is $10, with a $50 penalty fee for late filing. See the full list of fees for more information. 

The annual report is due every year during the three-month window that begins on the first day of your LLC’s anniversary month.

Example:
If your LLC was formed on June 10, your filing window is June 1 through August 31 every year.

Filing after the window closes results in late fees and eventually puts the LLC at risk of administrative dissolution.

If you use our registered agent services, you should renew and pay your fees for that service each year. 

How your Colorado LLC will be taxed

Colorado LLCs are taxed based on their federal classification, which means the LLC itself typically does not pay federal or state income tax. Instead, profits pass through to the members, who report their share of income on personal federal and Colorado tax returns. Your LLC may also owe additional taxes if it sells goods, has employees, or operates in certain industries.

Income tax
Colorado imposes a flat state income tax on individuals, and most LLC members pay this tax on their share of business profits. The current rate is 4.4%, which applies to all taxable income earned from business conducted in Colorado. Members who expect to owe more than $1,000 in state income tax for the year must make quarterly estimated payments.

Sales and use tax
Colorado’s state sales tax rate is 2.9%, but local governments add their own taxes, which can raise the combined rate significantly depending on the city or county. In some areas, total sales tax can exceed 11%, and rates vary because many jurisdictions set and administer their own taxes. LLCs selling taxable goods or certain services must register with the Colorado Department of Revenue for a Sales Tax License and file sales tax returns regularly.

Self-employment tax
Members of a Colorado LLC classified as a partnership or disregarded entity are considered self-employed and must pay federal self-employment tax on their share of profits. This tax is 15.3%, which includes 12.4% for Social Security and 2.9% for Medicare. Colorado does not impose a separate state-level self-employment tax.

Payroll tax
If your LLC hires employees, you must withhold federal income tax, Social Security, and Medicare contributions and remit both the employer and employee portions of these taxes. Colorado also requires employers to withhold state income tax from employee wages at a rate of 4.4%, matching the state’s flat income tax system. Payroll withholding forms and employer instructions are available from the Colorado Department of Revenue.

Other state taxes
Colorado employers must pay Unemployment Insurance (UI) tax to support the state unemployment system. New employers begin with a standard “new employer” rate set by industry category, after which their rate adjusts annually based on payroll size, UI taxes paid, and prior unemployment claims. Additional industry-specific taxes or fees may apply depending on the nature of the LLC.

Colorado state regulations

You will need approval from local and state health departments if your business will serve food or provide accommodation. Establishments serving liquor need to contact the Department of Revenue. 

Get a sales tax exemption from the Department of Revenue if your business buys or sells wholesale goods. 

If your business is a state-regulated entity, apply for a license on the Department of Regulatory Agencies (DORA) website. 

For businesses that are utilities or transportation services, the Public Utilities Commission (PUC) is the regulatory authority. 

If your business has an environmental impact, you must follow Colorado’s Department of Health & Environment regulations. 

You will need a permit from the local fire department for a business involved with the use or sale of fireworks or explosives. 

Federal regulations

You must comply with minimum wage laws (state and federal). 

You must not violate Equal Employment Opportunity law and comply with Americans with Disabilities Act (ADA) accessibility rules. 

You may need a permit from the federal Bureau of Alcohol, Tobacco, and Firearms if your business involves using or selling alcohol, tobacco products, or firearms. 

All businesses must follow Occupational Safety and Health Administration (OSHA) regulations. 

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