What is an Annual Report?

An annual report is a document that must be filed with the Colorado Secretary of State’s office by all LLCs in the state each year. This requirement is mandatory once you register an LLC in Colorado. Let’s look at what one includes:

• Your LLC’s official business name and primary address
• Names and personal addresses of your LLC’s members and managers
• Current contact information for your registered agent
• Your business’s purpose and industry
• LLC’s EIN number (Employer Identification Number)
• Your file or entity number assigned by the state upon formation

This may seem like mundane information, but it serves an important record-keeping function. Filing each year confirms your business details are still accurate and up-to-date in the state’s database.

It also shows your LLC remains compliant with state requirements and wishes to stay active. Failure to file could lead to your business being dissolved by the state.

Why is the annual report required?

So why does Colorado mandate this annual filing for LLCs? Several key reasons:

• Maintains updated business records. Accounts for any changes to your LLC’s structure, leadership, registered agent, etc. over the past year.
• Verifies your LLC is still active. Confirms you have not dissolved or abandoned your business. Prevents defunct LLCs from remaining registered.
• Tracks compliance. Allows the state to monitor that LLCs are following reporting requirements. Non-compliance can result in penalties or dissolution.
• Business data collection. Provides useful aggregate data about registered businesses operating in the state for analysis, planning, and policy making.

Overall, the annual report ensures the Colorado Secretary of State has current and accurate information on all LLCs registered in their state. This allows them to effectively monitor and communicate with businesses.

Annual report filing requirements in Colorado

Now that we’ve covered the purpose of the annual report, let’s look at some key requirements for completing it:

• Due date: Annual reports must be filed by the end of your LLC’s anniversary month each year. This is the same month in which your original articles of organization were filed.
• Filing fee: There is a $25 fee to submit the annual report, due upon filing each year.
• Online filing: Reports can be filed online through the Secretary of State’s website. You will need to create an account to access the online filing system.
• Paper filing: The report cannot be filed through mail or in person. It can only be done online.
• Required information: The report must include your official LLC name, primary address, names/addresses of members and managers, registered agent details, EIN, purpose, industry and state file number.
• Late fees: The Periodic Report can be filed two months prior to the Periodic Report month or two months after without any penalty. A $50 late fee applies if the report is not filed on time, after the two month grace period.

As long as you file on time each year with the required information and fee, you will meet Colorado’s annual report requirements. Now let’s look at how to actually complete the filing.

How to file an LLC annual report (periodic report) in Colorado

When your LLC’s annual report deadline rolls around, you have a few options for completing the filing. Note that the periodic report can only be filed online or through a compliance service

File the periodic report online

For quick and easy filing, most LLC owners utilize the Secretary of State’s online filing system. To do so, simply:

• Visit the Secretary of State’s website.
• If you don’t already have one, create a user account to access the business section.
• Log into your account, select your LLC, and click File Annual Report.
• Fill in your business information – this will auto-populate from prior years to update.
• Enter your credit card information to pay the $25 filing fee.
• Submit the completed report – you will receive instant email confirmation of filing.

The convenience of filing online allows you to complete this compliance requirement from your home or office in just a few minutes. 

Hire a compliance service

Some owners utilize third-party services like us to handle their annual report filings for them. For a fee, a service will track due dates, prepare your report, file it on time, and provide reminders. This can be very convenient for busy entrepreneurs who want help remembering this annual requirement.

They take care of the paperwork so you can focus on actually running your Colorado LLC.

Consequences of failing to file the annual report

Now that we’ve covered how to file your annual report, let’s discuss what happens if you fail to file – which you want to avoid.

The Periodic Report can be filed two months prior to the Periodic Report month or two months after without any penalty.

Late filing fees

If your LLC report is not submitted by two months after the due date, a $50 late filing fee is incurred.

You must also still pay the standard $25 on-time filing fee, even if filing late.

Administrative penalties

If your LLC misses 3 or more annual report deadlines in a row, the Secretary of State may:

• Impose $50 – $500 in fines per late report
• Refer your LLC to the Colorado Department of Revenue for further penalties

Multiple late reports indicate a pattern of negligence. Avoid these penalties by staying on top of filings.

Administrative dissolution

If you simply ignore the reporting requirement for too long, the Secretary of State can take action to administratively dissolve your LLC.

You would then have to go through the process of reinstating your LLC, which involves paying all back fees, as well as a $200 reinstatement fee.

Don’t let it get to the point of dissolution – stay compliant with your annual reports!

Don’t delay – file your Colorado LLC annual report

Now you know everything you need to know about completing your mandatory annual report with the Colorado Secretary of State each year as an LLC owner. Don’t look at it as a burden; see it as a chance to confirm your business is active and compliant. Set reminders, make a filing routine, and consider automating the process through a service.

Your Colorado LLC depends on you submitting this crucial report on time every year. Need any help? Reach out – we’re always happy to assist. 

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