Starting an LLC in Colorado requires three essentials under C.R.S. § 7-80-201: a proper name, a registered agent with a Colorado street address, and Articles of Organization filed with the Secretary of State.
The costs are reasonable, as Colorado charges $50 to review your Articles of Organization and $25 every year for required reports. The state has gone 100% digital, so everything processes quickly, with approvals typically within 24 hours.
Here are the state’s core requirements at a glance:
Colorado's online system makes LLC formation easy. You'll complete five key steps: choose a compliant name, designate a registered agent, file Articles of Organization, draft an operating agreement, and secure tax IDs and licenses.
Your name must stand apart from every other business on file and include an approved ending: "limited liability company," "ltd. liability company," "limited liability co.," "ltd. liability co.," "limited," "l.l.c.," "llc," or "ltd."
Run the free name search on the Colorado Secretary of State's business database. "No matching records" means you're good to go. If you're not ready to file yet, Colorado offers 120-day name reservations for $25.
Colorado requires someone available during business hours to accept legal documents. Your registered agent must be a Colorado adult resident or authorized business entity, have a physical street address (no P.O. boxes), and provide written consent.
You have three options:
Colorado only accepts Articles of Organization online through the Secretary of State's business filing system. You'll provide your entity name with the required suffix, principal office street address, optional mailing address, registered agent name and physical address, organizer name and address, management structure (member-managed or manager-managed), effective date, and electronic signature.
Double-check everything before submitting, as fixing mistakes costs money later. After paying the $50 filing fee, you'll get confirmation within minutes.
Colorado doesn't require an operating agreement, but skipping it is a mistake. This document defines ownership percentages, capital contributions, voting rights, profit allocation, member procedures, and dissolution rules. Without it, state default rules apply.
Draft it right after your Articles get approved, have all members sign it, and keep it private—no state filing needed.
First, get your federal Employer Identification Number for free through the IRS portal. Additionally, register for relevant state tax accounts through the Colorado Department of Revenue—sales tax, employer withholding, or unemployment insurance. Local governments have their own rules, so check city or county websites for business licenses and health permits.
Creating your LLC is just the beginning. Staying compliant will require your consistent attention. Colorado demands:
Your Periodic Report is due every year within a five-month window around your entity's anniversary month, with a $25 filing fee. Filing online through the Colorado Secretary of State's periodic report system is the only option and gives you instant confirmation. Miss that window? Colorado charges a $50 late fee and marks your company "delinquent."
Your tax situation depends on how you've structured things. By default, profits flow to your personal return, where you'll pay Colorado's flat 4.4% income tax. There's no separate franchise tax, but if you elect C-corp status, you'll face corporate income tax instead.
How long does formation take in Colorado?
Colorado processes your Articles of Organization online, usually within 24 hours. You'll get an email confirmation almost immediately.
Can I be my own registered agent in Colorado?
Yes, if you have a Colorado street address and can be available during business hours. Your address becomes public record, and missing legal documents could put your business at risk.
Is an Operating Agreement required?
No, but you'd be smart to have one. Banks, investors, and even solo entrepreneurs rely on it to establish ownership, determine profit distribution, and resolve disputes. You can write it yourself at no cost.
How does Colorado compare with its nearby states in terms of LLC formation fees?
Colorado costs significantly less than many neighbors. Colorado costs significantly less than many neighbors.
Discern handles Colorado LLC compliance without you lifting a finger, providing real-time processing estimates and clear status updates. Most Discern filings are completed in minutes, eliminating the uncertainty and stress of traditional compliance management.
Our system handles multi-state compliance simultaneously, pre-fills forms with your entity information, and ensures you never miss a critical deadline again, including for multi-state franchise tax.
Book a demo with Discern to get started.
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