By Jonathan Feniak, Esq., MBA
If you're considering registering a business in Colorado, we're happy to provide some pointers. There are costs associated with starting a business, but we believe it's money well spent. You'll enjoy the liability and asset protection of an LLC, appear more professional, and qualify for potential tax savings. This page focuses on LLC fees in Colorado, both at the time of formation and in future years.
The cost of filing your Articles of Organization (the initial paperwork for your LLC) with the Colorado Secretary of State is, as of this writing, $50.00. This fee can be paid via credit or debit card only. Colorado accepts Visa, Mastercard, and American Express. This is a one time fee.
Every year, you are required by the state of Colorado to file a periodic report. This legal requirement by the state keeps the state updated as to the status of your LLC. The annual fee, as of this writing, for periodic report filing is $10 per year.
If you file your report late you may be charged a $50 late fee. The periodic report can be filed online.
The following fees do not apply to every Colorado company. Some may be incurred at formation or various points during the year when you determine the service is needed.
Having a very complex operating written by an attorney can be very costly. However, most businesses don't need anywhere near this kind of complexity. They need a simple agreement that sets up the rules for things like who will manage the business, who is entitled to receive distributions, and what happens if someone wants to sell their share of the business. That is why we provide easy to understand operating agreements at absolutely no cost to anyone who forms a company with us. We also provide our clients with fast and easy ways to schedule a consultation with an experienced and licensed attorney. If you would like to schedule a consultation with an attorney, please use the contact link on our website.
If you sell goods, you are required to charge sales tax. The rules surrounding when you must collect sales tax are very complicated because sometimes you send the collected sales tax to the state and other times you send it to a city or county. In addition, the amount you need to collect will vary based on the goods being sold, where your business is located, and other factors.
In any case, you are required to register with the Colorado Department of Revenue, open an account, and send them the sales taxes you collect. The government does not charge a fee to open an account, but you are likely to incur sales tax related costs for things like a point of sale system and spending time on product classifications.
The cost of obtaining a permit for your business will vary based on the type of business that you are conducting. Some businesses will not require any permit, but other businesses in highly regulated industries may require many different permits from different city, state, and county government entities.
An online company, for example, won't generally require any permits. If you are in construction or banking, then permits are generally required. You may also have the requirement to be bonded and insured.
A DBA or Trade Name allows your LLC to operate using a second name (one other than what's on the Articles of Organization). For example, you may have registered company as The Best Business, LLC, but would like to operate as "Best Biz." This is done by filing a DBA with the Colorado Secretary of State. As of this writing, the fee to register a DBA is $20 and there is a $10 renewal fee every year.
If you need to change the articles of organization you filed with Colorado Secretary of state, you will be charged, as of this writing, a $10 fee for doing so. Changes that will require an amendment include a name change. Through using our formation service, you can be sure your LLC meets all necessary requirements. If you’re planning on opening an LLC, we have many helpful resources on our blog including information about EINs, sole-proprietorships, and Colorado business licenses.