CobaltProsper

How to start an LLC in Colorado

By Brent Chudoba, editor Updated

Forming an LLC in Colorado costs $50 to file the Articles of Organization with the Colorado Secretary of State. After that you file an annual report of $25. Colorado charges no franchise tax on a standard LLC. The $50 fee is for online filing of the Articles of Organization (the only practical filing method). The $25/year Periodic Report keeps the LLC in good standing; this fee rose from $10 to $25 effective July 1, 2024 (missing the increase is a common stale-cost error). Since July 1, 2025, registered agents must also complete a Colorado-residency identity-verification step (HB24-1137) as part of formation and agent-change filings.

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

Colorado LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Articles of Organization)$50
Annual report$25/year
Franchise or business taxNone
Registered agentRequired

Source: Colorado Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in Colorado?

  1. Name your LLC. Pick a name that is available and meets Colorado naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. Colorado requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Articles of Organization. Submit it to the Colorado Secretary of State and pay the $50 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your annual report. Colorado charges $25 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does Colorado have a franchise tax on an LLC?

No. Colorado does not impose a franchise tax on LLCs.

How is an LLC taxed in Colorado?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. Colorado has a state individual income tax with a top rate of 4.4% (flat brackets), so those profits are taxed on your Colorado return on top of federal tax. Single flat rate of 4.40% applied to federal taxable income (with Colorado additions/subtractions), per C.R.S. 39-22-104. This base rate has applied since tax year 2022. A TABOR-triggered temporary-reduction mechanism (C.R.S. 39-22-627) cut the rate to 4.25% for tax year 2024 only; it reverted to the 4.40% base rate for tax year 2025 and later. Two bills that would have permanently cut the rate further, HB24-1065 (to 4.0%) and SB25-138 (to 4.25%), were both postponed indefinitely in committee and never became law.

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

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