How to Start an LLC in Colorado in 2026: Filing, Periodic Report and First-Year Cost

Colorado is one of the fastest and cheapest states in which to form an LLC. You file articles of organization online with the Secretary of State, pay $50, and the LLC usually exists within minutes. The ongoing cost is small too: a periodic report each year for $25. The trap is the deadline. Miss the periodic report window and your LLC slides from good standing to noncompliant to delinquent, and curing that costs several times the original fee. This guide walks a first-time founder through each step, explains how Colorado's report calendar works, covers sales tax in a state where many cities run their own tax systems, and ends with a worked first-year budget. Every fee was checked against the Secretary of State's fee schedule and the Colorado Revised Statutes in October 2026.

Quick answer

To start an LLC in Colorado, file articles of organization online with the Colorado Secretary of State and pay $50. Name a registered agent aged 18+ who lives or works in Colorado and consents. Every year, file a periodic report ($25) within two months either side of your anniversary month.

• The name must include LLC, L.L.C., limited, ltd., or limited liability company (or co.)

• Late periodic report: $50 penalty; delinquent LLCs cure for $100

• Trading under another name needs a $20 trade name filing

• Certificates of good standing are free

• Sales tax: 2.9% state rate plus local taxes; home-rule cities license separately

What a Colorado LLC is and who should form one

A Colorado LLC is formed under the Colorado Limited Liability Company Act, Article 80 of Title 7 of the Colorado Revised Statutes, with filing rules shared across entity types in Article 90. It does what an LLC does in every state: the business's debts and lawsuits belong to the company, so your personal savings and home are not at risk simply because you own it. That protection lasts only while the LLC is run as a separate business, with its own bank account, contracts in its name and records of the money you put in and take out.

The Secretary of State's business section is Colorado's registry. Its website is where you search names, file the articles and periodic reports, register trade names and download certificates. Colorado was an early adopter of online filing, and most business filings are made through the website rather than on paper.

For federal tax, a single-member LLC is a disregarded entity and a multi-member LLC is a partnership unless you elect corporate treatment. Colorado follows the federal choice. Colorado LLCs suit tradespeople, outdoor-recreation outfitters, short-term rental owners, consultants, online sellers and small shops. You do not need to live in Colorado or be a US citizen to own one, but your registered agent must live or have a usual place of business in the state. If your business actually operates in another state, you would also have to register there, so form where you work.

Colorado LLC at a glance (2026)

$50

Articles of organization

online

$25

Periodic report

every year

$50

Late penalty

once noncompliant

$100

Cure delinquency

statement curing delinquency

Step 1: choose a name the Secretary of State will accept

C.R.S. § 7-90-601 requires an LLC's name to include one of these: "limited liability company", "ltd. liability company", "limited liability co.", "ltd. liability co.", "limited", "l.l.c.", "llc" or "ltd." Colorado's list is broader than most states', so a traditional-sounding "Front Range Joinery Ltd." is acceptable for an LLC.

The name must be distinguishable on the Secretary of State's records from every other entity name and from names reserved by others. Use the business database search on the Secretary of State's website before you file and try a few versions; differences only in punctuation, articles such as "the", or the entity ending usually do not make a name distinguishable.

If you are not ready to file, a name reservation costs $25. Most founders skip it and file the articles, which claims the name at once. Registering a name with the state is not a trademark, so check the federal trademark database before investing in branding.

Trade names. If your LLC will trade under a name other than its legal name, for example "Peak Coffee" for "Peak Hospitality LLC", Colorado requires a statement of trade name, filed online for $20. Our DBA guide explains how trade names work across states.

Step 2: appoint a registered agent

Every Colorado LLC must keep a registered agent. Under C.R.S. § 7-90-701 the agent can be:

• An individual aged 18 or older whose primary residence or usual place of business is in Colorado, including you or another member.
• A Colorado entity with a usual place of business in the state, including the LLC itself if it has a Colorado office.
• A foreign entity authorised to do business in Colorado with a usual place of business here, such as a commercial registered agent.

Any filing that appoints an agent must state that the agent has consented. Colorado's online form asks you to confirm consent with a checkbox, so get the person's agreement before you file. The agent's address goes on the public record, and the agent receives lawsuits and official notices for the company.

Registered agent options in Colorado

	You or another resident	Commercial agent
Who qualifies	18+, lives or works in Colorado	Entity with a usual place of business in Colorado
Yearly cost	$0	About $50–$300 (market estimate)
Address on public record	Your home or office	The agent's office
Consent	Confirmed in the online filing	Confirmed in the online filing
Change later	$10 statement of change	$10 statement of change

Who qualifies

You or another resident

18+, lives or works in Colorado

Commercial agent

Entity with a usual place of business in Colorado

Yearly cost

You or another resident

$0

Commercial agent

About $50–$300 (market estimate)

Address on public record

You or another resident

Your home or office

Commercial agent

The agent's office

Consent

You or another resident

Confirmed in the online filing

Commercial agent

Confirmed in the online filing

Change later

You or another resident

$10 statement of change

Commercial agent

$10 statement of change

The commercial agent range is our estimate from published provider pricing, not an official figure. The real trade-off is privacy and reliability: working from home puts your home address on the record, and an agent who is often away may miss a lawsuit. Changing the agent or the agent's address later uses a statement of change at $10.

Step 3: file articles of organization online

You file on the Secretary of State's website by choosing to form a new business and selecting a limited liability company. Under C.R.S. § 7-80-204, the articles state the LLC's name, its principal office address, the registered agent's name and address, the name and mailing address of each person forming the LLC, whether it is member-managed or manager-managed, and that it has at least one member. You can add other provisions, but most small businesses keep the articles short and put their rules in an operating agreement.

Filing a Colorado LLC

1. 1

   Search the name

   Use the Secretary of State's business database search to confirm the name is distinguishable.

2. 2

   Start a new filing online

   On the Secretary of State's site, choose to file a document forming a new limited liability company.

3. 3

   Enter the agent and principal office

   Give the registered agent's name and Colorado address, and confirm the agent has consented.

4. 4

   Choose member- or manager-managed

   Add the name and mailing address of each person forming the LLC and confirm there is at least one member.

5. 5

   Pay $50

   Pay by card. The filing is usually processed straight away and you can download the filed articles.

   Tip: Sign up for the Secretary of State's email notifications on your entity record so you receive periodic report reminders.

Speed. Online filings are normally processed almost immediately. The Secretary of State does not sell expedited service for business filings; because review is fast, there is no need.

Common errors. Filings fail or need correcting when the name is not distinguishable, the agent has not actually consented, or an address is incomplete. If you made a mistake on an accepted filing, Colorado allows a statement of correction, and other changes go through articles of amendment.

Step 4: EIN, operating agreement and bank account

With the articles filed, apply to the IRS for an employer identification number. It costs Free ($0) and takes one online session; our EIN guide shows each screen. You need it to open a bank account and to register for Colorado taxes.

Colorado does not ask you to file an operating agreement, but the LLC Act lets the agreement set most of the rules, from profit splits to buyouts. Without one, the Act's defaults apply. A single-member LLC should still sign a short agreement, because banks ask for it and courts look at it when deciding whether the company is genuinely separate from you.

Open the business bank account in the LLC's exact legal name and keep business money there. Mixing funds is the most common reason a court ignores an LLC's liability protection.

Beneficial ownership reporting. Since FinCEN's March 2025 interim final rule, companies formed in the United States do not file beneficial ownership information reports, so a new Colorado LLC has no BOI filing (current position: Not required for US-formed companies).

Step 5: the periodic report, and how good standing is lost

Colorado's annual filing is called a periodic report. Under C.R.S. § 7-90-501, the first one is tied to the first anniversary of the month your articles took effect, and later reports follow every year. Your periodic report month appears on your entity's summary page on the Secretary of State's website. The report confirms the LLC's name, registered agent and principal office, and costs $25. The fee rose from $10 on July 1, 2024, so older guides that quote $10 are out of date.

The filing window. You can file from two months before your periodic report month until two months after it without penalty. If you sign up for email notifications, the Secretary of State emails a reminder the month before your report month, but the responsibility to file stays with you.

Noncompliant, then delinquent. If the report is not filed by the end of the second month after your report month, the LLC's status becomes noncompliant and the $50 late penalty applies on top of the report fee. You then have a further two months to file the late report. If you still don't, the LLC becomes delinquent. Take an LLC with a January report month: the report is due by March 31; if missed, the LLC is noncompliant and a late report is due by May 31; if that is missed too, the LLC is delinquent from June.

Curing delinquency. A delinquent LLC has lost good standing, which can block bank loans, contracts and certificates. You restore it by filing a statement curing delinquency for $100, together with the outstanding report. The Secretary of State holds your name for 400 days from the date of delinquency; after that, the record's name is changed to include "delinquent" and the date, and anyone else can take your original name. Entities delinquent for five years or more can still cure, but must add a signed affidavit and a copy of the signer's photo ID.

A Colorado LLC's report calendar (January report month)

November–December

Window opens; email reminder in December if you signed up

January

Periodic report month

By March 31

File the $25 report with no penalty

April 1

Status noncompliant; $50 late penalty applies

By May 31

Last date to file the late report

June

Status delinquent; cure costs $100 plus the report

Step 6: sales tax and other registrations

The Secretary of State filing creates the LLC; tax and licence registrations are separate. Colorado's online one-stop, MyBizColorado, lets you register with the Department of Revenue and the Department of Labor and Employment in one session.

Sales tax licence. If you sell taxable goods, you need a Colorado sales tax licence before your first sale. The state licence fee is $16 (prorated depending on when in the two-year cycle you apply), and new accounts pay a $50 deposit for the first location. The state rate is 2.9%, and counties, cities and special districts add their own. Returns are due the 20th of the month after the period.

Home-rule cities. Colorado's twist is that many larger cities, including Denver, Aurora, Boulder and Colorado Springs, are "home-rule" cities that run their own sales tax. You get a separate city licence and file city returns, either directly with the city or through the state's SUTS portal for participating cities. Our Colorado sales tax guide lists the rules for the main cities, and our Colorado business license guide covers city licences and permits.

Employees. If you hire, register for state withholding with the Department of Revenue and for unemployment insurance with the Department of Labor and Employment, and buy workers' compensation insurance. Colorado employers also take part in the state's paid family and medical leave insurance (FAMLI) programme. Our guide to hiring your first employee covers the federal side.

How Colorado LLC owners are taxed

Profit from a single-member or partnership-taxed LLC flows to the owners' Colorado returns. Colorado taxes individual income at a flat rate, which was 4.4% for tax year 2025. The rate has been cut temporarily in some years when Colorado's TABOR revenue limit triggers a refund mechanism; for 2024 it was 4.25%. Check the Department of Revenue's guide for the rate that applies to the year you are filing.

Federal self-employment tax applies to the profit of members who work in the business. An S corporation election can reduce it once profits support a reasonable salary; see LLC vs S corp and how to pay yourself from an LLC before you elect.

Colorado also levies a business personal property tax on equipment and furniture used in a business, assessed by the county. Small businesses whose property falls under the state's exemption threshold file a declaration but may owe nothing; ask your county assessor.

What it costs: a worked first-year budget

The table shows three realistic Colorado LLCs. Secretary of State and state sales tax fees are official; the agent line is an estimate, and city licence fees vary by city so they are left out of the totals.

What the table leaves out. Home-rule city licences, county business personal property tax, insurance, professional fees and trade licences all sit on top. Food businesses need county health licences, and some trades need state licences from the Department of Regulatory Agencies.

Year two and after. The state's recurring charge is only the $25 periodic report. That is lower than many states: a New Jersey LLC pays a larger annual report fee, while an Arizona LLC pays no yearly state fee at all.

Worked examples

A Denver software consultant. Lena files her articles online on January 14, 2026, names herself as registered agent at her Denver home office and pays $50. The filing is accepted within minutes and she gets her EIN that afternoon. She sells non-taxable services, so she needs no sales tax licence. Her periodic report month is January; she files each year in December or January for $25.

A Boulder gift shop with a brand name. Arun reserves "Flatiron Goods LLC" for $25 while negotiating a lease, then files the articles and a $20 trade name for "Flatiron Paper Co." Before opening, he registers through MyBizColorado for a state sales tax licence and separately applies for a City of Boulder sales tax licence, because Boulder is a home-rule city.

A missed report, fixed late. A Pueblo landscaping LLC with an April report month forgets to file. On July 1 it becomes noncompliant, and the owner pays $25 plus the $50 penalty in August, before the end of the late window. Had he waited until September, the LLC would have been delinquent and he would also have needed the $100 statement curing delinquency.

Colorado LLC launch checklist

0/10

• Name searched on the Secretary of State's database and distinguishable
• Registered agent aged 18+ in Colorado who has consented
• Articles filed online and $50 paid
• Email notifications switched on for periodic report reminders
• Trade name filed if you trade under another name
• EIN obtained from the IRS
• Operating agreement signed by all members
• Business bank account opened in the LLC's name
• State sales tax licence and any home-rule city licence before the first sale
• Withholding, unemployment, FAMLI and workers' compensation before the first hire

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Common mistakes and how to fix them

Budgeting the old $10 report. The periodic report has cost $25 since July 1, 2024. Look-alike mailers sometimes charge several times that to "file" the same report; file it yourself on the Secretary of State's website.

Letting the LLC slide to delinquent. Each stage costs more: the $25 report, then $50 more once noncompliant, then $100 to cure delinquency. Put your report month in your calendar the day you form.

Using a trade name without filing it. Trading as "Peak Coffee" when the LLC's name is "Peak Hospitality LLC" requires a statement of trade name. Without it, contracts and bank deposits in the trade name can cause problems.

Only registering with the state for sales tax. In home-rule cities you need the city licence too. Selling in Denver with only a state licence leaves city tax unpaid.

Naming an agent who hasn't agreed. The filing must confirm consent. If your agent moves or resigns, file a statement of change straight away.

Official links

• Colorado Secretary of State — BusinessName search, articles, periodic reports, trade names
• Business Organizations Fee Schedule$50 articles, $25 periodic report
• Periodic reports FAQFiling window and reminders
• MyBizColoradoSales tax, withholding and unemployment registration
• Colorado Department of Revenue — TaxationSales tax licence and income tax
• IRS — Apply for an EINFree

Out-of-state LLCs doing business in Colorado

An LLC formed elsewhere that does business in Colorado files a foreign entity statement of authority for $100, keeps a Colorado registered agent and files the same periodic report each year. If you live and work in Colorado, forming here from the start avoids paying a second state's fees.

What to do next

Check your name with the LLC name checker, confirm your registered agent, then file online and get your EIN the same day. Use the startup cost calculator to fold the $50 filing, sales tax licence and city licences into your opening budget, and the sales tax calculator to price goods with Colorado's state and local taxes included. If you are still choosing a structure, read LLC vs sole proprietorship first.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

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

The Colorado Secretary of State charges $50 to file articles of organization online. Each year after that you file a periodic report for $25. A name reservation costs $25, a trade name $20, and certificates of good standing are free. If you sell taxable goods, add a state sales tax license and any city license.

When is the Colorado periodic report due?

Your periodic report month is the anniversary month of your formation, shown on your entity's summary page. You can file from two months before that month until two months after it without penalty. If you miss that window, the entity becomes noncompliant and a $50 late fee applies; if the report is still not filed two months later, the entity becomes delinquent.

What happens if my Colorado LLC becomes delinquent?

A delinquent LLC loses good standing. You cure it by filing a statement curing delinquency for $100 plus the missing periodic report. The Secretary of State holds the name for 400 days after delinquency; after that, the record's name is changed to include the word delinquent and others can take the original name.

Can I be my own registered agent in Colorado?

Yes. C.R.S. § 7-90-701 allows any individual aged 18 or older whose primary residence or usual place of business is in Colorado to serve. A Colorado entity with a usual place of business in the state, including the LLC itself, can also serve. The agent must consent to the appointment, and changing the agent later costs $10.

How long does it take to form an LLC in Colorado?

Colorado's online filings are usually processed almost immediately, so most LLCs exist the same day you file. The Secretary of State offers no paid expedited service because online filing is already fast. You can then get your EIN online the same day and register for state taxes through MyBizColorado.

What taxes does a Colorado LLC pay?

Profits pass through to the owners, who pay Colorado's flat income tax (4.4% for tax year 2025) plus federal self-employment tax. If you sell taxable goods, you collect the 2.9% state sales tax plus local taxes. Home-rule cities such as Denver run their own sales tax licences and returns.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Business Organizations Fee Schedule (revised July 1, 2024) — Colorado Secretary of State · accessed 9 October 2026
2. 2.Periodic reports — Business FAQs — Colorado Secretary of State · accessed 9 October 2026
3. 3.Business FAQs — Delinquency — Colorado Secretary of State · accessed 9 October 2026
4. 4.C.R.S. § 7-90-501 — Periodic report — Colorado Revised Statutes (text via Colorado Public Law) · accessed 9 October 2026
5. 5.C.R.S. § 7-90-701 — Registered agent — Colorado Revised Statutes (text via Colorado Public Law) · accessed 9 October 2026
6. 6.C.R.S. § 7-90-601 — Entity names — Colorado Revised Statutes (text via Colorado Public Law) · accessed 9 October 2026
7. 7.C.R.S. § 7-80-204 — Articles of organization — Colorado Revised Statutes (text via Colorado Public Law) · accessed 9 October 2026
8. 8.Individual Income Tax Guide — Colorado Department of Revenue · accessed 9 October 2026
9. 9.Standard retail sales tax license — Colorado Department of Revenue · accessed 9 October 2026
10. 10.Get an employer identification number — IRS · accessed 9 October 2026
11. 11.Beneficial Ownership Information — FinCEN · accessed 9 October 2026