Start Your LLC In Colorado with One IBC

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Basic

$199

+ States Filing Fees
Form my LLC

02 weeks processing

Agent fee

Registered Address

Document filing with the Secretary of State

Standard

$499

+ States Filing Fees
Form my LLC

05 days processing

Includes everything in basic package

Comprehensive name check

Preparation of Articles of Incorporation

Lifetime customer support (phone & email)

Federal Tax ID (EIN) Obtainment Service

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$599

+ States Filing Fees
Form my LLC

01 day processing

Includes everything in standard package

2 hours of free tax consultation

Key Points of Colorado LLCs

Flexible Formation Process

Flexible Formation Process

Colorado offers a streamlined and fully online LLC formation process with minimal bureaucratic delays, making it ideal for new business owners.

Asset Protection and Tax Simplicity

Asset Protection and Tax Simplicity

Colorado LLCs provide limited liability protection and benefit from pass-through taxation, reducing administrative burdens and double taxation risks.

Supportive Legal Framework

Supportive Legal Framework

With modern laws and digital filing systems, Colorado ensures easy compliance, transparency, and consistent support for LLC growth.

Understanding Colorado LLCs

A Colorado LLC combines the liability protection of a corporation with the flexibility of a partnership, making it a preferred option for business owners seeking ease of formation and strong legal safeguards. It’s known for its digital-friendly setup process and accessible support for entrepreneurs.

What is a Colorado LLC?

A Colorado LLC offers limited liability protection and operational flexibility. It allows members to avoid personal responsibility for business debts and provides options for both member-managed and manager-managed structures.

A Colorado LLC offers several benefits, including:

Efficient online filing, pass-through taxation, liability protection, and a supportive legal environment. LLC owners benefit from clear compliance steps and the state’s business-friendly infrastructure.

What is a Colorado LLC?
Why choose an LLC in Colorado?

Why choose an LLC in Colorado?

Choosing an LLC in Colorado provides asset protection, simple formation, and tax flexibility in a state that supports innovation and small businesses. The process is fast, affordable, and ideal for both local and remote business models.

Key Benefits Include:

Privacy Protection

Privacy Protection

Predictable Taxes

Predictable Taxes

No Double Taxation

No Double Taxation

Legal Environment

Legal Environment

Business Credibility

Business Credibility

Clear Guidelines

Clear Guidelines

Pros and Cons of an LLC in Colorado

Starting a Colorado LLC: Benefits

A Colorado LLC protects personal assets from business liabilities, offers flexible ownership options, and provides a simple online formation process. It requires minimal paperwork, and management structures can be customized through an operating agreement.

Taxation of a Colorado LLC

Colorado LLCs benefit from pass-through taxation, where profits are reported on members’ personal tax returns. There is no separate state-level income tax on LLCs, and compliance is streamlined through a basic periodic report instead of a full annual report.

Starting a Colorado LLC: Drawbacks

Forming an LLC in Colorado does not offer anonymous ownership, as member and agent details are part of the public record. The state does not permit series LLCs, and failure to file the required reports can lead to administrative dissolution.

Pros and Cons of an LLC in Colorado

Who can form an LLC in Colorado?

Any individual or business entity can form an LLC in Colorado. Whether you are transitioning from a sole proprietorship, starting a new business, or forming a partnership, you can file for a Colorado LLC without restrictions on the number of members. Members may include individuals, corporations, partnerships, or trusts.

To submit a Colorado LLC application, the business’s principal office is usually located within the state of Colorado. If your business is based outside of Colorado but intends to operate within the state, it will be considered a foreign LLC. In that case, you must file a Statement of Foreign Entity Authority with the Colorado Secretary of State to register your LLC for legal operation.

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Types of LLCs in Colorado

Colorado provides several LLC structures to suit different business needs, though the options are fewer than in some other states. The primary types include domestic LLCs, foreign LLCs, and professional LLCs (PLLCs). Each type offers unique features and legal requirements, ensuring flexibility for business owners while maintaining the benefits of limited liability and pass-through taxation.

Domestic LLC

Domestic LLC

A domestic LLC is the most common structure, formed and operating under Colorado law. It offers liability protection for members, shielding personal assets from business debts. Domestic LLCs can be single-member or multi-member, and management can be handled directly by members or by appointed managers. Formation requires filing the Articles of Organization with the Colorado Secretary of State, selecting a registered agent, and adhering to Colorado naming requirements.

Foreign LLC

Foreign LLC

A foreign LLC refers to a company originally formed in another state or country that wishes to conduct business in Colorado. To operate legally, the entity must register by filing a Statement of Foreign Entity Authority with the Colorado Secretary of State. This process requires providing details about the original formation, including a certificate of good standing from the home jurisdiction. Registering as a foreign LLC allows the business to expand its operations while maintaining its original structure and protections.

Professional LLC (PLLC)

Professional LLC (PLLC)

Professional LLCs are designed for licensed professionals such as lawyers, doctors, architects, or accountants. All members typically must hold the same professional license, and the formation must comply with specific regulatory requirements. The Articles of Organization must clearly state the nature of the professional services, include the names of licensed members, and meet Colorado’s naming rules. A PLLC combines the flexibility of an LLC with the compliance requirements of professional practice.

Colorado does not currently recognize Series LLCs or restricted LLCs, making these three types the primary options for business owners. Choosing the right structure depends on the nature of the business, whether it operates across state lines, and if professional licensing is required.

How to Start an LLC in Colorado

1

Choose a Business Name

Select a unique name that includes LLC or L.L.C. and ensure it’s distinguishable from existing entities in California. Use the Secretary of State’s name search tool to verify availability.

2

Appoint a Registered Agent

Designate a registered agent to accept legal documents. This can be an individual or a registered service company with a physical address in Colorado.

3

File the Articles of Organization

Submit Form LLC to the Colorado Secretary of State, providing LLC name, principal office address, and registered agent details.

4

Create an Operating Agreement

Though not required, it’s recommended to draft an Operating Agreement outlining ownership, governance, and profit distribution to reinforce liability protection and support tax compliance.

Colorado LLC Requirements

Age and Residency

Age and Residency

Number of Members

Number of Members

Management Structure

Management Structure

Registered Agent and Office

Registered Agent and Office

Name Compliance

Name Compliance

Colorado LLC Application

To start an LLC in Colorado, the key step is filing the Articles of Organization with the Colorado Secretary of State. This officially forms your business as a legal entity under Colorado law.

Required Information

    The Articles of Organization must include:

  • LLC name (with “LLC” or equivalent)
  • Registered agent’s name and physical Colorado address
  • Principal business address (must be a street address; no P.O. Box)
  • Organizer’s name and mailing address
  • Management structure (member-managed or manager-managed)
  • Unlike some states, Colorado does not restrict licensed professionals from forming PLLCs, but specific regulations may apply depending on the profession.

Filing Options

  • Online: Use the Colorado Secretary of State’s online portal for fast and efficient processing
  • By Mail: Paper filings are accepted but discouraged; online filing is the primary method.
  • In Person: Most filings are done online; limited in-person support is available for technical assistance.

Post-Filing Requirements

  • Periodic Report must be filed annually during the anniversary month of formation.
  • Operating Agreement is not filed with the state but is strongly recommended for internal governance.
  • Foreign LLCs must file a Statement of Foreign Entity Authority and include formation details from their home state.

Colorado LLC Taxation

Colorado LLC Taxation
Income Tax

Income Tax

Colorado LLCs are treated as pass-through entities by default, meaning business income is reported on the personal tax returns of the members. The LLC itself does not pay state income tax unless it elects to be taxed as a corporation.

Sales and Use Tax

Sales and Use Tax

LLCs selling physical products or taxable services must collect Colorado sales tax. The state has a base rate of 2.9%, with additional local taxes depending on the business location. Use tax may apply to purchases from out-of-state vendors.

Employer Taxes

Employer Taxes

LLCs with employees must register for wage withholding and unemployment insurance accounts with the Colorado Department of Revenue and the Department of Labor and Employment.

Colorado LLC Annual Filing (Periodic Report)

What to File

What to File

The Periodic Report includes: LLC name, principal office address, registered agent information, and confirmation of current business details. It ensures the Secretary of State has up-to-date records.

Filing Deadlines

Filing Deadlines

The initial Periodic Report is due within the three-month window around the anniversary month of the LLC’s formation date. It must be filed annually through the Secretary of State’s online portal.

Penalties & Consequences

Penalties & Consequences

Failure to file may result in the LLC’s status becoming delinquent. Continued non-compliance can lead to administrative dissolution, loss of good standing, and restricted legal capacity.

Expanding Your Colorado LLC

As your business grows, you may wish to expand your Colorado LLC to operate in other states. This requires following the appropriate procedures for registering as a foreign LLC and ensuring compliance with local regulations wherever you plan to conduct business.

Registering a Foreign LLC in Colorado

Registering a Foreign LLC in Colorado

If your LLC was formed in another state but will operate in Colorado, you must file a Statement of Foreign Entity Authority, submit details of your formation, and appoint a registered agent with a Colorado address.

Doing Business in Other States

Doing Business in Other States

To expand your Colorado LLC, register as a foreign LLC in each state where you plan to operate. This includes filing with that state’s business authority, submitting a Certificate of Good Standing, and complying with local tax and licensing regulations.

Find The Right State To
Form An LLC

Every state has different rules, costs, and considerations for LLC formation.

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Doing Business in Colorado

Frequently Asked Questions

Yes, most states require you to have a registered agent to handle legal documents and notices during business hours.

While not always required by law, having an operating agreement is a smart move to outline your LLC’s rules and avoid disputes down the road.

An EIN is a federal tax ID; most LLCs need one to open a business bank account, file taxes, or hire employees.