Colorado LLC State Tax Obligations — After Formation
Once your Colorado LLC is formed, you have ongoing state tax obligations beyond the $25 Periodic Report. This page covers what you owe to the Colorado Department of Revenue (separate from the Secretary of State compliance). For the full tax breakdown, see our Colorado LLC tax guide. For all post-formation requirements, see our compliance guide.
Your State Tax Obligations
1. Colorado Income Tax (4.4% Flat Rate)
All LLC income that passes through to Colorado-resident members is subject to the 4.4% flat state income tax. File annually with the Colorado Department of Revenue.
- Single-member: Report on your personal Colorado return (Form DR 0104)
- Multi-member: LLC files Form DR 0106 (partnership return); members report on individual returns
- Due date: April 15 (with federal extension, October 15)
- Portal: Colorado Revenue Online (colorado.gov/revenueonline)
2. Quarterly Estimated Payments
If you expect to owe $1,000+ in Colorado income tax, make quarterly payments using Form DR 0104EP. Due dates: April 15, June 15, September 15, January 15. See our quarterly estimates guide.
3. Sales Tax (If Applicable)
If selling taxable goods or services, register for a Colorado Sales Tax Account and collect/remit. The system is complex due to home-rule cities. See our sales tax guide.
4. Withholding Tax (If You Have Employees)
If your LLC has W-2 employees in Colorado, withhold Colorado income tax from paychecks and remit to the DOR. Register at colorado.gov/revenueonline.
5. Unemployment Insurance (If You Have Employees)
Register with the Colorado Department of Labor and Employment (CDLE) for unemployment insurance. Rates vary by industry and claims history.
What Colorado Does NOT Charge LLCs
- No franchise tax
- No gross receipts tax
- No privilege tax
- No minimum entity-level tax
- No business personal property tax (varies by county for tangible property)
Key Registration Points
Ready to get started?
Get Started| Registration | Agency | When Required |
|---|---|---|
| Income tax | CO Dept of Revenue | All LLCs with CO income |
| Sales tax | CO Dept of Revenue | If selling taxable goods/services |
| Withholding tax | CO Dept of Revenue | If you have employees |
| Unemployment insurance | CO CDLE | If you have employees |
| Workers' compensation | Private insurer | If you have employees (mandatory) |
FAQ
Do I need to register with the Colorado Department of Revenue?
If you'll be collecting sales tax or withholding from employee paychecks, yes. If you're a single-member LLC with no employees and no taxable sales, you report income on your personal return without separate DOR registration.
What's the penalty for not filing Colorado income tax?
Failure-to-file penalty: 5% per month (up to 25%). Failure-to-pay penalty: 0.5% per month (up to 25%). Plus interest on unpaid amounts.
Is the Colorado income tax the same as the Periodic Report?
No. The Periodic Report ($25) is filed with the Secretary of State to maintain your LLC's active status. Income tax is filed with the Department of Revenue based on your LLC's earnings. They are completely separate obligations to different agencies.