Cost to Form and Maintain a Colorado LLC (2026)

This is the complete cost breakdown for forming and maintaining an LLC in Colorado. Colorado is one of the cheapest states in the country for LLC formation and maintenance — $50 to form and $25 per year after that. All fees listed are current as of 2026 and are paid to the Colorado Secretary of State through sos.colorado.gov unless otherwise noted.

Formation Costs (One-Time)

Absolute minimum to form: $50 (just the state filing fee if you DIY everything and serve as your own registered agent)

Ongoing Annual Costs

Minimum annual maintenance: $25 (just the Periodic Report fee to the Secretary of State)

Colorado-Specific Cost Advantages

Colorado's fee structure is genuinely one of the cheapest in the nation for LLC owners:

1. No franchise tax — Unlike California ($800/year minimum), Texas (0.375%-0.75% margins tax), or Tennessee ($300 minimum franchise/excise), Colorado charges zero entity-level tax on LLCs
2. $50 formation is among the lowest — Only a handful of states are cheaper (Kentucky at $40, Montana at $35)
3. $25 annual report is near the bottom — Compare to Delaware's $300 annual tax, Nevada's $350 annual list, or Wyoming's $60 report
4. No minimum tax — Some states charge a minimum regardless of revenue (California's $800, Tennessee's $300); Colorado charges nothing beyond the $25 report
5. Periodic Report fee history — The fee was just $10 until July 1, 2024, when it increased to $25. Even at the new rate, it remains one of the lowest in the country

The Periodic Report Fee Change (2024)

Effective July 1, 2024, Colorado increased the Periodic Report fee from $10 to $25. The late fee also changed: if you file during months 6-7 of your filing window, you pay an additional $50 penalty. After month 7, the Secretary of State begins the administrative dissolution process under the Colorado LLC Act.

The Periodic Report must be filed online — Colorado does not accept paper annual filings.

How Colorado Compares to Other States

*California's first-year franchise tax exemption (AB 85) expired after 2023. LLCs formed 2024+ owe $800 from year one.

For detailed state comparisons, see Colorado vs Delaware and Colorado vs Wyoming.

Hidden Costs to Watch For in Colorado

1. Periodic Report late fee ($50) — Automatically applied if you file during the 6th or 7th month of your filing window. Set a reminder for your anniversary month.
2. Municipal business licenses — Denver requires a general business license ($50 base); other cities vary. Aurora, Colorado Springs, Lakewood, and Fort Collins each have their own requirements.
3. Sales tax complexity — Colorado has a notoriously complex sales tax system with state, county, city, and special district taxes. Home-rule cities (Denver, Aurora, Lakewood, etc.) collect their own sales tax separately from the state.
4. Reinstatement fees — If administratively dissolved, reinstatement costs $50 per delinquent year plus all back Periodic Report fees.
5. Colorado Department of Revenue registration — Free, but required before collecting sales tax. Failure to register carries penalties.
6. Workers' compensation — Required if you have employees (not optional in Colorado). Rates vary by industry classification.

First-Year Budget Calculator

Solo consultant LLC (no employees, no physical products):

• Articles of Organization: $50
• Periodic Report (if due year 1): $25
• EIN: Free
• Registered agent: $99/yr (or free first year with our service)
• Total: $75-$174

E-commerce LLC (sells physical goods):

• Articles of Organization: $50
• Periodic Report: $25
• Sales tax license: $16-$50 (varies)
• Registered agent: $99
• Total: $190-$224 (plus sales tax compliance costs)

Real estate LLC (rental property):

• Articles of Organization: $50
• Periodic Report: $25
• Registered agent: $99
• Property-specific insurance: $500-$2,000
• Total: $674-$2,174

FAQ

What's the cheapest way to form a Colorado LLC?

File directly through sos.colorado.gov for $50. You'll need to prepare the Articles of Organization yourself, designate yourself (or someone you know) as registered agent, and draft your own operating agreement. The online system is straightforward — Colorado's portal walks you through each required field.

Are there any annual taxes specific to Colorado LLCs?

No entity-level taxes. Colorado LLC income passes through to members at the 4.4% flat state income tax rate. The only mandatory annual LLC fee is the $25 Periodic Report. Colorado does not impose franchise tax, gross receipts tax, or minimum entity tax.

Is the Periodic Report fee tax-deductible?

Yes. The $25 Periodic Report fee and any other state filing fees are deductible as ordinary business expenses on your federal return (Schedule C for single-member LLCs, Form 1065 for multi-member).

When did the annual fee increase?

July 1, 2024. The Periodic Report fee went from $10 to $25. The late filing penalty also increased to $50.

How much should I budget for my first year?

For a simple single-member LLC, your costs are the $50 state filing fee plus our flat service fee, plus $99/year for registered agent service. Your only additional cost in year 1 is the $25 Periodic Report if it falls due before your first anniversary.