If you are looking for the cheapest state to form and maintain an LLC, Colorado deserves serious consideration. With a $50 filing fee and just $10 for annual reports, it is one of the most budget-friendly options in the country. Here is everything you need to know.
Why Colorado Stands Out
- $50 filing fee. Among the lowest in the nation (tied with New Mexico and Kentucky).
- $10 annual report. The cheapest ongoing compliance cost of any state with an annual filing requirement.
- Fast processing. Online filings through the Colorado Secretary of State are typically processed within a few business days.
- Simple formation. Colorado's Articles of Organization form is straightforward and can be completed in minutes online.
How to Form
- Choose your name. Must include "LLC" or "Limited Liability Company." Search availability on the Colorado Secretary of State website (sos.state.co.us).
- File Articles of Organization. File online at the Colorado Secretary of State website. Fee: $50.
- Designate a registered agent. Can be yourself with a Colorado address, or a registered agent service.
- Get your EIN. Free at IRS.gov.
- Draft an operating agreement. Not required by Colorado law, but strongly recommended.
Colorado LLC Taxes
Form your LLC the honest way
No hidden fees, no upsells. Sedes includes everything — formation, EIN, operating agreement, and registered agent — starting at $29.
Start FreeColorado does have a state income tax — a flat 4.4% on all income. LLC income passes through to members' personal returns. While not zero like Wyoming or Texas, the flat rate is straightforward and relatively low compared to states like California (up to 13.3%) or New York (up to 10.9%).
Annual Compliance
- Periodic report: Due annually. Fee: $10. Filed online through the Secretary of State.
- State income tax: File with the Colorado Department of Revenue.
- Local licenses: Vary by city. Denver, for example, requires a business license for most businesses.
Privacy Considerations
Colorado is not a privacy-forward state. Member and manager names are listed on the Articles of Organization and are publicly searchable. If privacy is important, you may want to consider forming in Wyoming or New Mexico and registering in Colorado as a foreign LLC.
Bottom Line
Colorado is ideal for budget-conscious entrepreneurs who live or do business in the state. The total first-year cost (filing + Sedes formation fee) can be as low as $79. For ongoing years, you are looking at just $10 for the annual report plus registered agent fees.
Form your Colorado LLC with Sedes for $29 plus the $50 state filing fee.
Start your LLC with Sedes
$29 all-in. Formation, EIN, operating agreement, and registered agent included. No hidden fees. Ready in minutes.
Start Free — Talk to Sedes