Forming an Colorado LLC

(2025 Guide)

2025 LLC Guide

Custom Dropdown

Form your LLC quickly and easily!

Northwest   ($39 + state fee)
LegalZoom ($149 + state fee)

In This Guide

Special Offer alert! 

forms your LLC with Northwest for $39 (60% off). Details inside.

How to Start an LLC in Colorado 2025 Step-by-Step Guide

Discover how to start an LLC in Colorado, our step-by-step guide. Learn the essential requirements and process to form your business today.

To establish an LLC in Discover how to start an LLC in California, our step-by-step guide. Learn the essential requirements and process to form your business today.Colorado, submit the Articles of Organization to the Colorado Secretary of State. This process costs $50 and typically takes one day for approval.

Here are the five steps you need to follow:

  • Choose an LLC Name
  • Select a Registered Agent
  • File Articles of Organization
  • Create an Operating Agreement
  • Obtain an EIN.

If you prefer to set up your LLC independently, follow our free guide below. For those who want assistance, we suggest hiring Northwest Registered Agent.

Need to save time?

Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).

(See why Northwest is #1: Northwest vs LegalZoom.)

What is the cost to establish an LLC in Colorado?

Starting an LLC in Colorado requires a fee of $50, followed by an annual cost of $10. What do these fees cover? The initial $50 fee is a one-time charge for submitting the Articles of Organization to the Colorado Secretary of State, which officially forms your LLC. The annual $10 fee is for filing your Periodic Report, a necessary submission to maintain your LLC’s good standing with the state. For more information, refer to LLC Costs in Colorado.

How soon can you obtain an LLC in Colorado?

Submitting your LLC application online results in immediate approval. The Colorado Secretary of State does not process LLC applications by mail. For updates on processing times, see How long does it take to get an LLC in Colorado.

Here are the steps to forming an LLC in Colorado

1. Conduct a Search for Your Limited Liability Company Name

Verify the availability of your LLC Name within the state to ensure it’s not already in use. In Colorado, no two businesses can share the same name.

Start by searching your desired business name and comparing it with those already registered in Colorado. Utilize the Colorado Business Database Search provided by the Colorado Secretary of State to confirm the uniqueness of your preferred LLC Name. Additionally, acquaint yourself with Colorado’s naming regulations to facilitate the approval of your LLC.

We’ll provide further explanation here: Colorado LLC Name.

Note: 

Most people choose “LLC”.

2. Pick a Colorado Registered Agent

The following step is selecting a Colorado Registered Agent. A Registered Agent in Colorado is either an individual or a company responsible for receiving legal documents and state notifications on behalf of your Colorado LLC.

Who can serve as a Registered Agent for an LLC? You have three choices for the Registered Agent for a Colorado LLC:

– Yourself
– A friend or family member
– A Registered Agent Service

The Registered Agent for your LLC must possess a physical street address in Colorado, as PO Boxes are not permitted. The Registered Agent’s name and address will be available on public records via the Colorado Secretary of State’s Business Database Search.

If you lack a Colorado address or prefer enhanced privacy, you can engage a Registered Agent Service for your LLC. Many Registered Agent Services also provide LLC formation services if you want assistance in starting a Limited Liability Company.

We suggest Northwest Registered Agent

What we appreciate most about Northwest is their willingness to let you use their office address throughout your LLC filing, allowing you to keep your address private. They also scan any mail sent to your LLC and upload it to your online account. Northwest offers outstanding customer service, and we trust them as our own Registered Agent.

Special offer: 

Form your LLC with Northwest for $39 + state fee and get a free year of Registered Agent service.

(Read our Northwest Registered Agent review.)

3. Submit Articles of Organization

To establish an LLC, you must submit the Colorado Articles of Organization. This document, once filed with the Colorado Secretary of State, officially creates your LLC.

The fee for filing the Colorado Articles of Organization online is $50. This is a one-time fee for submitting your Articles of Organization.

If you prefer to handle the LLC Formation documents on your own, check out our detailed guide on filing Colorado Articles of Organization. Alternatively, you can hire a service to manage it for you.

Need to save time? 

Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).

(See why Northwest is #1: Northwest vs LegalZoom.)

4. Draft an LLC Operating Agreement

An LLC Operating Agreement acts as a partner document to the Articles of Organization.

While the Articles of Organization establish your LLC, the Operating Agreement identifies its ownership. Some banks may require the Operating Agreement when setting up an LLC bank account. Moreover, having this agreement is beneficial if legal issues arise, as it demonstrates proper management of your LLC. For this reason, we advise all LLCs, even Single-Member LLCs, to have an Operating Agreement.

Also, an Operating Agreement is an “internal document.” This means you don’t have to submit it to the state or the IRS (Internal Revenue Service). Just ensure you keep a copy with your business records. You can download a free template below. Afterward, learn how to complete it by watching our comprehensive Colorado Operating Agreement video.

Download a free LLC Operating Agreement:

Member-managed: Google Doc | Word | PDF
Manager-managed: Google Doc | Word

(What’s better? See Member-managed vs Manager-managed LLC)

5. Obtain an EIN for your LLC

The subsequent step is to secure a Colorado EIN Number from the IRS for your LLC.

Note: An EIN Number is also known as a Federal Tax Identification Number or Federal Employer Identification Number.

An EIN Number is essential for:
– Identifying your LLC for tax purposes
– Opening a business bank account
– Applying for business licenses and permits

What is the cost of an Employer Identification Number?
Obtaining an EIN Number from the IRS is entirely free.

How long does it take to receive an EIN?
If you apply online, it takes about 15 minutes. For applications by mail or fax, it can take 1-3 months.

How do I obtain an EIN?

US Citizens/US Residents: If you have an SSN or ITIN, you can apply for an EIN online. Follow these steps: Apply for an EIN online.

Non-US Residents: You cannot apply for an EIN online, but you can still obtain one by fax or mail. Follow these steps: How to get an EIN without an SSN or ITIN.

What should I do after my LLC is approved?

Once your LLC gets the green light from the Colorado Secretary of State, there are a few more tasks to tackle.

Open a business bank account for your LLC.

It’s crucial to set up a separate business bank account for your LLC. This simplifies accounting and keeps your business financial records distinct from personal ones, thus preserving your personal liability protection by ensuring business and personal finances remain separate.

Obtain necessary Colorado business licenses and permits.

Fortunately, Colorado doesn’t require a state general business license, but you might need a local license or permit depending on your LLC’s location. For instance, launching a daycare may require a specific license from your city or county. Check out our Colorado Business License page for more information.

Submit your Colorado Periodic Report.

Every LLC in Colorado must submit a Periodic Report annually. This filing maintains your LLC’s good standing with the Colorado Secretary of State. The fee for this report is $10 per year, due by the end of your LLC’s anniversary month. The initial report is required the year following your LLC’s approval. For example, if your LLC was approved on February 15, 2025, your first report is due by March 31, 2026, and annually by March 31 thereafter. Reports can be filed online or by mail, though online filing is recommended for its simplicity. Follow our detailed guide here: Colorado LLC Periodic Report.

File and pay taxes.

LLCs themselves don’t pay federal income taxes; rather, the members do. This means the owners include the LLC income on their personal tax returns. How is your LLC taxed? By default, the IRS taxes an LLC based on the number of owners: a Single-Member LLC is taxed as a Sole Proprietorship, while a Multi-Member LLC is taxed as a Partnership. You can opt for your LLC to be taxed as a C-Corporation or S-Corporation. Additionally, there are state, local income, and sales taxes to consider. Learn more at Colorado LLC Taxes.

Helpful Resources

How to Start an LLC in Colorado FAQs

Can I start an LLC in Colorado online?

Yes, you can establish your Limited Liability Company online in Colorado. The fee for filing the Articles of Organization is $50. Once you submit your LLC online, it gets approved immediately.

One key advantage of an LLC is safeguarding your personal assets from business debts and liabilities. This means that if your business faces a lawsuit, your personal assets—such as your home, vehicles, and bank accounts—remain protected. This protection covers all LLC owners, known as Members, regardless of whether it’s a Single-Member or Multi-Member LLC. Unlike a Sole Proprietorship or Partnership, where owners lack such protection in lawsuits, LLCs offer a preferable business structure.

Additionally, LLCs benefit from pass-through taxation. The LLC itself doesn’t pay federal income taxes; instead, profits pass through to the Members, who then report and pay taxes on their personal returns. Colorado aligns with this federal tax treatment, making state income taxes similar. For further details, see How are LLCs taxed.

Whether starting an LLC in Colorado is beneficial depends on where you reside and conduct business. If you live or operate in Colorado, starting your LLC there is advisable. Although some websites highlight tax benefits of other states, these are irrelevant if you don’t live or work there.

For instance, forming an LLC in Nevada while living and working in Colorado means you’ll need to register your Nevada LLC in Colorado, incurring extra fees and still paying Colorado taxes. This leads to unnecessary expenses and complications without any benefits.

In conclusion, if you live and work in Colorado, it’s a suitable state to start your business. If you don’t, then it’s not advisable.

Leave Your Comment

About Us

We specialize in guiding individuals through the process of forming LLCs across all states, while also offering a range of comprehensive business services tailored to entrepreneurs.

contact details
Scroll to Top

Special Offer Alert

form your LLC with Northwest for $39 (60% off)