Forming an LLC in Colorado (Preliminary information)
Secretary of State Jena Griswold announced the introduction of HB22-1001 “Colorado Business Rate Relief Act.” In this context, the business setup fee, normally $50, was reduced to $1 until this fund budget was exhausted.
This discount for Colorado LLC formation is expected to last until June 2023.
Source: https://www.sos.state.co.us/pubs/newsRoom
We have prepared a guide about forming an llc in the US state of Colorado, the cost of an llc to be formed in Colorado, forming an llc at the most affordable price, the tax system of Colorado companies and the steps you need to take at this stage.
To form an LLC in the state of Colorado, you must submit your application to the Colorado Secretary of State's Office. $1 must be paid to the state to apply for installation. After the process is completed, Articles of Organization will be delivered to you. When you receive the document, your Colorado LLC company has been officially established.
The registered agent company, from which you will receive support, will provide the aforementioned formation documents on your behalf during the installation phase. Thus, you do not need to take any extra action. To form your company, you can get online service from Northwest Registered Agent by paying the 39+ State filing fee.
Costs
| Service | Price | In installation | Annual |
| Fee to be Paid to the State During LLC Company Formment | 1$ | ✔ | – |
| Annual Filing | 10$ | – | ✔ |
- In addition to the installation fee, do not forget to add the Northwest Agency fee of $ 39 to the cost.
- You can renew your Northwest agency fee next year for $125 (address included)
What is Registered Agent?
Agencies that provide services for entrepreneurs who do not reside in the United States to form an llc, receive official documents from the state, and ensure that the company remains healthy are called Registered Agents.
When you decide to form an LLC in Usa, Northwest is one of the best options. Northwest provides a free mailing address for your company.
There are also different agencies, you can access the full list and detailed review page of other Registered Agent companies that establish LLCs from this link .
How to Form an LLC in Colorado?
You can form an LLC company remotely in the state online, there is no need to visit the state in person. Additionally, non-US citizens are not required to have an ID or passport. You need a registered agent for the installation. This agency will prepare the documents required for the installation for you and submit them online to the state. If you deal with Northwest agency, you do not need to pay extra for the company address because this agency has mailing addresses in all US states and allows you to use this address. Other details are below.
- Determine Your Company Name: First, you must determine the name of your LLC company. Make sure there are no conflicts with company names already in the state database. Like every state, Colorado has some name selection rules. the company name you plan to use on the state website . Choosing a Name for an LLC Company for name rules .
- You can get a domain name for your company: Check if the website domain name you will create for the business name you choose has been registered before. With Namecheap you can quickly register an llc domain name so that no one else can get and use your domain name in the future.
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- Apply Online: Determine a Registered Agent to establish your company and keep it active. Northwest is among the most affordable and highest quality options. here and order them to establish your company online. Northwest will carry out all transactions for you according to the order form in your application.
- Operating Agreement: The operating agreement, called the Operating Agreement, determines the management style and rules of the company. It is not required to be created in many states, nor is it required in the state of California, but Northwest will prepare a contract for you free of charge after the company is established and deliver it to you electronically. Although the state does not require it, it is recommended to create it, but you do not need to mail or electronically send this contract to the state, just keep the contract you have prepared and signed.
The approval period for an LLC company is between 2-5 business days in the state of Colorado.
What happens after your LLC company is approved in the state of Colorado?
- After the company is formed, your LLC formment formation document (called Articles of Organization) is delivered to you digitally by your agency.
- Once you receive the incorporation documents (digitally), obtain a Federal Identification Number (EIN) from the IRS. Without EIN, you cannot open a bank account or register for payment systems such as virtual POS (stripe) or paypal. You can also apply for an EIN yourself by filling out form SS4 and faxing it to the IRS. the guide here . The other option for EIN is to get a paid service. You can get EIN application service from us for $ 29. We can process it on the same day and carry out the entire process for you. this order form after company setup .
State Requirements and Taxes
Federal Taxes: All LLCs require a federal tax identification number, EIN. An EIN is basically the business version of a social security number and is used for important LLC functions. If you obtain your LLC company income from American citizens, you may be required to pay federal income tax to the state after a certain turnover.
State Requirements: In Colorado, LLCs must file an Annual Report each year, with or without income.
Sales Tax Rate in Colorado
Sales Tax in Colorado: If you sell physical products or certain types of services, you may be required to collect sales tax and then remit it to the Colorado Department of Revenue. The listed sales tax rate for the State of Colorado is currently 2.9 percent, but some counties, cities, and municipalities may impose an additional sales tax, resulting in a combined sales tax of up to 11.2 percent.
Colorado Standard Sales Tax Rate: %2.9
Maximum Local and County Tax Rate: %11.02
Obtaining Business Licenses and Permits
If you own a brick-and-mortar business in any city within the state and run a physical retail business or other type of business there, you may need certain licenses and permits depending on what you do. Fees for business licenses and permits will vary depending on what type of license you want to obtain.
Annual Reporting
Colorado LLCs must file an annual report with the Colorado Secretary of State each year, known as the Periodic Report. online on the Ministry of Foreign Affairs website . The annual report filing fee for the period is $10. Periodic reports are due for a quarterly period beginning on the first day of the month of formation, one year after the LLC is formed. For example, if you formed your LLC on June 15, 2022, the report is due every year between June 1 and August 31, 2023. You also have the option to file the report two months in advance. You can sign up to receive email notifications from the Secretary of State to alert you when the Periodic Report is due at this link
For more information about taxes, you can check out the article Taxation in America
4 Comments . New Comment
HELLO, I did it from the link you mentioned, but first it gave an error saying the money wasn't withdrawn, then it was withdrawn from the bank, now I'm stuck wondering if it was paid or not. I wonder if they will send me an email and if the agency will tell me what happened and how long it may take, thank you.
To whom did you pay? Did you do it from the state page? The agent should not have anything to do with the issue if you paid it to the state. You may have received a confirmation e-mail while registering, you can write that family as a reply if you wish.
Hello, I have an llc in Colorado and I need to send the annual report document. It is like a state tax. How can I do this? I want to do it myself. How can I do it and how long do I have?
Hello,
You can do it yourself. There are many videos on YouTube about this, you can apply it by watching one of them below.
https://youtu.be/pseMRoi2c64?si=zgYBj7XQedWpAvB4