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How to Set Up a Colorado LLC on Your Own

Technically speaking, you don’t have to use an LLC formation service like ZenBusiness or LegalZoom. These services are incredibly helpful, but you can save money by completing the process yourself.

You can read our complete guide to DIY an LLC setup in Colorado, but here’s a quick look at the process:

Choose a business name

Every LLC in Colorado needs a name that’s memorable and gives potential clients a good idea of what goods or services are available. The name also needs to be unique — both for legal reasons and so your business stands out from the competition.

Appoint a CO registered agent

As we’ve mentioned in this guide, every LLC needs an agent who can accept service of process on your behalf. In all states, you can act as your own registered agent as long as you have a physical address in the state. Colorado is one of the only states that adds an age requirement, as you must be at least 18 to serve as a registered agent in this state. That said, we generally recommend that you appoint someone else (like an online service) to act as your agent.

File the Articles of Organization

This document, once filled out and filed, officially forms your business in the state of Colorado. You’ll need to provide some important information, including your contact information, your business address, signatures for your LLC’s members, and more. Colorado has a $50 filing fee.

Setting up the LLC is as easy as 1-2-3; it’s the maintenance requirements that are a bit more complicated:

Register for and pay taxes

If you have employees, you’ll need to get an Employer Identification Number from the IRS. Then there are state-specific taxes, too. Colorado charges the same income tax rate for both businesses and individuals: 4.63%. You’ll also need to account for sales taxes (2.9%) and other miscellaneous taxes. More information can be found at the Colorado Department of Revenue.

Get licenses and permits

There’s no general state business license in Colorado, but that doesn’t mean you won’t need to get professional licenses, such as those indexed by the Department of Regulatory Agencies.

Create an operating agreement

Even single-member LLCs should create a “master document” that sets out how the business will operate, both now and in the future.

File your periodic report

Each year, your LLC will need to file a periodic report to update the state about the standing of your business. Colorado has a $10 filing fee for this document.

Obtain business insurance

Every business with employees needs to maintain workers’ compensation insurance and a commercial vehicle policy for company-owned vehicles. You may also want to get a general business liability policy, too.

Get a business bank account

You should sign up for a business bank account so you can write checks and make purchases in the name of the business instead of pulling from your personal accounts (a legal no-no).

This is just the tip of the iceberg, though. For more detailed guidance, we recommend contacting an attorney or checking out the full Colorado LLC Formation Guide.

What Is a Colorado LLC?

LLCs are formal legal entities that are typically taxed similarly to sole proprietorships and general partnerships, in that the owners include any company profits or losses into their personal returns — the LLC itself does not owe income taxes. For more a more in-depth description see: What is an LLC?

The Total Cost of Forming and Maintaining an LLC in Colorado

In addition to the costs of a business formation service or hiring an attorney (which are optional, as we’ve discussed), there are quite a few other required and optional expenses when forming and maintaining a Colorado business. You cannot form an LLC in Colorado without filing the Articles of Organization, the document that officially registers the business within the state. This filing costs $50 to submit.

Your LLC will also need to file the Periodic Report every year. Called the Annual Report in most other states, this report keeps the state up-to-date about certain vital but basic business information. It costs just $10 to submit. Read more about Colorado costs – Colorado LLC costs.