Looking to start a business in Colorado? Many small business owners choose to form a limited liability company (LLC) for their new businesses. An LLC is a business structure that combines the ease and flexibility of a partnership or sole proprietorship with the limited liability of a corporation.
Follow these steps to create an LLC in Colorado. For more information on how to form an LLC in any state, see our article on how to start an LLC. You can also use our online LLC formation service to register your LLC.
When forming your LLC, you'll need to pick a business name. Colorado, like other states, has laws around LLC names that you'll need to be aware of before landing on a name.
LLC name must be distinguishable. Your LLC's name must be distinguishable (different) from the names of any businesses on file with the Colorado Secretary of State (SOS). You can see whether your proposed business name is available by using the SOS's business database search. (Colo. Rev. Stat. § 7-90-601 (2024).)
LLC name must include an entity designator. Under Colorado law, your LLC name must contain the words "limited liability company" or "limited" or the abbreviations "LLC" or "L.L.C." In addition, the terms "limited" and "company" can be abbreviated to "ltd." and "co.," respectively. (Colo. Rev. Stat. § 7-90-601 (2024).)
Name reservation. You can reserve an available business name for 120 days by filing a Statement of Reservation of Name with the SOS. You can renew the name reservation. You must reserve your LLC name online. As of 2024, the filing fee to reserve a name is $25. (Colo. Rev. Stat. § 7-90-602 (2024).)
Using a trade name. You can do business under a name that's different from your LLC's true legal name listed in its articles of organization. This alternative name is sometimes called a "trade name," "DBA" (short for doing business as), "assumed name," or "fictitious business name." If you use a DBA, you must register it by filing a Statement of Trade Name of a Reporting Entity with the SOS. Read the trade names section of the Business FAQs page for more details. (Colo. Rev. Stat. §§ 7-71-101 and following (2024).)
For additional guidance on Colorado business names, you can refer to the names section of the SOS's Business FAQ page.
Every Colorado LLC must have an agent for service of process (called a "registered agent") in the the state. A registered agent is a person or business that agrees to accept legal papers on a company's behalf and forward the documents to the represented entity.
In Colorado, a registered agent must either be a:
Your registered agent must have a primary residence or usual place of business in Colorado.
(Colo. Rev. Stat. § 7-90-701 (2024).)
You can create a Colorado LLC by filing Articles of Organization with the SOS. The articles must include:
(Colo. Rev. Stat. § 7-80-204 (2024).)
You must file your Articles of Organization online with the SOS. As of 2024, the filing fee for Colorado Articles of Organization is $50.
Colorado, like most states, doesn't require an LLC to have an operating agreement. While not legally required, it's crucial to create this organizational document for your company. An operating agreement will establish the rules and procedures for how your LLC will operate. Without an agreement, your LLC will be governed by the state's default LLC laws.
You don't need to file your operating agreement with the state but you should put it in writing.
This organizational document should generally cover:
Besides providing you with greater control over how your LLC is run, an operating agreement has other important advantages. An operating agreement can help preserve your limited liability by showing that your LLC is truly a separate business entity from its owners. In addition, investors and banks typically like to see an LLC's operating agreement when determining whether to invest or loan money to the company.
For help creating an LLC operating agreement, you can use our online LLC formation service.
Other tax and regulatory requirements might apply to your LLC. For instance, your LLC might need to obtain an EIN, apply for business licenses and permits, and register for business taxes.
EIN. If your LLC has more than one member, it must obtain a federal employer identification number (EIN), even if it has no employees. If you form a single-member LLC, you must obtain an EIN for your LLC only if you'll have employees or you elect to have your LLC taxed as a corporation instead of a sole proprietorship (disregarded entity). You can obtain an EIN by completing an online EIN application on the IRS website. There's no filing fee.
Business licenses. Colorado, like most states, doesn't have a statewide general business license. But, depending on your LLC's business activities and location, your LLC might need to obtain other local and state business licenses. For local licenses, check with the clerk for the city where the LLC's primary place of business is located (or county if it's in an unincorporated area). At the state level, you could need to apply for professional or occupational licenses. For professional and occupational licenses, visit the Colorado Department of Regulatory Agencies website.
Colorado Department of Revenue. In some cases, for example, if you have employees or will be selling goods and collecting sales tax, you'll need to register with the Colorado Department of Revenue (DOR). You can register your LLC for multiple types of taxes (and licenses) through MyBizColorado. For more information on Colorado LLC tax registration, check out our article on LLC annual report and tax filing requirements in Colorado.
Here are some other questions you might have about your Colorado LLC.
If you're just starting your business or have already been operating as a sole proprietor, you should consider forming an LLC. LLCs limit an owner's personal liability for business debts and lawsuits and offer a lot of flexibility when it comes to ownership, management, and taxation of the business.
To learn more about LLCs and decide if it's the right business structure for you, see our article on LLC basics.
Below are the fees (as of 2024) you might need to pay to form your LLC in Colorado:
Filing on your own is often the cheapest option, but completing all of the forms and filing them yourself can be complicated. Hiring a lawyer is another option, but it will often cost you hundreds, if not thousands, of dollars in the process. If you'd like help completing all the filings, try our online LLC formation service.
To learn more about the costs associated with forming and running an LLC, see our article on how much it costs to form an LLC.
Yes. You must file a Periodic Report with the SOS each year. The report is due during the anniversary month of your LLC's formation. You can file your report two months before or two months after your reporting month. For example, if you formed your LLC on April 20, you can file the report between February 1 and June 30. You can sign up for email notifications from the SOS to alert you when your periodic report is due.
You must file your periodic report online through the SOS website. As of 2024, the fee to file the annual report is $25.
(Colo. Rev. Stat. § 7-90-501 (2024).)
Apart from periodic reports, your LLC will need to file and pay applicable taxes to the local, state, and federal governments. In addition, your LLC might need to obtain and periodically renew any required general or special business licenses or permits. You'll be responsible for keeping track of these maintenance requirements to keep your LLC in good standing and legally compliant.
Starting in 2024, all LLCs were previously required to submit a beneficial ownership information (BOI) report to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury. However, in March 2025, after some constitutional challenges, FinCEN revised the BOI reporting rule so that the requirement only applies to companies created outside the U.S. So, if you form your LLC within the U.S., then you no longer need to worry about the BOI reporting requirement.
You're not required to have an operating agreement in Colorado. Though, it's highly advisable to have one. An operating agreement can help protect your limited liability status, prevent financial and managerial misunderstandings among members, and ensure that you choose the rules that govern your business instead of your state's default rules.
Yes. To do business in Colorado, all LLCs organized outside of the state (called "foreign LLCs") must register with the SOS. Your foreign LLC must appoint a resident agent for service of process that's physically located in Colorado.
To register, file a Statement of Foreign Entity Authority. You must file the application online. As of 2024, the fee to register your foreign LLC in Colorado is $100.
(Colo. Rev. Stat. §§ 7-90-801 and following (2024).)
See our guide to qualifying to do business outside your state for more information.
Yes. For most formation purposes, a Colorado single-member LLC is considered the same as a multi-member LLC. The steps to form a single-member LLC in Colorado are generally the same as those listed above.
Single-member LLCs do have additional flexibility when it comes to filing a tax return. To learn more, see our article on how single-member LLCs pay federal income tax.
Maybe. In Colorado, some professionals can form what's called a "professional service company." Title 12 of Colorado's laws lays out the professionals who can form a professional service company.
To form a professional LLC, you'll need to file Articles of Organization just as you would if forming a regular LLC. Your profession might have requirements and restrictions. So you should consult with your regulating authority before you file any paperwork. You should also speak with a Colorado attorney if you have questions about your business formation options.
When you're ready to close your business, you should legally dissolve your LLC to limit your liability for lawsuits and government fees. To dissolve an LLC in Colorado, you should:
(Colo. Rev. Stat. §§ 7-80-801 and following (2024).)
You also need to close your tax accounts and take any other steps necessary to close out your business. See our article on what you need to do when closing your business for more in-depth information and guidance.
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