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Every step to open an LLC in Colorado and get ready to hire, in order, with the official state page for each one. Agencies you'll deal with: Secretary of State · Department of Revenue · CDLE (Unemployment Insurance, Labor Standards, Workers' Compensation) · FAMLI Division · Colorado SecureSavings · Colorado Medical Board.
This is the most common path: a new LLC, general business, paying W-2 employees and 1099 contractors. Adding a location, forming a corporation, or in a licensed industry? Customize it and check off steps as you go.
Customize this checklistPopular Colorado business types:
Do this first. The state tax and payroll accounts ask for your registration details.
Apply free on the IRS website and get the number immediately. You'll need it for the state tax registration, a business bank account, and payroll. Opening a new location? You already have one; the same EIN works in every state.
This internal document sets out who owns what, how decisions get made, and what happens if an owner leaves. It isn't filed with the state, but banks often ask for it, and it helps protect your liability shield. Single-owner LLCs need one too.
Bring your EIN letter, filed formation documents, and operating agreement or bylaws. Keeping business and personal money separate is one of the main things that protects your personal assets.
Many businesses need a license or permit before opening, separate from registering the company. Check three levels: the state licensing board for your field, your city or county, and any federal agency that regulates your industry.
If you want S corp taxation, file IRS Form 2553. The deadline is tight: generally within 2 months and 15 days after the start of the tax year you want it to apply. See Business basics for when it makes sense.
File Articles of Organization (or the state's equivalent) online through Secretary of State online filing (sos.state.co.us/biz).
You need a registered agent with a street address in Colorado to receive legal papers and state notices. Use a registered agent service if you have no one local.
Trade names are filed with the Secretary of State online, not with counties.
Formation documents are filed online with the Secretary of State. Out-of-state entities file a Statement of Foreign Entity Authority.
In-state businesses register for a wage withholding account and a sales tax license together through MyBizColorado. Out-of-state businesses use Revenue Online, and paper Form CR0100 is also accepted.
Denver, Aurora, Glendale, Greenwood Village and Sheridan charge occupational privilege taxes (monthly per-employee head taxes). Home-rule cities may require their own business or sales tax licenses.
Applies if you sell products, or services this state taxes. Most medical care is exempt. See Business basics for sales tax.
Colorado calls it a Colorado Sales Tax License (Standard Retail License). Register with the Colorado Department of Revenue through MyBizColorado (or paper Form CR 0100) before you make your first taxable sale in Colorado. You'll collect tax from customers and send it to the state.
Give your supplier DR 5002, Declaration of Wholesale or Entity Sales Tax Exemption (replaced DR 0563, which Colorado eliminated); the MTC Uniform Resale Certificate is also accepted so you don't pay tax on inventory you'll resell. Sellers must check that the buyer's license or certificate is current and valid at the time of sale; the MTC form is accepted only for state-administered taxes, not by self-collecting home-rule cities. Keep certificates your own customers give you, too.
Out-of-state sellers must register once sales into Colorado pass $100,000 (current or previous calendar year), even with no office here.
Home-rule cities can have different rules, rates and licenses, so check each city where you sell.
Applies once you pay W-2 employees who work in this state.
Form I-9 is never mailed to the government. You keep it in your own files and show it only if ICE or the Department of Labor asks for an inspection.
Federal posters (minimum wage, EEO, FMLA if you have 50+ employees, and others) go alongside the state ones.
Register once you pay wages to employees working in Colorado. Reports and payments are usually quarterly.
Colorado FAMLI (paid family and medical leave). The 2026 premium is 0.88% of wages, split 50/50 between employer and employee. The rate drops to 0.86% on January 1, 2027.
Required at 1 or more employees (full- or part-time). Coverage is bought from private insurers such as Pinnacol Assurance. Exceptions include sole proprietors and partners, independent contractors, and some domestic and casual workers.
Report online through the State Directory of New Hires. Electronic filers submit twice a month, 12 to 16 days apart. Independent contractors who give you an SSN should also be reported.
None. Colorado has no income tax reciprocity agreements.
Colorado's wage payment rules:
$15.16 an hour.
The Healthy Families and Workplaces Act covers all employers of any size and all employees, including part-time and temporary staff. Workers earn 1 hour per 30 hours worked, up to 48 hours a year, starting day one.
Employers with 5 or more employees, in business at least 2 years and with no qualified retirement plan, must register and offer the state auto-IRA or certify an exemption. The penalty is up to $100 per eligible employee per year, capped at $5,000.
Colorado doesn't require harassment training for private employers. A written policy and a yearly refresher are still best practice.
Display the state's required labor law posters where employees can see them, along with the federal posters. Workers' comp notices come from your carrier.
On January 1, 2027, the statewide minimum wage rises to $15.71, local minimums rise, and the FAMLI premium drops to 0.86%. Update payroll before your first 2027 pay run.
Every employer must register and file quarterly FAMLI wage reports. Employers with fewer than 10 employees still remit the employee half of the premium.
The W-9 gives you the contractor's legal name and tax ID for their 1099. Check the classification first: if you control how and when they work, they may legally be an employee.
File with the IRS and send the contractor a copy by January 31. For payments made in 2026 and later, the reporting threshold is $2,000 per contractor per year (it was $600 before).
Recurring deadlines. Put these on your calendar now.
FinCEN's final rule, effective August 14, 2026, permanently exempts companies formed in the U.S. from beneficial ownership reporting. Ignore letters or emails demanding a BOI filing fee; they're a common scam. Only companies formed outside the U.S. still file.
The POWR Act requires keeping personnel records and harassment or discrimination complaints for 5 years, in a designated repository.
Keeps your business in good standing with the state. Missing it can lead to penalties or dissolution.
Colorado has no franchise tax. If the report stays unfiled the entity goes delinquent, and curing it costs $100.
File unemployment wage reports each quarter and state withholding returns on the schedule you're assigned (if the state has income tax), plus the annual W-2 reconciliation.
Monthly if you collect $1,100 or more per month, quarterly if less, and annually if $50 or less per month; returns are due the 20th. File a zero return if you had no sales; skipping it can bring penalties.
Recurring dates for Colorado and federal filings. A payroll service handles most payroll lines, but you should know they're happening.
| When | What | Filed with |
|---|---|---|
| Jan 1 | New minimum wages and FAMLI premium rate take effect | Colorado |
| Jan 31, Apr 30, Jul 31, Oct 31 | Quarterly UI wage reports and premiums due (MyUI Employer+) | Colorado |
| Jan 31, Apr 30, Jul 31, Oct 31 | Quarterly FAMLI wage reports and premiums due (My FAMLI+ Employer) | Colorado |
| End of 2nd month after anniversary month | Secretary of State Periodic Report due ($25) | Colorado |
| End of year | Give employees updated HFWA notices and posters | Colorado |
| Assigned schedule | Sales tax return (file a zero return if no sales) | Colorado |
| Jan 31 | W-2s to employees and SSA (with W-3); Form 940; 4th-quarter Form 941 | IRS / SSA |
| Jan 31 | 1099-NEC to contractors and IRS | IRS |
| 15th monthly | Federal payroll tax deposit (monthly depositors) | IRS |
| Apr 30 · Jul 31 · Oct 31 | Form 941 for the quarter | IRS |
| Jul 31 | Form 5500 or 5500-SF, if you sponsor a 401(k) (Oct 15 with Form 5558 extension) | DOL (EFAST2) |
Last verified: October 27, 2026
The Colorado state filing fee for an LLC is $50. That's the fee to form your LLC with the state. Expect other costs too, such as a registered agent service if you use one, licenses, and annual filings. See the checklist above for each step.
You need to register to collect sales tax in Colorado if you sell taxable products or services there. The state rate is 2.9%, and local taxes may add to it. Registration cost: $16 per location.
Out-of-state sellers must register once their sales into Colorado pass $100,000 a year. Having an employee or office in Colorado also creates nexus right away.
Recurring filings include: file the Periodic Report; file quarterly unemployment reports and withholding returns; file sales tax returns on time. The deadline calendar above lists the dates.
This guide organizes official requirements. It isn't legal or tax advice. Fees, forms, and deadlines change, so confirm on each linked state page before you file, and talk to an attorney or CPA about your specific situation.
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