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COGood for non-residents

Forming a company in Colorado

Colorado charges about ten dollars a year to keep an LLC in good standing and runs one of the best online filing systems in the country. For low ongoing cost, nothing beats it.

LLC, all in
$269
Corporation, all in
$264
Every year after
$10 every year
Typical timeline
Often same-day — Colorado processes online filings unusually fast.
Form in ColoradoAsk if it fits your business
The Short Version

Is Colorado right for you?

Colorado is the quiet value pick. Its periodic report costs roughly $10 a year — an order of magnitude below Wyoming, two below Delaware — and the Secretary of State’s online system is fast, modern and refreshingly easy to use.

The state has a real startup economy around Denver and Boulder, so a Colorado address carries genuine commercial weight rather than reading as a mailbox. Banks and payment providers are comfortable with it.

The trade-off is income tax. Colorado applies a flat 4.4% rate to state-sourced income, where Wyoming and Texas apply none. For a founder abroad earning outside Colorado this often does not bite, but it is the reason Colorado does not top every list despite the low fees.

Best suited to
  • Cost-conscious founders planning to keep the company for years
  • Tech and SaaS businesses wanting a credible U.S. base outside the coasts
  • Anyone who values a filing system that actually works
Worth knowing first
  • Flat 4.4% state income tax on Colorado-sourced income
  • Local sales tax rates vary sharply by city and are administered separately
  • Less privacy than Wyoming or New Mexico
Tax Snapshot

What Colorado taxes

A summary, not advice — your actual position depends on where you live, where your customers are, and how the company is treated federally.

Income tax

Flat 4.4% on Colorado-sourced income

Sales tax

2.9% state rate plus local rates that vary widely by jurisdiction

Franchise tax

None — a low periodic report fee applies instead

Good

Colorado for a non-resident founder

No residency requirement and the lowest recurring state cost of any state that still asks for a report. The online system makes remote filing painless.

Staying Compliant

What Colorado asks for every year

Formation is the easy part. These are the obligations that keep the company alive — and the ones people forget.

  1. 01

    Periodic Report

    Due in the three-month window around your formation anniversary. Roughly $10, filed online in minutes.

  2. 02

    Registered Agent

    A Colorado street address is required and must be maintained continuously.

  3. 03

    Local Sales Tax

    Colorado’s home-rule cities administer their own sales tax. If you sell into the state, expect more than one registration.

Compare

Check Colorado against another state

Switch entity type or state and the total updates instantly. The state filing fee is always included.

1 · Entity type
2 · State of formation
Total to form your company
$304LLC

All-in — our service fee and the Wyoming state filing fee are both included.

Ongoing state cost
$60 minimum every year
Typical processing
1–5 business days, then your EIN
Start My LLCSee every state side by side

State fees reviewed August 2026 and can change without notice — we confirm your exact total in writing before anything is filed. Ongoing state costs are the state’s own charges and are not marked up by us.

Colorado FAQ

Questions we get about Colorado

Is the annual cost really only about $10?

For the state periodic report, yes — it is the cheapest recurring filing in the country. Your registered agent is a separate cost, as it is everywhere.

Does the 4.4% income tax apply to me?

Only to Colorado-sourced income. A non-resident running an online business serving customers elsewhere typically has no Colorado-source income, but confirm your position with a CPA rather than assuming.

Colorado or Wyoming?

Colorado is cheaper annually and files faster; Wyoming offers more privacy and no income tax at all. If privacy is not a priority and you want the lowest running cost, Colorado is the better buy.

FormationXperts is not a law firm and does not provide legal or tax advice. Where needed, we coordinate with licensed professionals. We prepare and file your paperwork correctly; final approval and timelines are determined by the relevant government authority.

Get Started

Ready to form in Colorado?

We will confirm your exact total in writing first — and tell you if a different state would serve you better.

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