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Colorado LLC and INC Annual Filing Requirements
The formation of a new business is always governed by the laws of the state in which it is being registered. So, if you want to incorporate in Colorado then you will have to adhere to the Colorado Code for different forms of entities. Each state in the USA has different requirements when it comes to LLCs and corporations. Some of the common requirements for these entities include taxes, business licenses, and filing of specific reports annually. The Colorado LLC annual requirements may be different from that of any other state as well as other entities in this state. Hence, this guide has been created to provide insights into different aspects of annual requirements like filing of a Colorado corporation annual report, due dates, and penalties associated with these.
Colorado LLC Annual Filing Requirements
In the state of Colorado, you can choose to form a single-member or a multi-member LLC and can even register a foreign limited liability company. Once you have registered your company, it becomes an active entity. This also means that your company would be subjected to Colorado LLC annual requirements and you need to be compliant with these requirements or else you or your company may be penalized. Let’s take a look at the various Colorado LLC annual filing requirements.
Colorado LLC Annual Report (Periodic Report)
Once a new business is formed in any state in the USA, they have to fulfill certain annual requirements in the said state while being compliant with the state laws. An annual report is one such requirement, which is applicable in most states in the USA including Colorado. It is known as a periodic report. A Colorado annual report for a limited liability company is a detailed report showcasing the activities of the said company throughout the previous year. When you file a Colorado LLC annual report, it provides updated information to the Secretary of State regarding the company, like changes in ownership, change of address, and registered agent change among others.
What does it include and how to file it?
The information provided in a Colorado periodic report may vary according to the type of entity like the report for an LLC will be different from that of a domestic corporation or a foreign LLC. This information is often guided by the state business laws. If you are planning to file a Colorado LLC annual report then you will need to include the following information:
- Name of your company
- Business ID number
- The state where you formed your LLC (Domestic or foreign)
- Principal street address and mailing address
- Information pertaining to your registered agent including their full name and street address.
- Business email address.
- Full name and address of individual filing the Colorado periodic report
This periodic report or annual report has to be filed electronically through the website of the Colorado Secretary of State along with a fee of $10.
What is the due date for filing?
The Colorado periodic report is one of the most important annual requirements for a limited liability company. There is a specific due date for filing this report annually and is governed by the 2022 Colorado Code, Title 7 – Corporations and Associations, Article 90 – Colorado Corporations and Associations Act, Part 5 – Annual Reports – Statement of Person Named in Filed Document § 7-90-501 – Periodic Reports. The due date to file a Colorado LLC annual report will always be by the end of the initial registration month.
Example: If you register your LLC January 19, 2024 then the due date for the Colorado annual report will be January 31, 2025. January will be considered as your ‘Periodic Month.’ You can also file this report two months prior to the periodic month, which is by November 2024.
Do you want to file Colorado LLC Periodic Report?
Penalties if one fails to file
Since filing of an annual report is one of the mandatory Colorado LLC annual requirements; failure to file this report may lead to penalties. If a limited-liability company doesn’t file the required Periodic Report on time then the status of the LLC will be considered to be noncompliant. You will get an additional two months post the Periodic Report month for LLC annual filing Colorado along with a late fee of $50.
If you fail to file within the two months along with the late fee then you will be sent a notice stating that your LLC will be moved from ‘Noncompliant’ status to ‘Delinquent status’ if you don’t file a Colorado LLC annual report. If your LLC remains as a Noncompliant for a period of sixty days and still hasn’t filed the report then it will be considered to be ‘Delinquent’. In order to make a delinquent Colorado LLC active, you will be required to file a Statement Curing Delinquency along with a fee of $100. You will also be required to file the Colorado annual report and any owed fee or penalty.
Colorado LLC Taxes
One of the important Colorado LLC annual requirements is that of taxes. Filing your taxes on time will ensure you are in good standing with the state. The Internal Revenue Service (IRS) classifies a limited liability company as a pass-through entity by default and this means that the tax liabilities of the company will be passed on to the owners. Thus the owners of the said LLC will be required to file this on their personal tax return. Colorado has a flat income tax rate of 4.63% on the LLC profits.
Apart from this, LLC annual filing in Colorado may include other types of taxes like the Sales and Use Tax. The sales tax is applicable on retail sales of any tangible personal property in the state. There is a state sales tax as well as a sales tax imposed by the cities, counties, and certain special districts in the state. If you own a single-member LLC then you may also be subjected to self-employment tax at a rate of 15.3%. If your company has employees on wages then you will be required to file withholding taxes.
Colorado Corporation Annual Filing Requirements
If you are planning to form a business in the state of Colorado then one of the most opted for entity structures is that of a C Corporation, also known as a traditional corporation. This type of structure has many advantages including limited liability protection. Once you organize such an entity, you will need to adhere to the state laws and ensure all Colorado Corporation annual requirements are met. Let’s take a look at the annual filing requirements in the state.
Colorado Corporation Annual Report (Periodic Report)
A Colorado annual report is required by new and existing businesses in this state and is governed by the Colorado Code. This report requires entities to provide updated information to the Secretary of State, which may include changes in ownership, registered agent change or even change of the physical address. When filing a Colorado corporation annual report, you may even be required to provide additional information like total assets and paid-in capital. This report is known as a periodic report in the state of Colorado.
What does it include and how to file it?
Once you incorporate in the state of Colorado, filing a Colorado corporation annual report becomes a mandatory requirement. The information required may vary according to the entity structure and location of the entity e.g., the Colorado periodic report for a domestic entity may be different from that of a foreign corporation. Some of the basic information required in this report are:
- Name of your company
- Business ID number
- The state where you formed your LLC (Domestic or foreign)
- Principal office street address
- Principal office mailing address
- Registered agent name
- Registered agent street address
- Corporation email address for notifications
- Full name and address of individual filing the Colorado annual report
The Colorado corporation annual report has to be filed electronically through the website of the Colorado Secretary of State along with a fee of $10.
What is the due date for filing?
The periodic report is one of the most important Colorado Corporation annual requirements and has to be filed within the due date pursuant to CO Code § 7-90-501 (2022). The due date for each reporting entity will always be by the end of the initial incorporation month.
Example: If you register your Corporation February 01, 2024 then the due date for the Colorado corporation annual report will be February 28, 2025. The month of February will be considered as your ‘Periodic Month’. You can also file this report two months prior to the periodic month, which is by December 2024.
File your Colorado Corporation Periodic Report on time!
Penalties if fail to file
Each domestic or foreign corporation formed in this state has to fulfill Colorado Corporation annual requirements and this includes filing of the annual report within the stipulated time. If any entity fails to file the periodic report within the due date then they will be penalized. Such a corporation will then be considered to be noncompliant and you will get an additional two months post the periodic report month for filing the report with a late fee of $50.
If you fail to file within the two additional months then the office of the Secretary of State will send a notice stating that your company will be moved from being a ‘Noncompliant’ to being ‘Delinquent’. As a Noncompliant, if you are still unable to file the Colorado corporation annual report within the allotted period of sixty days then your company will be considered to be ‘Delinquent’. Once your company becomes delinquent, you will have to file a Statement Curing Delinquency along with a fee of $100 to bring your company back to active status. You will also be required to file the pending Colorado periodic report along with any fee owed or penalty.
Colorado Corporation Taxes
One of the important Colorado Corporation annual requirements is that of state taxes. It is crucial that you file your taxes on time as failure to file can affect the good standing status you enjoy with the state. The most important of all taxes is the corporate income tax and the rate for the same is a flat 4.40 percent. The second most important form of tax is the sales and use tax. The state sales tax rate across Colorado is 2.90 percent with a maximum local sales tax rate of 8.30 percent. It is important to note that certain counties and cities have their own sales and use tax structure. The tax rate can vary according to the product being sold or services offered like the tax rate for Regional Transport District (RTD) sales tax rate is 1 percent according to Metro Denver Economic Development. Apart from this, a corporation may be required to file withholding taxes.
Need any Assistance in Filing Colorado LLC or INC Annual Reports (Periodic Reports)?
The Colorado Corporation annual requirements or that of an LLC entail filing of annual reports as well as taxes. Sometimes business license renewals are also considered a part of Corporation or LLC annual filing in Colorado. If you have started a new business or are planning to register one then it is important to ensure fulfillment of state annual requirements in order to operate without any difficulties.
IncParadise as your registered agent in Colorado can assist you with filing of the LLC or Corporation periodic reports. We are also an expert in new business formation services and can help you with LLC formation or incorporation in Colorado. We also offer many additional services like EIN, and foreign qualification among others.