$1 Dollar Days in Colorado

By Michael Banner - Dec 31, 2012     

 

What do the following have in common?

  • - Cup of coffee (ok, maybe not from Starbucks),
  • - Quart of milk,
  • - 1/3rd of a gallon of gas,
  • - Package of gum, 
  • - US Corporation 

They all cost a Buck!

 

As of December 1st 2012, the Secretary of State of Colorado is charging only $1 for all new and ongoing INC & LLC filings.  This means that if you form a new Corporation or limited liability company in Colorado today, the state fee for the filing is only $1.00.  Prior to this “Fee Holiday”, the state’s fees were a still low $50 for INC or LLC filings.  With the fee decrease, Colorado is absolutely the lowest cost state in which to form a new Corporation or LLC.

 

We’ll form your Colorado INC or LLC for $32 TOTAL

(includes state fees & all SmallBiZ fees)

 

Choose “Build Your Own” Package, State Fees ($1) + SmallBiZ Filing Service ($25) + Standard Shipping & Handling ($6).

 

CLICK HERE

(for more info or to order)

 

ADD Registered Agent Service $29 (if you cannot provide one)

 

 

In addition to new filings, all other filings have been reduced to $1. 

Filing

Previous

Fee

New

Fee

Periodic Report

$10

$1

Articles of Organization or Incorporation

$50

$1

Amend Articles of Organization or Incorporation

$25

$1

Amend and Restate Articles of Organization or Incorporation

$25

$1

Conversion of Entity Statements

$50

$1

Combined Conversions

$100

$1

Dissolve or Withdraw an Entity

$25

$1

Reinstatements

$100

$1

Statement of Change (online)

$10

$1

Statement of Correction (online)

$10

$1

Reservation of Name

$25

$1

Reserved Name Transfer

$25

$1

Reserved Name Renewal

$25

$1

Trade Name Statement

$20

$1

Trade Name Renewal

$5

$1

Trade Name Withdrawal

$10

$1

Trademark Registration

$30

$1

Trademark Transfer

$10

$1

Trademark Renewal

$10

$1

Trademark Withdrawal

$10

$1

Foreign Entity Authority Statement

$100

$1

Foreign Entity Authority Withdrawal

$125

$1

Statement of Registration of True Name

$25

$1

Renewal of Registration of True Name

$25

$1

 

         

When we asked how long this Fee Holiday was going to continue, we were told that the Secretary of State, Scott Gessler will “review the reduction on a monthly basis to ensure the office is able to meet its budgetary obligations.”  So, this change is NOT indefinite.  As the Secretary of State’s News Release says, the office “takes no state taxpayer dollars.  Its operations are funded primarily by filing fees from business and non-profits.”

 

So why charge so little?

The answer is simple:  TAXES!

If an entity (foreign or domestic) is registered in Colorado, then any income coming from Colorado sources is subject to a 4.63% tax.

 

When does it make sense to form in Colorado?

If your business is not located in Colorado, but you want to consider Colorado as your corporate home, when does it make sense to form in Colorado?  Only if the entity’s income does NOT come from Colorado, so that there is no tax due to Colorado.  Here are som examples where a Colorado LLC might make sense:

 

LLC owns real estate in another state

 

LLC owns runs an website*

 

LLC owns a trademark*

 

LLC owns royalty payments*

 

LLC owns domain names for future resale

 

LLC owns and leases equipment*

* Again, if any of the income is sourced from Colorado, the entity will have to pay taxes on that Colorado income, at the current tax rate.  However, if not, there is no state less expensive than Colorado.

 

What are you waiting for now?  Most likely the cup of coffee will go up in price, but so too will Colorado’s state fees. 

 

UPDATE  as of 2/26/13

Colorado has since raised its fees back to what it was previously.  So, a new INC or LLC filing is now $50. 

 

Related Articles & Pages

 

What is Foreign Authority?

 

Colorado SmallBiZ Page (coming soon)

 

Colorado State Filing Requirements

 

About Michael Banner
  CEO & Founder of SmallBiZ.com, created over seventeen years ago to help small business owners simplify the process of starting & managing their small businesses. SmallBiZ.com now serves over 10,000 businesses per year with various filing and subscription services; in addition to the 1000's of daily visitors to www.smallbiz.com, accessing free services, help pages, & educational videos & webinars.


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