Colorado Business Compliance Checklist
Colorado has a flat income tax rate but progressive employment laws — including new non-compete restrictions. This page covers everything from filing fees to sales tax to hiring laws.
$50
$25
Every year
2.9%
state base rate
No
1. Entity Formation
| LLC filing fee (Articles of Organization) | $50 |
| Corp filing fee (Articles of Incorporation) | $50 |
| Registered agent required | Yes — must have a physical address in the state |
| Publication requirement | No |
| Processing time | ~7 business days (expedited available for extra fee) |
2. Annual Maintenance
| Annual/periodic report | Every year — fee $25 |
| Franchise tax | None |
3. Sales Tax
| State base rate | 2.9% |
| Combined rate range (with local) | 2.9% – 11.2% |
| Economic nexus (out-of-state seller) | $100,000 per year |
| Marketplace facilitator law | Yes — marketplaces (Amazon, Etsy) collect on your behalf. |
Need to check nexus across multiple states? Use our Sales Tax Nexus Checker.
4. Employer Requirements
| Minimum wage | $14.81/hr (2025) |
| Paid sick leave law | Statewide mandate |
| Non-compete enforceability | Restricted — banned below income threshold; enforceable for high earners |
| Contractor classification test | Common-law (IRS) test |
Full employment law breakdown: Colorado Hiring Laws.
5. Workers' Compensation
Colorado allows private-market workers' comp insurance (competitive market). Coverage is required starting with your first employee.
Estimate your premium with our Workers' Comp Calculator.
6. State Income Tax
Flat rate: 4.4% on all income.
Compliance by Business Structure
Pick your structure to see structure-specific compliance items.
What Makes Colorado Distinctive
Compliance quirks and rules that separate Colorado from other states — worth understanding before you file.
- Colorado charges only $50 to file LLC Articles of Organization and $25 for the annual report (called a Periodic Report), among the lowest in the U.S.
- Colorado offers a Trade Name (DBA) registration through the same SOS portal.
- Colorado passed the 'Colorado Privacy Act' (CPA) effective 2023 — businesses collecting personal data from Colorado residents may face separate compliance obligations.
This is a reference, not legal advice.
State fees and rules change. Verify current values with the Colorado Secretary of State, Department of Revenue, and Department of Labor before filing. For complex situations, consult a licensed CPA or attorney.