You did it. Your Colorado LLC is officially up and running, ready to take on challenges, roll in the profits, and change the world.
There’s no doubt that this is an exciting time in your business journey. After starting your LLC, it’s easy to get carried away in all the excitement and expectations. After all, as a new business owner, you’ve got a lot on your plate.
But the state does too. They need to keep updated records on thousands of businesses so that they can effectively reach out with any important tax or legal communications down the road. How do they do it? With your cooperation, of course.
In Colorado, an LLC’s annual report consists of two parts: a Franchise Tax and a Public Information Report. Each LLC must submit these filings to the Colorado Comptroller every year to keep their information current. Unsure how to go about it? Never even heard of it? No worries at all. That’s why we’re here. Keep reading for everything you need to know.
For brevity’s sake, we’ll refer to these two combined filings as the “Annual Report” in this guide.
What is a Colorado Periodic Report? Why is it Important?
Consider a Periodic Report the state’s yearly checkup on your LLC. It’s similar to a census in that its purpose is to collect the necessary contact and structural information about each Colorado business.
Each state has its own Periodic Reporting requirements, and some don’t even require them. But in most states, you’re required to submit one per year that includes your LLC name, principal office address, registered agent information, and member/manager names and addresses. Whether you run a domestic or foreign LLC, you should plan on submitting a Periodic Report.
Don’t be intimidated, but it’s not something you want to take lightly. This is how the state updates your LLC’s record with the most recent information. They need to know how to reach you with important information about your business status, upcoming filings, taxes, and service of process.
For example, if you change your registered agent, or your current agent resigns, you’ll need to keep the state informed so they can update their contact information. Miss one of their communications and your LLC in Colorado might end up falling out of good standing or, even worse, administratively dissolved.
Moreover, keeping your information current will help other businesses and potential customers find you. When you file your Periodic Report, the Secretary of State’s office updates their business database, and anyone can access it by performing a business database search.
How Much Does the Colorado LLC Periodic Report Fee Cost?
If you’re putting together a budget for all your LLC’s costs – like formation costs, name reservation fees, and initial operating expenses – it’s important to include annual filings like this one, just so that there are no surprises.
Costs vary from state to state. Some are free while others can be several hundred dollars. Colorado’s Periodic Report is only $10, so it won’t break the bank.
Due Date and Frequency for a Periodic Report in Colorado
Just like birthdays and national holidays, your Periodic Report will come around once per year, during your LLC’s “Periodic Report Month.” This month is simply the one in which you originally formed your LLC. So, if you formed your LLC in June, your Periodic Report will be due by the end of June every year.
You can also file your Periodic Report during the two months before and two months after your periodic report month. So each year, there are five months total that you can file.
What Happens if You Don’t File?
You might be thinking, “that sounds like a pain. How bad could it be if I just fly under the radar?” The short answer: don’t try it. Failing to file your Periodic Report can yield some serious consequences.
After your periodic report month passes, you have two more months to file your Periodic Report. If you don’t file during this window, your LLC will be labeled “Noncompliant” and incur a $50 late fee. If you still haven’t filed two months after becoming noncompliant, your LLC will become “Delinquent.” Delinquent businesses cannot commence or maintain court proceedings or receive a certificate of good standing. Eventually, if you don’t file outstanding reports and a “Statement Curing Delinquency,” your LLC will be dissolved.
Now that you’re aware of the annual cycle, let’s get down to the practicals. After you’ve accessed your LLC’s online Periodic Report, you’ll need to input the following information:
- Principal street address
- Mailing address (if different than street address)
- Registered agent name and address
- Filer name and address
If your LLC is fairly consistent year to year and none of these things have changed, you can simply scroll to the bottom, enter your name and address, and submit it.
Apologies if you prefer doing business on paper, because you can only complete the Colorado Periodic Report online. Fortunately, the process is easy.
Go to this page, where you’ll access your digital form by entering your LLC’s name, trademark, trade name, ID or document number. Select your business and review the information. If there are any changes, make them, then click “Submit.”
After reviewing a digital copy of your form, you will be directed to enter payment information for a credit or debit card. Then, your $10 payment will be complete and you can print a hard copy of the report for your records if you’d like.
Does the State Send Reminders?
Reminders are always nice. They help you stay on top of your business requirements and ensure that you won’t fall out of good standing.
It’s a good idea to set your own reminders on your calendar, phone, etc. but the Colorado Secretary of State also sends notices seven days before the start of your reporting month. You can also sign up for email notifications and you’ll receive reminders about due dates, renewal dates, and more. However, every LLC is required to submit Periodic Reports, regardless of notification.
Can I Hire a Service to Handle it?
You probably have a full plate as it is, and the thought of adding one more responsibility to your to-do list might make you shudder. You’re not alone.
Plenty of other LLC owners have outsourced their reporting duties to LLC services. These companies will take the entire process off your hands, handling your Periodic Report each year. If that piques your interest, we recommend ZenBusiness, which is an experienced and trustworthy LLC company.
But their services aren’t restricted to forming an LLC or managing Periodic Reports. They can also help you form your business, draft an operating agreement, handle registered agent responsibilities, and much more, all for a reasonably low price.
If thinking about your LLC responsibilities ties your stomach in knots, let ZenBusiness take some of those worries off your plate.
There you have it, everything you need to know about Colorado’s reporting requirements. Follow this guide to a T and your LLC will be prepared to operate smoothly and in good standing long into the future.
And remember, if at any point it seems overwhelming, you’re not alone. A good LLC service like ZenBusiness (or LegalZoom) can be a valuable resource, taking care of all the little details, so you can focus on growing your business.