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 is known as a Periodic Report, and every LLC must file one yearly to keep the state updated regarding some basic information. 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.
If you’d like to hand off this responsibility to save time and focus on running your business, affordable LLC services are a great solution. Not only will they form your business in the first place, but they’ll also manage ongoing requirements like ongoing report filing. Once you're ready to lock it down, have ZenBusiness file all the paperwork.
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 annual report 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, being 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 the two months prior to and the two months after 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 August every year, and April 1 would be the earliest you could file it.
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 or phone, 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. Obviously, every LLC is required to submit Periodic Reports, regardless of notification status.
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.
Frequently Asked Questions
About Filing the Colorado LLC Periodic Report
Should I use a periodic report service, hire an attorney, or prepare and file my own reports?
This question largely comes down to personal preferences, but we do have some general insights. The DIY route can be quite a bit of work, as you’ll need to keep track of your due dates and complete the entire report on your own with no assistance. As for hiring an attorney, this can be prohibitively expensive for many businesses, as a lawyer can charge hundreds or even thousands of dollars to prepare and file your Periodic Reports.
You can think of business services companies as a middle ground between these options. While most of these companies charge a fee to prepare and file your Periodic Reports, that fee will be significantly less expensive than an attorney’s fee. At the same time, you still aren’t going it alone. Instead, you have an experienced professional guiding you through the entire process.
I’ve heard the most about LegalZoom. Are they the best annual report service?
LegalZoom is the most well-known of all business services companies, thanks to its long track record and extensive advertising campaigns. That said, all of that brand power comes at a cost, as LegalZoom’s pricing and features don’t always compare advantageously to its competitors. While we do appreciate LegalZoom’s Periodic Report filing service, it isn’t our top choice.
When is my Periodic Report due each year?
The Periodic Report filing window for each Colorado LLC is five months long, and it revolves around your LLC’s anniversary month. You can file your report anytime from two months before your anniversary month to two months afterward. So, for instance, an LLC formed in February can file its Periodic Reports between December 1 and April 30.
Does Colorado require LLCs to file initial reports?
In some states, LLCs are also required to file initial reports. These reports are typically quite similar to annual reports, with the difference being that an initial report either accompanies your formation documents or follows their filing within a couple of months.
In Colorado, LLCs do not need to submit an initial version of the Periodic Report, as all relevant information is included in the Articles of Organization.
What if I need more time to complete my Periodic Report?
Colorado does not offer extensions for late Periodic Reports. However, the state does have a sort of built-in grace period. If you don’t submit a report during your five-month window, the state gives you another two months to get your act together before finally labeling your LLC as delinquent.