When you incorporate a business in Colorado, you’re creating an official entity separate from yourself. Your business can sign contracts, own property, and take on debts in its own name. That legal separation protects your personal assets while laying out how the business will exist and operate.

Colorado makes incorporation simple and fast with an online system that handles filing, paying fees, and more. The choices you make early, such as what kind of business to form and how to share ownership, affect how your business will run.

Below, we’ll explain how to incorporate in Colorado, what it costs, and what to do to keep your new business in good standing in the Centennial State.

What’s in this article?

• What does it mean to incorporate a business in Colorado?
  
• What are the advantages of forming a corporation in Colorado?
  
• What are the legal requirements to incorporate in Colorado?
  
• How much does it cost to incorporate in Colorado?
  
• How Stripe Atlas can help
  

What does it mean to incorporate a business in Colorado?

Incorporating in Colorado means giving your business a formal legal identity as a corporation, separate from you as an individual. Though “incorporating” specifically refers to forming a corporation, the term is sometimes used to refer to limited liability companies (LLCs).

Once incorporated, your business exists on its own: it can own property, sign contracts, borrow money, and continue operating even if ownership changes. That separation protects your personal assets from business debts or lawsuits—as long as you keep your personal and corporate finances distinct.

Incorporation gives your business formal standing and credibility, and it shows customers, partners, and investors that your business is organized, accountable, and built to operate under state law.

Colorado law lets you choose from several corporation types, each with its own structure and tax treatment:

• C corporation (C corp): This is the standard for-profit business with shareholders and officers. Profits are taxed once at the corporate level and again when distributed as dividends.

• S corporation (S corp): This is similar to a C corp but has a pass-through tax status so profits flow to owners’ personal income tax returns.

• Nonprofit corporation: These are organized for charitable, educational, or public benefit purposes. Profits are reinvested in the mission.

• Professional corporation (PC): These are reserved for licensed professions such as law, medicine, or accounting.

• Public benefit corporation (PBC): This is a for-profit business with a legally defined social or environmental mission.

Whichever structure you choose, incorporation in Colorado takes place through the secretary of state’s online filing system.

What are the advantages of forming a corporation in Colorado?

There are many advantages to starting and growing a business in Colorado. Incorporating in the state gives you the structural protection of a corporation and the practical advantages of a state that values efficiency, low costs, and innovation.

• Modern filing system: The incorporation process is handled online through the Colorado secretary of state. Filings are typically processed immediately, so you don’t have to wait for approvals in the mail. The state’s corporate laws are straightforward: you can form a corporation with just one person serving as the director, officer, and shareholder, which keeps things simple for solo founders and small teams.

• Low taxes and affordable fees: Colorado’s 4.4% corporate income tax is among the lowest in the US. The cost to incorporate is $50, and filing an annual report (or Periodic Report) costs $25.

• Central and connected location: Colorado’s geography can be advantageous for businesses. The state’s central location makes shipping and logistics easier for businesses with customers nationwide. Denver’s international airport and major highway networks connect businesses to suppliers and clients quickly and efficiently.

• Strong business environment: Colorado’s economy is fueled by tech, aerospace, renewable energy, outdoor recreation, and professional services. Colorado has the third most concentrated tech industry economy in the nation, and the state is known for its collaborative startup culture. You’ll find strong local networks, mentorship programs, and access to venture capital, especially in Denver and Boulder.

• Supportive policy environment: The state actively encourages new businesses through a range of grants, tax credits, and incentive programs. Compliance is clear and accessible.

Incorporating in Colorado gives you a solid legal foundation and connects you to a business environment that’s efficient, affordable, and built to promote growth.

What are the legal requirements to incorporate in Colorado?

Forming a business in Colorado can be simple, but you need to follow a few key rules to make it official and keep it compliant. Here’s what Colorado requires, including choosing your business type and name, filing the right paperwork, and keeping your registration active each year:

1. Choose your business structure

Decide whether you’re forming an LLC, a corporation, or another type of entity. This choice affects how you’re taxed, how ownership is structured, and what compliance rules you’ll follow. If you plan to seek outside investors, a C corp might make sense. For flexibility and simpler taxes, many small businesses start as LLCs.

2. Choose a compliant name

Your business name must be distinguishable from any other registered business in Colorado. The state provides a free online name search so you can confirm availability before filing. The name must include a designator such as Corporation, Incorporated, or Company or an abbreviation such as Corp., Inc., or Ltd. for corporations or LLC for limited liability companies. You can reserve a name for 120 days if you’re not ready to file.

3. Appoint a registered agent

Every Colorado corporation or LLC must have a registered agent with a physical Colorado address (no PO Boxes). This person or service will receive official mail and legal notices for your business. You can act as your own agent if you have a Colorado address and are available during business hours, or you can hire a professional service for privacy and convenience.

4. File formation documents

To create your entity, you’ll submit articles of incorporation or articles of organization (for an LLC) through the secretary of state’s online filing system. The form requires:

• Your business name and principal office address

• The registered agent’s name and address

• The name and address of the incorporator or organizer

• The number of authorized shares (for corporations)

Processing is immediate upon payment. You’ll receive a confirmation email and entity ID number confirming your business’s incorporation in Colorado.

5. Maintain compliance

Corporations must have at least one director and maintain internal records, including bylaws and meeting minutes. Each year, every corporation or LLC in Colorado must file a Periodic Report, a simple online update confirming your business’s information. Staying current on this paperwork keeps your business in good standing and your liability protections intact.

How much does it cost to incorporate in Colorado?

Colorado keeps its business fees low and the incorporation process straightforward, so businesses can typically get started for under $100.

Here’s what you should budget for:

• State filing fee: Filing articles of incorporation or articles of organization cost $50, paid online when you submit through the secretary of state’s website.

• Registered agent: Acting as your own agent is free. If you want privacy or don’t have a Colorado address, you can hire a professional service for $100–$300 per year.

• Annual report: Every year, you’ll file a Periodic Report confirming your business’s details. The fee is $25, and there is a $50 late penalty if you miss the filing window.

• Other optional filings: Reserving a business name costs $25, filing a DBA (Doing Business As) costs $20, and amending your articles is $25.

How Stripe Atlas can help

Stripe Atlas sets up your company’s legal foundations so you can fundraise, open a bank account, and accept payments within two business days from anywhere in the world.

Join 75K+ companies incorporated using Atlas, including startups backed by top investors like Y Combinator, a16z, and General Catalyst.

Applying to Atlas

Applying to form a company with Atlas takes less than 10 minutes. You’ll choose your company structure, instantly confirm whether your company name is available, and add up to four cofounders. You’ll also decide how to split equity, reserve a pool of equity for future investors and employees, appoint officers, and then e-sign all your documents. Any cofounders will receive emails inviting them to e-sign their documents, too.

Accepting payments and banking before your EIN arrives

After forming your company, Atlas files for your Employer Identification Number (EIN). Founders with a US Social Security number, address, and cell phone number are eligible for IRS expedited processing, while others will receive standard processing, which can take a little longer. Additionally, Atlas enables pre-EIN payments and banking, so you can start accepting payments and making transactions before your EIN arrives.

Cashless founder stock purchase

Founders can purchase initial shares using their intellectual property (e.g., copyrights or patents) instead of cash, with proof of purchase stored in your Atlas Dashboard. Your IP must be valued at $100 or less to use this feature; if you own IP above that value, consult a lawyer before proceeding.

Automatic 83(b) tax election filing

Founders can file an 83(b) tax election to reduce personal income taxes. Atlas will file it for you—whether you are a US or non-US founder—with USPS Certified Mail and tracking. You’ll receive a signed 83(b) election and proof of filing directly in your Stripe Dashboard.

World-class company legal documents

Atlas provides all the legal documents you need to start running your company. Atlas C corp documents are built in collaboration with Cooley, one of the world’s leading venture capital law firms. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects like ownership structure, equity distribution, and tax compliance.

A free year of Stripe Payments, plus $50K in partner credits and discounts

Atlas collaborates with top-tier partners to give founders exclusive discounts and credits. These include discounts on essential tools for engineering, tax, finance, compliance, and operations from industry leaders like AWS, Carta, and Perplexity. We also provide you with your required Delaware registered agent for free in your first year. Plus, as an Atlas user, you’ll access additional Stripe benefits, including up to a year of free payment processing for up to $100K in payments volume.