Once you have started your LLC, you can leave all the worries about preparing documentation and obtaining licenses and permits in the past. However, every LLC or corporation in Colorado must comply with current state requirements. This includes regular annual reporting.
In Colorado, an LLC’s annual report is commonly referred to as the Periodic Report. It consists of two parts: a Franchise Tax and a Public Information Report and contains all the basic information needed to maintain tax or legal communications with the state.
In this article, we will talk about what a Periodic Report is and what its role is. We will also look at the steps Colorado LLC should take to properly file a Periodic Report with the Colorado Secretary of State and possible penalties.
A Periodic Report is the state’s yearly checkup required to keep the state’s basic business information up to date.
As in most states, submitting a Periodic Report in Colorado is a mandatory requirement for doing business. Every company, whether it is a domestic or foreign LLC, is required to report annually to the Secretary of State. Penalties ranging from fines to administrative dismissal apply for violating the state’s filing deadlines.
According to the Periodic Reporting requirements, the information an LLC in Colorado must provide includes the following:
With a Periodic Report, the state regularly updates your LLC’s record so that it always has the most up-to-date information and can contact you. For example, if your current agent resigns or you change your registered agent for another reason, you should be sure to update your Periodic Report. This helps the company stay in good standing by keeping up to date on important things like:
Moreover, the on-time submission of Periodic Reports allows potential partners, customers, or other companies to learn about your business. For this purpose, the Secretary of State’s office adds data from reports into the business database, and they are then available to interested parties.
You can also track your business status yourself to monitor your situation and reputation.
Lack of income or activity does not excuse an LLC from filing a Periodic Report.
You can learn more information on this subject on the Colorado Secretary of State’s website.
When planning your budget, it is important to consider all LLC’s costs, including categories such as:
Some of these costs are one-time, while others, such as Periodic Report, are regular. Fortunately, Colorado’s Periodic Report cost is only $10, so it won’t be a problem.
However, if you don’t file the Periodic Report on time, the company’s costs will go up. If you miss the 60 days to late-file, the LLC will have to pay a $50 late fee to the state.
According to the law, an LLC’s “Periodic Report Month” is determined by the date of creating an LLC in Colorado and occurs annually.
For example, if you have formed your LLC in May, you should file your Periodic Report the same month each year. You may also file two months before and two months after that date. Thus, the final Periodic Report submission period is 5 months.
In the case of failing to file a Periodic Report, the company may be subject to sanctions, and some of them are quite serious.
When your periodic report month passes, the state gives you two more grace months in which to file your Periodic Report, avoiding negative consequences. Otherwise, the LLC will receive “Noncompliant” status and a $50 late fee, which is required to be paid.
If the violation is still not resolved after that, the company becomes “Delinquent”. This case is highly undesirable because the options for Delinquent businesses are severely limited. For example, you cannot get a certificate of good standing or file a lawsuit. Also, the state has the right to forcibly dismiss an LLC if the owner fails to file a Periodic Report and Statement Curing Delinquency.
To fill out an LLC’s online Periodic Report, you will need to provide such information:
If you are re-submitting a Periodic Report, you do not need to fill out all the sections again. Just check to see if the information is correct. If nothing has changed, enter your name and address, and then submit the form to the Secretary of State.
To learn more about this, please, check out the step-by-step instructions.
There is only one way to file The Colorado LLC Periodic Report, and that is online. To do this, you should follow these steps:
Generally, the Secretary of State’s office processes applications immediately.
Although Online filing only is required for the Colorado Periodic Report, you may print a copy for your records if you prefer to have paper documents.
To help businesses comply, the Colorado Secretary of State sends out reminders 7 days before the reporting period.
If you want to receive reminders, you can sign up for email notifications on the Secretary of State’s website. This way you will be informed about due dates for:
However, each LLC is required to submit reports regardless of notification, and if you miss the deadline, you will be held responsible. Therefore, it is advisable to mark the right date on the calendar in advance and set a reminder. It is also possible to delegate some of the work to a professional agent who will help prepare and submit Periodic Reports.
As an LLC company owner, you are probably very busy, so it can be difficult to combine business with monitoring deadlines. The good news is that you do not have to do it yourself.
There are many LLC services available today that will not only help you with forming an LLC but also provide other useful features to make running your business easier.
One of the best companies in this field is ZenBusiness. For a reasonable fee, they will handle the registered agent’s responsibilities and your Periodic Report, including filling it out and filing it.
Moreover, if you need to draft an operating agreement, you can also rely on ZenBusiness. Unlike many competitors, this online company includes a free customized operating agreement template in every LLC creation package.
By hiring a professional service as a registered agent, you can forget about penalties for missing filing deadlines. You will also have more freedom and flexibility. A registered agent will take care of all the important official paperwork, relieving you of the need to be in the office at all times.
This is all about Colorado’s reporting requirements, associated procedures, and the consequences of a violation.
Although the process of filing Periodic Reports is not particularly difficult, you should pay enough attention to it to maintain a good reputation for your company.
For those who do not want to follow the annual reporting process personally, you can hire a good LLC service to take care of it on your behalf. That way, you can get on with developing and growing your business without the fear of missing deadlines, fines, or other unfavorable consequences.
If you have any questions, please, call the Colorado Secretary of State at 303-894-2200 Monday through Friday from 8 a.m. to 5 p.m.