StructureCost2026

Colorado: what each business structure costs a year

At $100,000 profit, an LLC taxed as an S corp costs $3,998 a year less than a sole proprietorship in Colorado. All figures are 2026 tax and fees.

$3,998 a year

less as an LLC taxed as an S corp than as a sole proprietorship in Colorado, at these numbers. That includes the state's pass-through entity tax election.

More settings revenue, salary, filing status, payroll costs, PTET

Colorado, 2026: $100,000 profit, single filer

StructureYearly costvs yoursTo set up
Sole proprietorship yours $25,746 $0
Itemized: $25,746
Self-employment taxirs.gov, 2026 rates$14,130
Federal income taxirs.gov, 2026 rates$8,235
State income taxtax.colorado.gov, checked Oct 24, 2026$3,381
Yearly cost$25,746
Single-member LLC $25,762 +$16 $50
Itemized: $25,762
Periodic Reportsos.state.co.us, checked Oct 24, 2026$25
Self-employment taxirs.gov, 2026 rates$14,126
Federal income taxirs.gov, 2026 rates$8,231
State income taxtax.colorado.gov, checked Oct 24, 2026$3,380
Yearly cost$25,762
LLC taxed as an S corp lowest $21,748 −$3,998 $50
Itemized: $21,748
Periodic Reportsos.state.co.us, checked Oct 24, 2026$25
Payroll tax on your salaryirs.gov, 2026 rates$7,271
State disability and paid leavefamli.colorado.gov, checked Oct 24, 2026$176
Payroll service and tax return (estimate)$1,800
Colorado pass-through entity tax, paid by the company (elected)tax.colorado.gov, checked Oct 24, 2026$2,374
Federal income taxirs.gov, 2026 rates$9,050
State income tax, after the PTET credittax.colorado.gov, checked Oct 24, 2026$1,052
Yearly cost$21,748
S corporation $21,748 −$3,998 $50
Itemized: $21,748
Periodic Reportsos.state.co.us, checked Oct 24, 2026$25
Payroll tax on your salaryirs.gov, 2026 rates$7,271
State disability and paid leavefamli.colorado.gov, checked Oct 24, 2026$176
Payroll service and tax return (estimate)$1,800
Colorado pass-through entity tax, paid by the company (elected)tax.colorado.gov, checked Oct 24, 2026$2,374
Federal income taxirs.gov, 2026 rates$9,050
State income tax, after the PTET credittax.colorado.gov, checked Oct 24, 2026$1,052
Yearly cost$21,748
C corporation $30,348 +$4,602 $50
Itemized: $30,348
Periodic Reportsos.state.co.us, checked Oct 24, 2026$25
Payroll tax on your salaryirs.gov, 2026 rates$7,271
State disability and paid leavefamli.colorado.gov, checked Oct 24, 2026$176
Payroll service and tax return (estimate)$2,000
State corporate income taxtax.colorado.gov, checked Oct 24, 2026$2,366
Federal corporate income tax (21%)irs.gov, 2026 rates$10,794
Federal income taxirs.gov, 2026 rates$4,878
State income taxtax.colorado.gov, checked Oct 24, 2026$2,838
Yearly cost$30,348
What these figures count
  • State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
  • Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
  • The 20% qualified business income deduction with its income limits and the professional-service rule.
  • Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in Colorado

Electing S corp tax treatment for an LLC starts to pay in Colorado at about $55,000 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

An S corp in Colorado can elect to pay the state's income tax itself, a pass-through entity tax of 4.4%, and the owner gets a credit for it. The company deducts it on the federal return, so it is not held to the SALT cap. The calculator uses it when it lowers the totaltax.colorado.gov.

ProfitSole propLLCLLC as S corpC corp
$30,000$5,699$5,718$7,797$8,170
$50,000$11,068$11,086$11,676$13,923
$75,000$17,853$17,872$15,071$20,873
$100,000$25,746$25,762$21,748$30,348
$150,000$43,032$43,049$36,312$50,968
$200,000$60,900$60,920$51,686$70,773
$300,000$103,937$103,944$84,853$111,776

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in Colorado

LLCCorporation
Filing to form$50Articles of Organization$50Articles of Incorporation (profit corporation)sos.state.co.us
Yearly reportPeriodic Report, $25 a yearPeriodic Report, $25 a yearsos.state.co.us
Report dueWithin two months before or after the anniversary month of formationWithin two months before or after the anniversary month of formation

Not in the calculator: Denver charges an Occupational Privilege Tax of $5.75 per month per employee withheld and $4 per month paid by the employer for each employee earning $500 or more a month; Aurora, Glendale, Greenwood Village and Sheridan have similar head taxes. Many home rule cities collect their own sales tax and business licenses.

Switching calculators for Colorado

By profession in Colorado

Questions

Is an S corp worth it in Colorado?

On these figures, from about $55,000 of profit. At $100,000 an LLC taxed as an S corp costs $21,748 a year against $25,762 for a plain LLC, $4,014 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in Colorado?

The state charges Periodic Report, $25 a year. Forming one costs $50.

Does Colorado recognise the S corp election?

Yes. The federal election carries over with no separate state form. Federal S election applies. Elective SALT parity pass-through entity tax available, not modelled.

What income tax does Colorado charge?

Colorado taxes personal income at a flat 4.4% (2026). C corporations pay 4.4% of net income.

How this page models Colorado (3)

Sources checked 2026-10-24. Each figure links to the state or IRS page it comes from.

Other states