Serving business owners since 2007
Incorporate in Colorado
Is Colorado small business friendly?
FREE business incorporation, including registered state agent
Just pay state fees, order in 5 minutes or less
Colorado’s beautiful Rocky Mountain National Park and various thriving industries make it a tempting location for many aspiring small business owners, especially those interested in starting an outdoor activity-based business.
Before starting your business in Colorado, it’s wise to get the lay of the land. Researching current business demographics can reveal valuable insights into which industries are thriving and what kinds of companies are finding success.
Our data below can be particularly helpful during the business incorporation phase, allowing you to strategically position your new venture for growth within the Colorado market.
Colorado is home to many small businesses from many different industries. As of 2023, 99.5% of all companies run in Colorado are small businesses.
Women own a large portion of the businesses in Colorado at 261,749 and co-own 37,461 firms. While this is slightly less than the 368,528 male-owned businesses, women successfully run many Colorado companies.
Veterans own 41,869 businesses and co-own 5,832 with non-veterans in Colorado, a small amount compared to the 620,539 owned by non-veterans. Despite being in the minority of small business owners, veterans can persevere and create successful businesses.
Hispanic people own 78,201 businesses in Colorado, while non-Hispanic people own 586,092. While this number may seem small, the number of Hispanic-owned companies grows yearly.
Racial minorities own 135,049 and co-own 4,613 businesses in Colorado. This group also seems small compared to the 528,778 white and non-Hispanic-owned companies, but their numbers have also steadily increased.
See the full range of features, benefits, and pricing tailored to your needs.
Incorporate in Colorado with MaxFilingsIs Colorado a good state to incorporate?
Colorado’s current population can make it a little more challenging for women and minorities to start a business properly.
However, the lack of minority-owned businesses can be an excellent opportunity to explore an untapped market. This guide will help you avoid common incorporation mistakes and build your dream business in the state of Colorado.
More credibility means more access to capital
Incorporated businesses look more professional than sole proprietorships and partnerships. This trustworthiness allows them to find interested investors more consistently. More readily available investors make it easier to grow and expand the company.
Strong limited liability protection
Choosing to incorporate adds a layer of protection between personal assets and the business’s assets. If the business encounters legal complications, incorporated business owners do not have to worry about their assets being at risk.
Tax benefits
Business owners who choose to incorporate can access more tax benefits. For example, if the business decides to incorporate as an LLC, it will not be viewed as a taxable entity. Because of this, the LLC can choose the entity it wants to be taxed as and receive that entity’s tax benefits.
Need startup cash? Explore microloans
Need startup funding? Microloans offer accessible capital to launch and grow your business. Colorado offers multiple business financing options to small businesses, including:
- DreamSpring is a program that loans money to underserved entrepreneurs.
- Colorado Enterprise Development Services provides business growth opportunities to refugees and business owners in underserved locations.
- The Colorado Enterprise Fund offers loans of up to $500,000 to small businesses and builds their resource network.
Learn more about available microloans at Colorado’s Small Business Loans website.
Many business opportunities
Colorado’s natural environment and outdoor recreational activities draw in visitors from all over the United States. Our research also shows Colorado is among the best states for obtaining small business loans. Better access to loans and a large potential customer base can help a small business start.
The state provides various programs and incentives to support local businesses:
- The Advanced Industries Investment Tax Credit program reduces investors’ risk when investing in new industries.
- The Enterprise Zone Program uses tax credits to promote the growth of businesses in economically distressed locations.
- The Just Transition Community Funding project increases economic growth by providing grants to Tier One and Tier Two Just Transition communities.
- The Rural Jump-Start Program supports businesses that locate themselves in economically distressed areas.
- The Opportunity Zone Program allows investors in low-income communities to be eligible for federal tax incentives.
- The Venture Capital Authority project focuses on funding early-stage startups outside the Front Range area.
|
Business tax climate info stats
|
|||||
|---|---|---|---|---|---|
| 27 | 4.40% | 4.40% | 2.90% | 8.30% | 7.81% |
| Overall rank | Individual income tax rate | Corporate income tax rate | State sales tax rate | Maximum local sales tax rate | Combined state & average local sales tax rate |
https://taxfoundation.org/location/colorado/
Overview of business structures in Colorado
Business structure |
Management |
Liabilities |
Taxes |
|---|---|---|---|
| Sole proprietorship | The sole owner manages everything | Personal liability for business and debts | Taxed at personal tax rate or self-employment taxes |
| Partnership | Two or more owners share management | Partners are liable for debts and liabilities (Excluding limited partners) | Partners taxes separately on their share of the business income |
| LLC | Member-managed or manager-managed | Limited liabilities for members | Pass-through taxation (profits/losses reported on personal tax returns), or can elect to be taxed as a corporation |
| S corp | Board of directors, officers, and shareholders play a role in management | Limited liability on investments | Pass-through taxation (no corporate tax, profits reported on personal tax returns) |
| C corp | Board of directors, officers, and shareholders play a role in management | Limited liability on investments | Double taxation: the corporation pays corporate taxes, and shareholders pay taxes on dividends |
| Nonprofit | The board of directors and officers play a role in management | Limited liability for directors and officers | Tax-exempt status granted by the IRS; donations may be tax-deductible |
Explore more about Colorado incorporation
Colorado offers many benefits for new businesses, but it’s essential to consider both the advantages and challenges. Learn more about incorporation in Colorado and determine if it’s right for you.
Colorado C corporation
Learn everything you need to know about creating a C corporation in Colorado. Discover why Colorado’s supportive business environment makes it an excellent state for C corp incorporation.
Colorado S corporation
Learn more about creating an S corporation in Colorado. This guide describes the steps required when forming your new business, including the benefits of choosing an S corporation.
Colorado LLC
Discover the process of creating an LLC in Colorado. This guide will show you the unique business opportunities and benefits of incorporating this business structure.
Colorado nonprofits
Learn more about forming a 501(c)(3) organization. What are the advantages and unique opportunities for making a difference in the Centennial State?
S corp or C corp? Key differences for business owners
Selecting the optimal business structure is crucial for tax efficiency and long-term growth. MaxFilings breaks down the key differences between S corps and C corps to help you make an informed decision.
Interested in other states with similar landscapes and opportunities?
Check out our guide on incorporating in Utah, another state with a thriving mountain community and business potential.
How to incorporate in Colorado
Incorporating your business involves several key steps and understanding your specific state laws. Each business structure has different steps, so be sure to understand which one you are interested in.
We recommend consulting a professional before incorporating if you have legal or tax questions.
If you’re ready to incorporate, MaxFilings offers services to help you through the process with no upfront fees.
MaxFilings can make the incorporation process simple and easy. Our incorporation team helps you file the necessary paperwork and guides you every step of the way.
Our basic incorporation package is free—you’ll only pay state fees.
You’ll also get one free year of registered agent service with no hidden costs.
MaxFilings business incorporation strives to provide the best incorporation experience without surprise fees.
Let us handle the forms, filings, and details while you keep your business moving forward.
At MaxFilings, we are committed to supporting you every step of the way.
