 Colorado |  Delaware | |
|---|---|---|
| All-in to start with usOur $40 fee with the EIN, the registered agent for the first year, and the state fee. | $135 | $195 |
| State filing fee | $50 | $110 |
| Typical approval time | Same day | 2–3 weeks (expedite available) |
| What the state asks each year | Periodic report $10 | Franchise tax $300 |
| Yearly state cost, about | $10 | $300 |
| Total over 5 years, aboutFormation, then four years of registered agent ($45) and state fees. Excludes bookkeeping and IRS filings, which are the same in every state. | $355 | $1,575 |
| State income tax on wages | Yes | Yes |
| Owners in the public formation document | Can be listed | Not listed |
| Newspaper publication after formation | No | No |
Colorado against Delaware
Advantages
- Cheaper to form: $50 state fee against $110 in Delaware.
- Cheaper to keep: about $10 a year to the state, against $300 in Delaware.
- Faster approval: usually same day, against 2–3 weeks (expedite available).
Disadvantages
- Owners can appear in the public state record.
Delaware against Colorado
Advantages
- Owners are not named in the public formation document.
- The standard for companies that will raise money from investors, with a specialised business court (the Court of Chancery).
Disadvantages
- Costs $60 more to form than Colorado.
- About $290 a year more to keep than Colorado (franchise tax $300).
- Slower approval: usually 2–3 weeks (expedite available).
Which one to choose
Choose Delaware if you plan to raise money from investors or set up a holding structure: that is what Delaware is for. For an online or service business owned from abroad, Colorado is usually the better fit, and over five years it costs about $1,220 less.
If your company will have staff, an office or a warehouse in one particular state, form it there: otherwise you register in that state anyway. Federal taxes and IRS filings are the same in every state.
General information about the states, not legal or tax advice. State fees change occasionally; the price at checkout is the price you pay.
Colorado or Delaware
Questions about this comparison
Is a Colorado or a Delaware LLC cheaper?
Colorado is cheaper to form: $135 all-in with us, against $195. Each year after, Colorado costs the state about $10 and Delaware about $300, plus $45 for the registered agent.
Which is faster, Colorado or Delaware?
Colorado usually approves an LLC in same day, Delaware in 2–3 weeks (expedite available). We file within 48 hours of payment in either state.
Can a non-US resident form an LLC in Colorado or Delaware?
Yes, in both. Neither state asks for citizenship or residency, and the registered agent we include provides the in-state address. The EIN is included without an SSN.
Another pair