 Colorado |  Texas | |
|---|---|---|
| All-in to start with usOur $40 fee with the EIN, the registered agent for the first year, and the state fee. | $135 | $392 |
| State filing fee | $50 | $307 |
| Typical approval time | Same day | 3–5 business days |
| What the state asks each year | Periodic report $10 | Franchise tax report (no tax under threshold) |
| Yearly state cost, about | $10 | $0 |
| 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 | $572 |
| State income tax on wages | Yes | None |
| Owners in the public formation document | Can be listed | Can be listed |
| Newspaper publication after formation | No | No |
Colorado against Texas
Advantages
- Cheaper to form: $50 state fee against $307 in Texas.
- Faster approval: usually same day, against 3–5 business days.
Disadvantages
- About $10 a year more to keep than Texas (periodic report $10).
- Has a state income tax, though it normally only reaches income connected to the state.
Texas against Colorado
Advantages
- No yearly state fee (franchise tax report (no tax under threshold)), against about $10 a year in Colorado.
- No state income tax on wages.
- A large economy, and a name that reads well on an invoice.
Disadvantages
- Costs $257 more to form than Colorado.
- Slower approval: usually 3–5 business days.
Which one to choose
Colorado comes out ahead on both cost and speed: about $217 less over five years, and usually approved in same day.
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 Texas
Questions about this comparison
Is a Colorado or a Texas LLC cheaper?
Colorado is cheaper to form: $135 all-in with us, against $392. Each year after, Colorado costs the state about $10 and Texas about $0, plus $45 for the registered agent.
Which is faster, Colorado or Texas?
Colorado usually approves an LLC in same day, Texas in 3–5 business days. We file within 48 hours of payment in either state.
Can a non-US resident form an LLC in Colorado or Texas?
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