Colorado Business Fee Relief Act Saves Business Owners $8.435 Million
Due to program popularity, funding will be exhausted ahead of end of fiscal year
Denver, May 19, 2023 - Colorado business owners and entrepreneurs have saved nearly $8.435 Million in filing fees thanks to the 2022 Colorado Business Fee Relief Act. The fee relief program was made possible by House Bill 22-1001, one of Secretary Griswold’s 2022 legislative priorities. Because of the popularity of the program, the funds are expected to be exhausted by the end of this weekend.
“It is fantastic that this fee relief has been utilized by so many Colorado business owners and entrepreneurs. It has kept money in the pockets of hardworking Coloradans,” said Secretary Griswold. “I will always work to cut costs and red tape for Colorado businesses that are the backbone of our communities.”
Since the fee relief went into effect on July 1, 2022, more than 155,000 new LLCs and 39,000 new trade names have been registered with the Colorado Department of State. According to the latest Quarterly Economic Indicators Report published by the Secretary of State’s Office and the University of Colorado Leeds School of Business, in the first quarter of 2023 new LLC filings had increased 38.7% year-over-year and 14.4% from the prior quarter. Quarterly LLC filings totaled 48,058. Trade name filings also increased 13.7% year-over-year and 27.3% quarter-over-quarter in Q1 2023.
The Colorado Business Fee Relief Act required the state treasurer to transfer $8.435 million from the general fund to the Department of State to implement a fee credit program. With this funding, business owners and entrepreneurs across the state received a $49 credit for the formation of a new LLC and a $19 credit for registering a new trade name with the Colorado Department of State. These credits brought the respective filings down to just $1.
As part of the legislation, the reduction in filing fees under this fee relief program was to remain in place during Fiscal Year 2022-23 or until the amount of the general fund transfer was exhausted. Once the funds are exhausted, registration fees will return to $50 for the formation of a new LLC and $20 for the registration of a new trade name with the Department of State.
The $8.435 million saved in business fees by HB22-1001 was a collaboration between Colorado Secretary of State Jena Griswold, the Governor’s Office, and legislative leadership. The bill was sponsored in 2022 by Representatives Lisa Cutter and Tom Sullivan, and Senators Brittany Pettersen and Chris Kolker.
