Colorado businesses have saved more than $750,000 following a reduction in filing fees for new LLCs and trade names that took effect on July 1, according to a news release Monday from Colorado Secretary of State Jena Griswold.
The Colorado Business Fee Relief Act, passed in May, reduced new LLC registration fees from $50 to $1, and the fee for trade names from $20 to $1. Griswold said in a news conference that more than 13,000 new business registrations and 4,200 trade names were filed under the lower fee structure.
“This new law keeps money in the pockets of business owners and entrepreneurs across the state so they can continue to innovate and create businesses that provide good-paying jobs for hardworking Coloradans,” Griswold said in a release.
The reduced filing fees are part of a bigger package that includes lower business property taxes and the redirection of $600 million in federal pandemic assistance to shore up the state’s Unemployment Insurance Trust Fund. That money reduces what employers would have had to otherwise cover in surcharges and higher unemployment insurance premiums.
“This year, we passed legislation to reduce property taxes on businesses by $200 million and used $600 million in federal funds to prevent unemployment insurance cost increases on employers,” said Rep. Lisa Cutter, D-Jefferson County, sponsor of House Bill 22-1001, in a release. “From reducing the cost of starting a business to allowing retailers and restaurants to keep more of the sales tax they collect and boosting tax credits for advanced industries, we’ve worked hard to help businesses hold on to more of their hard-earned money.”
In the first quarter of this year, the state processed 34,661 new business filings, and in the second quarter of 2021, it handled 29,875 new LLC filings, according to the Quarterly Business & Economic Indicators report from the Colorado Secretary of State.
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