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A domestic corporation (including a Subchapter S corporation) must file an income tax return whether it has taxable income or not, unless it's exempt from filing under section 501.
An S CORPORATION must file Form 106 for any year it is doing business in Colorado. Doing business in a state is defined as having income arising from the activity of one or more employees located in the state; or arising from the fact that real or personal property is located in the state for business purposes.
Colorado has a 4.40 percent corporate income tax rate. There are jurisdictions that collect local income taxes. Colorado also has a 2.90 percent state sales tax rate, a max local sales tax rate of 8.30 percent, and an average combined state and local sales tax rate of 7.78 percent.
In Colorado, on the other hand, as a single-member LLC, you are only required to file federal income tax as the state does not impose a state income tax.
Colorado imposes a tax on the income of any C corporation that is doing business in Colorado. The tax applies generally to every C corporation that is organized or commercially domiciled in Colorado and to every C corporation that has property, payroll, or sales in Colorado in excess of certain thresholds.
Mailing to Colorado Department of Revenue, PO Box 17087, Denver, CO 80217-0087. Visiting one of several Taxpayer Service Locations around the state.
Filing Requirements Any corporation, partnership, joint venture, common trust fund, limited association, pool or working agreement, limited liability company or any other combination of persons or interests, that is required to file a federal income tax return, must file a Colorado Income Tax Return.
No matter what kind of business entity you have, including a corporation, you'll need to provide the following documentation: Estimated tax payment receipts. Year-end balance sheet and profit & loss statement. Year-end business bank account and investment account statements.