Do We Need to File?
Any corporation doing business in Colorado or deriving income from Colorado sources must file a corporation income tax return with Colorado. If a corporation is exempt from federal income tax it is generally exempt from Colorado income tax and from filing a Colorado income tax return.
Corporations Exempt from Colorado Income Tax
Nonprofit corporations that file federal form 990 that are exempt from filing a federal income tax return are also exempt from filing a Colorado income tax return. But, if the organization has income from nonexempt functions the income is subject to federal income tax and this unrelated business taxable income is subject to Colorado income tax.
Insurance companies are exempt from Colorado income tax if they are subject to a a gross premiums levy by the State of Colorado Division of Insurance. An insurance agency is not an insurance company.