If you’re thinking about starting a business in Colorado, you may be wondering if forming an LLC is the right move for you. After all, an LLC offers many advantages, including limited liability protection and flexibility when it comes to taxation.
So, what’s involved in forming an LLC in Colorado? Read on to find out.
Choose a business name
The first step in forming an LLC is to choose a business name. Your LLC’s name must be distinguishable from other businesses registered with the Colorado Secretary of State. You can search the state’s business database online to check for availability.
Once you’ve chosen a name, you’ll need to make sure it meets the state’s naming requirements. Your LLC’s name must:
End with “LLC,” “L.L.C.,” “Limited Liability Company,” or “Limited”
Include the words “Company,” “Co.,” “Corporation,” “Corp.,” or “Inc.”
Not include restricted words (e.g., “FBI,” “Secret Service,” etc.)
Appoint a registered agent
Every LLC in Colorado must have a registered agent. A registered agent is an individual or business entity that agrees to accept legal documents on behalf of the LLC. The registered agent must have a physical address in Colorado and be available during normal business hours.
File the Articles of Organization
Next, you’ll need to file the Articles of Organization with the Colorado Secretary of State. The Articles of Organization is a simple document that includes information about your LLC, such as the business name and registered agent.
You can file the Articles of Organization online, by mail, or in person. The filing fee is $50.
Create an operating agreement
An operating agreement is not required in Colorado, but it’s a good idea to have one. This document outlines the LLC’s ownership structure and how it will be managed. It can also help prevent disagreements among members down the road.
Get an employer identification number (EIN)
Once your LLC is formed, you’ll need to get an employer identification number (EIN) from the IRS. You can apply for an EIN online, by fax, or by mail.
There is no fee to apply for an EIN.
Comply with other business licensing requirements
Depending on the type of business you’re running, you may need to obtain other licenses and permits. For example, if you’re selling products or services that are subject to sales tax, you’ll need to register for a sales tax license.
You can find out more about business licensing requirements by contacting the Colorado Department of Regulatory Agencies.
Open a business bank account
Once you have your EIN, you can open a business bank account in your LLC’s name. This will help you keep your personal and business finances separate.
Now that you know how to form an LLC in Colorado, it’s time to get started on your new business venture!
how to form llc in colorado
In order to form an LLC in Colorado, you’ll need to file Articles of Incorporation with the Colorado Secretary of State’s office. The Articles of Incorporation must include the LLC’s name, address, and contact information; the names and addresses of the LLC’s members; and the LLC’s purpose. You will also need to pay a filing fee. Once your LLC is formed, you’ll need to obtain an Employer Identification Number (EIN) from the IRS, open a business bank account, and obtain any necessary licenses and permits. For more information on how to form an LLC in Colorado, see the Colorado Secretary of State’s website.
