How to Form an LLC in Colorado
If you’re wondering how to form an LLC in Colorado, you’re on the right track to something exciting. Colorado is one of the best states for starting a business.
Its booming economy is an excellent environment for companies of all sizes. Whether you’re opening a restaurant, a tech company, or something else, there’s a business in your future!
Starting an LLC requires a few steps, but with the right guidance, you’ll breeze through them. While most steps are the same across the country, it’s always best to familiarize yourself with what’s required where you live.
Why Form an LLC?
Limited Liability Companies, or LLCs, are among the most common forms of small businesses. The reason people choose LLCs over sole proprietorships or partnerships is that it has two major advantages.
LLCs are not taxed like corporations, or even at the entity level. Instead, members will share the profits and losses on individual tax forms. This will be taxed individually as if it were a sole proprietorship (if it’s just you) or a partnership (if there are multiple members).
The other reason is in the title, limited liability. Your personal liability for the debts and other liabilities of the company is protected in the event of a lawsuit, so you are personally protected in the event something goes wrong. It’s only the company that will be liable.
If you’ve chosen the LLC as the right fit for your company, then let’s talk about how to get started!
Colorado LLC Formation
Name Your LLC
The first thing you need to do to open your LLC is choose a name. Colorado LLC laws say that your LLC must have “LLC” somewhere in the officially registered name.
It’s also important to do a quick search to make sure someone else hasn’t already used the same name for another business. You don’t want to get sued or asked to change your business name because it’s too similar to someone else’s.
Select Yourself or Someone Else as a Registered Agent
Colorado LLC filing guidelines require you to choose a Colorado LLC registered agent. If you’re moving from a sole proprietorship to an LLC, registering as the agent for your new status makes a lot of sense.
Most of the time, people give this designation to themselves, but they don’t have to. If you have someone else who can handle your LLC’s business with the state, they can be your registered agent.
File Your LLC With the Secretary of State’s Office
So how much does it cost to start an LLC in Colorado? You can expect to pay $50 for the filing fee, $39 for the Registered Agent fee, and $10 for the Annual Reporting Fee.
Note that operating permits and licenses are separate, and costs vary by your municipality. For more about them, contact a local business formation lawyer.
Get Your EIN if It’s Required
Remember that you will need an EIN when the LLC has more than one employee. An EIN is like a social security number for a business. It lets the IRS keep track of income for tax purposes.
Do Your Annual Reporting
Each year, you’ll need to file an Annual Report for your LLC in Colorado. If you don’t want to do this yourself, hire an accountant or lawyer to do it for you. Colorado LLC fees and taxes can become complicated, so it’s always helpful to have professional advisors.
Expect Online Convenience in Colorado
Colorado is one of the most advanced in allowing residents to conduct many official business transactions online. Among these is filing for an LLC. To file online, visit the Secretary of State’s website and go to “File a Business Document.”
Form Your Colorado LLC Today
Now that you’ve read about how to form an LLC in Colorado, it’s time to get started. Registering your LLC is the first step towards offering your products and services to your customers! Once your LLC gets established, you can start advertising and making money.
GoSmallBiz makes it easy to form your LLC in Colorado, with our Go Membership Plan! For just $199 plus state and federal filing fees, our experienced team will manage all the paperwork to set up your business’s legal entity. We’ve formed more than 1 million businesses across all 50 U.S. states over the last 20 years, so your business is in good hands.
And not only will we help you with the initial LLC formation, but your membership also includes annual report filing, stock certificates, a library of common business & legal forms, and operating agreement templates, plus a 15-minute consultation with a tax professional to discuss tax implications for your business.