How to Form a Company in Colorado
Introduction
Starting your own business can be a daunting task, but it is also an exciting and empowering experience. There are many things to consider when starting a small business in Colorado: Do you want to form an LLC or corporation? How will you pay taxes? What type of insurance do you need? The fact that there are so many aspects to consider only makes the process more overwhelming. In this guide, we’ll walk through how to form a company in Colorado by answering some common questions about starting your own business.
Decide on the type of business you’re going to form
Colorado has a few different business structures you can choose from. LLCs and corporations are the most common, but some other options include non-profit corporations and limited partnerships (LPs).
If you’re forming a small business, an LLC is often the best choice, since it allows for more flexibility in terms of taxes and ownership than a corporation does. On the other hand, if you’re starting up a larger company or have plans to take on investors down the line, then setting up as a corporation might be your best bet.
Choose a name for your business
Choosing a name for your business is an important step in the formation process. A name should be memorable and easy to pronounce, but also not too long or too short. It should not be so similar to another company’s name that it will cause confusion among customers or clients, either. You should also avoid using names that are offensive or controversial because this could hurt your business in the long run.
Register your business with the Colorado Secretary of State
Once you have chosen the type of business entity and have completed the necessary articles of incorporation or partnership agreement, you are ready to register your company with the Colorado Secretary of State. This can be done in person or online at www.sos.state.co.us/bizreg/startup_businesses.htm (the link is external). If registering in person, bring a copy of your articles along with any additional documents they may require such as a business license if required by your city or county government, since this information will not be available on file with them yet but rather is needed by the secretary’s office for their records as well as yours (and this may apply even if there is no fee associated with obtaining said license).
You will also need to pay an annual fee once you begin operating under state law; this fee varies depending on whether or not you have employees and whether those employees are full-time or part-time employees (see page 2).
Create a business plan
Before you start the process of forming your company, it is vital that you create a business plan. Business plans are important for several reasons:
- They help you define what your business will be and what type of services or products it will offer.
- They help to determine the best location and type of facility to use for operations.
- They allow you to identify potential risks associated with starting up, improving customer satisfaction, and finding funding sources.
The creation of a business plan can take quite some time depending on how complex it is; however, there are many resources available online which can assist in this task if need be. A good example can be found here: [link](https://www-cs-students-old04-2/sites/default/files/websites/web_pages/business_plan_template-1.0 (PDF).pdf).
Choose between a standard LLC or professional LLC
A professional LLC is appropriate for professionals who operate as a business and want to protect their personal assets from liability claims. The professional LLC has fewer requirements than a standard LLC, and it is easier to form because there are no restrictions on the number of owners in your company. To form this type of limited liability company, you will need:
- Articles of Organization containing the name of your business, its principal address and registered agent, along with other information required by Colorado law (see below)
- A filing fee: $250 if you file online; $300 if you mail in your papers
The articles must be filed with: Secretary of State Corporations Division PO Box 80906 Denver CO 80809-9061
File articles of organization with the secretary of state’s office.
To start a business in Colorado, you have to file articles of organization with the secretary of state’s office. You can do this either by mail or in person. If you’re starting a sole proprietorship and don’t need to raise any capital, then it’s fairly easy to set up your company: just fill out some paperwork and pay $50 for filing fees. For LLCs, corporations and other types of businesses (such as nonprofits), there are additional steps that must be taken before they can officially open their doors—and these steps cost more money.
The process begins when you send in an application form called an “articles of organization” along with a check for $50 (or $60 if the business is going public). This gets sent off to one office within the state government known as The Department Of Secretary Of State Correspondence Unit-Secretary Of State, who then assigns an officer from another division called Corporate Records Division – Secretary Of State Correspondence Unit – Corporate Records Division.
Having a small business is exciting and empowering, but can be arduous.
Forming a business is exciting and empowering, but it can also be arduous. You have to plan ahead, be organized and patient, willing to take risks and make sacrifices. And in order for your small business to succeed financially (and emotionally), you need to take the time at the beginning of your venture to form it correctly.
Conclusion
Starting a business is exciting and empowering, but it can also be very difficult. If you’re feeling overwhelmed by the process of starting your own company, don’t despair. This guide is designed to help you through every step of forming a Colorado LLC! We’ll cover everything from choosing a name for your company and filing articles of organization with the secretary of state’s office all the way through getting an EIN number and finding legal help if necessary. We’ve even included some resources for hiring employees once things get rolling—because let’s face it: no entrepreneur starts off as an expert on hiring staff members!
