How to Form an LLC in Colorado

Introduction

You’ve decided to form an LLC, and you’re ready to get started. This guide will walk you through the steps of forming an LLC in Colorado.

How to Form an LLC in Colorado

An LLC, or Limited Liability Company, is a popular business structure for startups that want to keep personal assets separate from the company’s. As an owner of an LLC, you can pass on your ownership in the company should something happen to you. An LLC can be formed in any state and it doesn’t matter where you live; however, Colorado has specific requirements for forming an LLC which we’ll get into later.

First things first: what is an LLC? Essentially, it’s a hybrid between being incorporated and being self-employed as a sole proprietor or partnership. An owner of an LLC has limited liability protection like a corporation but has more flexibility than incorporating because it isn’t taxed as an entity by itself (like when corporations file their own taxes separately). A corporation still has restrictions on how many people can own shares while an LLC has no such limits and allows unlimited memberships (owners).

Choose a name for your LLC.

You’ll need to choose a name for your LLC. Make sure you can use the name and that it isn’t misleading, confusing or deceptive. Your business name cannot include:

• The words “bank,” “insurance” or “trust.”
• Any word that could be confused with the name of an existing business entity in Colorado. This includes businesses that are no longer in operation.
• A trade or service mark registered with the U.S. Patent and Trademark Office (USPTO).

Your new LLC’s name can’t be identical to one already on file with the Secretary of State’s office—this would cause confusion among consumers and businesses alike!

File Articles of Organization with the Colorado Secretary of State.

The next step is to create and file Articles of Organization with the Colorado Secretary of State. Forming an LLC can be completed using one of two methods: (1) filing Articles of Organization online or (2) mailing in a completed form with payment. If you choose to file online, you will need to have a credit card available to pay a $15 filing fee. If you choose not to file online, you can complete your forms at home, print them out and then mail them into the Secretary of State’s office along with your payment.

The most important piece of information contained within your Articles is the name under which you will do business (also known as “doing business as” or DBA). This must be identical to either: (1) your domestic limited liability company’s legal name—the name listed on its articles; or (2) if there is no such listing, then any other name used by that domestic limited liability company in its regular course of business for more than one year prior to January 1st .

Designate an agent for service of process in Colorado.

An agent for service of process is someone who agrees to accept legal documents on behalf of your LLC, like a summons and complaint in a lawsuit.

The Colorado Secretary of State gives you the option to designate an agent for service of process when you form your LLC, so this isn’t something you need to worry about until later in the process. For now, just know that it’s important and don’t forget about it!

To designate an agent for service of process:

Create an operating agreement for your LLC.

An operating agreement is a document that outlines the internal procedures and policies of your LLC. It should include:

• How you will allocate profits and losses.
• The roles of members, managers, officers, and employees.
• How to handle disputes within the company.

You don’t have to hire a lawyer or pay for expensive software to create an operating agreement for your LLC—you can easily do it yourself using Google Docs or any other word processing program that allows you to format text as well as adding images (such as Microsoft Word).

File an annual report.

After you form your LLC, you must file an annual report with the Colorado Secretary of State every year. The filing deadline is May 31st each year, and the filing fee is $20.

The annual report must include:

• A list of all members’ names, addresses and social security numbers (if applicable).
• Your company’s name and address.
• Information about your business structure, such as its type (limited liability company), whether it’s managed by one person or a group of people, etc..
• Whether any additional fees are due to Colorado Business & Corporation Section or any other government agency in addition to what was paid initially when forming your LLC.

Takeaway:

• Takeaway:
• If you want to form an LLC in Colorado and haven’t been following along, catch up on the previous sections!
• You can find all of the forms for your state at this website.

Conclusion

We hope that this article has provided you with a clear understanding of how to form an LLC in Colorado. If you have any questions, contact us today!