How To Form A Limited Liability Company In Colorado

Start an LLC in Colorado in 5 Simple Steps

Step 1: Give Your Colorado LLC a Name

Step 2: Select a Registered Agent

Step 3: File the Articles of Incorporation.

Create an Operating Agreement in Step 4

Step 5: Obtain an EIN

It is simple to form an LLC in Colorado.

Colorado LLC – To establish a Colorado LLC, you must submit the Articles of Organization with the Colorado Secretary of State online, which costs $50. The Articles of Organization are the legal documents that establish your Colorado limited liability corporation.

To get started, use our How to Start an LLC in Colorado step-by-step tutorial. In our What Is an LLC tutorial, you can learn more about LLCs and their advantages.

STEP 1: Give your Colorado LLC a name.

The first and most crucial step in organising your Colorado LLC is selecting a business name. Make certain that the name you chose conforms with Colorado naming regulations and criteria, and that it is readily searchable by prospective company customers.

1. Follow the Colorado LLC naming guidelines:

The term “limited liability company” or one of the following acronyms or phrases must be in your name: “LLC, L.L.C., ltd., limited liability co., ltd. liability company, ltd. liability co., or limited.”

Your LLC’s name cannot include terms that may be confused with a government organisation (FBI, Treasury, State Department, etc.).

Restricted terms (e.g., bank, attorney, university) may need extra legal documentation and the participation of a licenced professional, such as a doctor or lawyer, in your LLC.

2. Does the name exist in Colorado? Check the Colorado Secretary of State Business Database Search to ensure that the business name you desire isn’t currently in use.

3. Is the URL accessible? We suggest checking online to see whether your company name is accessible as a web domain. Even if you don’t intend to create a company website right away, you may wish to purchase the URL to prevent others from doing so.

STEP 2: Select a Colorado Registered Agent

A Registered Agent must be appointed for your Colorado LLC.

What exactly is a Registered Agent? A registered agent is a person or corporate organisation that receives vital tax forms, legal papers, lawsuit notices, and other government communication on your behalf. Consider your registered agent to be your company’s point of contact with the state.

Who is eligible to be a Registered Agent? A registered agent must be a full-time Colorado citizen or a firm, such as a registered agent service, that is permitted to do business in Colorado. You may choose someone from your organisation, even yourself.

STEP 3: File the Articles of Organization for your Colorado LLC.

You must submit the Articles of Organization with the Colorado Secretary of State to register your Colorado LLC. Only online applications are accepted.

Now is a good moment to decide whether your LLC will be administered by members or by managers.

From July 1, 2022 through June 30, 2023, Colorado has decreased formation filing costs to $1.

STEP 4: Draft an Operating Agreement for Your Colorado LLC

An operating agreement is not necessary in Colorado for an LLC, but it is a good idea to have one.

What exactly is an operating agreement? An operating agreement is a legal document that outlines an LLC’s ownership and running processes.

Why are operating agreements necessary? A detailed operating agreement guarantees that all firm owners are on the same page and decreases the likelihood of future disagreement.

STEP 5: Obtain an EIN for Your Colorado Limited Liability Company

What exactly is an EIN? EIN is an acronym that stands for Employer Identification Number. EINs are nine-digit numbers provided by the Internal Revenue Service (IRS) to companies to assist them be identified for tax reasons. It is basically a business’s Social Security number.

An EIN is also known as a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN) (FTIN).

Why do I need an EIN? An EIN is necessary in order to:

Establish a business bank account.

Filing and managing federal and state income taxes

Employ people

What if my single proprietorship already has an EIN? When transitioning a sole proprietorship to an LLC, the IRS demands a new EIN.

Where can I get an EIN? The IRS will provide you an EIN for free. Obtaining an EIN is a simple procedure that may be completed online or by mail.