How to form an LLC in Colorado. If you are interested in starting an LLC in the
Centennial state, you're in good company. Colorado has one of the top economic
climates in the country with a strong culture of entrepreneurship and access
to venture capital. Every state has slightly different requirements
for forming an LLC. Follow along closely to learn the required steps for creating
your own limited liability company in the state of Colorado. There are two ways
to form an LLC in Colorado. You can form one yourself or you can hire a service
to do it for you. Let's start by looking at the five basic requirements to form
an LLC in Colorado on your own. One: Name your LLC. You'll need to choose a company
name that complies with Colorado naming requirements and do a name search on the
Colorado Secretary of State website to make sure the name isn't already taken.
You should go ahead and register the web domain for your business website and
email as well. Two: Choose a registered agent. Colorado requires that you
nominate a registered agent for your LLC who is your business's point of contact
with the state. The registered agent can be an individual within the company
including yourself or you can hire a professional service authorized to do
business in Colorado. Three: File the articles of organization. To register
your LLC, you will need to file the articles of
organization with the state of Colorado. This can be done at the secretary of state
website. You will need to state whether your LLC will be member-managed or
manager-managed. Member-managed means all members of the LLC manage the company.
This is good for small organizations where everyone is involved in the day-to-day
operations. The second option is manager-managed where individuals are appointed
to manage the LLC. This is appropriate for large organizations where not
everyone is involved in the day-to-day affairs of the business. Four: Create an
operating agreement. You should also create an operating agreement to
establish ownership terms and member roles.
This is an internal document for reference and does not need to be filed
with the state of Colorado. This foundational document is the core
of your LLC and will help you maintain your organization as well as further
establish your LLC as a separate legal entity. Five: Obtain an EIN. Lastly you'll
need to get an employer identification number or ein from the IRS, also known as
a federal tax identification number. Your EIN is like a social security number for
your LLC and is important for taxes and banking. EINs are free of charge and
can be obtained from the IRS online or through the mail.
And with that you have formed a Colorado LLC on your own. Option Two: Hire a
Professional Service. The second way to create a Colorado LLC is to hire a
professional service to create your LLC for you. Hiring a professional service to
file your forms and act as your registered agent for the LLC will cost
you an additional fifty to one hundred and fifty dollars. However there are
several benefits to working with a pro. A hired registered agent helps with
getting your reports filed on time, helps you stay organized by keeping your
business mail separate and is available at all regular business hours to accept
official mail and legal papers on your LLC's behalf. A final and important
additional benefit of using a service is privacy. A professional service will
provide a level of privacy by withholding your personal name and home
address from the LLC's contact information. There are many reasons you
might not want your personal information easily accessible and associated with
your business. Hiring a professional LLC formation service is an easy way to
accomplish this. Now that you have seen the different requirements and ways you
can form an LLC in Colorado, visit our site and take some time to research your
options and establish a solid foundation for your business activities. Click on
the links in the description below to research the top five professional
formation services or get more information on how to form a Colorado
LLC on your own. We offer a host of free templates and tools to help accelerate
your small business from operating agreements to business plans, all free of charge.
Visit us at howtostartanlcc.com