April 10, 2020
How to Start an LLC in Colorado – Short Version

How to Start an LLC in Colorado – Short Version


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

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