How To Start An Llc In Colorado – Forming an LLC is a check box that needs to be checked. Easy, fast and hassle-free. We reviewed the 13 best LLC formation services to find out who really understands what new founders need. Our recommendation:
Once you’ve racked your brain and come up with some name ideas, you’ll want to check to see if any other Colorado businesses are using it.
How To Start An Llc In Colorado
If you search this database for several keywords and don’t provide required terms (such as LLC), you will get useful results if you try to narrow down your LLC name.
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Once you have selected a name that is available and meets Colorado’s name requirements, you can reserve it by submitting an application and paying a $25 fee. You will then receive a name order statement.
Reservations are valid for 120 days and can be extended for an additional $25 if you need more time before submitting your business incorporation application.
Registration of a name is not required when forming an LLC. However, they are useful when preparing other formation documents or specifying operational details.
If you decide to use your business name differently, you will need to register the business name. Sometimes business names are also referred to as “doing as business”, DBA or fictitious names.
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Sole proprietors use a business name when they do not want to use their legal name to do business in Colorado.
Brand names are not unique to Colorado. Thus, more than one person can register the same business name. Step 2: Appoint a registered agent
Another important step in forming an LLC is to appoint a registered agent, as you will need to include their contact information in your company registration documents.
There is no charge for this initial appointment, but if it needs to be changed after registration, the cost is $10. Don’t take this decision lightly, as a registered agent is a very important job with responsibilities such as obtaining important legal services and tax awareness for your company.
Step One Is Deciding To Start
Although the small business owner himself can be the registered agent, it is not the only option. A registered agent in Colorado can be anyone who meets the state’s requirements:
If you plan to use a licensed professional service, it must be registered as a business in the state of Colorado.
Foreign LLCs are likely to require the services of professional registered agents. Contrary to what the name may imply, foreign LLCs are US companies headquartered in another state.
And since foreign LLCs likely do not have a physical address in Colorado (at least not before incorporation), they must hire a Colorado company to act as their registered agent.
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Hiring a professional registered agent can cost anywhere from $100-$200 per year, depending on the service package you choose.
When you’re ready to form your Colorado LLC, you’ll need to file your Articles of Organization online with the Secretary of State (SOS) to begin business.
This is the legal document that creates your company. The cost to form a local Colorado LLC is $50.
Foreign LLCs wishing to register in Colorado are required to submit a Foreign Authority Statement and pay a $100 fee.
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All new LLCs must be filed online, as Colorado no longer accepts paper applications. Payments accepted via debit/credit cards Step 4: Obtain an EIN (Employer Identification Number) from the IRS
Also known as a taxpayer identification number or employer identification number (FEIN), an EIN is similar to your company’s social security number. This is a unique nine-digit identifier assigned to your business by the Internal Revenue Service (IRS).
The IRS issues EINs for federal tax purposes. However, local state tax authorities may also require this number when filing state employment taxes.
The fastest and easiest way to apply for an EIN is to use the IRS website. Although you can apply using the paper Form SS-4, it can take up to eight weeks for the IRS to process your application.
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Some businesses must register with the Department of Revenue (DOR) to obtain a sales tax license.
Colorado imposes a sales tax on the retail sale of goods, but most services are tax-exempt. So if you open a retail store, food truck, or sell something online, you’ll need to collect sales tax from your customers.
Before you make your first sale, you’ll want to obtain a sales tax permit. This license allows you to pay taxes to the government.
You can quickly apply online, pay the $16 application fee and make the required $50 deposit through My Biz Colorado.
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Sales tax licenses are valid for two years and must be renewed to maintain your business.
Although an operating agreement is not a necessary part of the state formation process, it should be developed by all LLCs. This legal document defines how your business will operate and be managed.
An operating agreement is an important business document for a multi-member LLC, because without it, you will be subject to default Colorado LLC laws that may not match or align with your intentions.
You can find templates online for free or for a small fee. If you choose to have an attorney draft a settlement, expect to spend $1,000 or more.
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Next, you’ll want to open a business bank account to start tracking your company’s finances.
To open an account, you’ll need a copy of your certified incorporation documents and an EIN if you have employees. You can also provide your ID (for example, a driver’s license).
Wells Fargo or Bank of the West are plentiful, so you won’t have trouble finding a branch. They will offer many services but will have higher fees.
Monthly account fees can be as high as $20 per month, and there may be additional fees for things like money transfers or cash deposits.
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Colorado Credit Union or Colorado Community Banks have locations throughout the state. You can get better interest rates and it’s easier to get a loan because local banks want to help local businesses.
Monthly maintenance fees can vary, some banks offer free accounts. However, check for additional fees, such as bill payment or credit card processing.
Melissa Pedigo is a US CPA with over 20 years of experience. He has worked for big 4 companies, government and internationally. Now a full-time writer, she enjoys translating complex financial and tax topics into English. When she’s not following current IRS regulations or tax laws, you’ll find her studying foreign languages or playing tennis.
Disclaimer: We do our best to educate our readers, but we do not provide legal or tax advice and our content is for general information only. If you need legal or tax advice, please contact a qualified professional. Our work is supported by branch commissions. Get quick and easy services to file your Colorado LLC quickly and accurately, starting with $0 filing fees.
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Note: Colorado has temporarily reduced the LLC filing fee to $1. The filing fee for a Colorado LLC was $50. The Colorado Secretary of State’s office said in a news release that the new rates will be in effect through the 2022-2023 fiscal year, or “until the general fund is exhausted.” According to the department’s calculations, this exemption will be valid until 2023. June 30
Is it time to turn your business dream into reality? Are you searching through many different business entities to see which one is best for you? The structure of a limited liability company (LLC) is common. It is known for its liability and tax related benefits among others.
If you want to form an LLC, Colorado is the state to do it. It is a business-friendly state whose residents are ready to convert customers. Forming a Colorado LLC for business can be somewhat challenging, almost like dealing with the state’s harsh winters. That’s why we’ve put together a step-by-step guide to guide you through the process.
Forming a Colorado LLC requires that you do so with the Colorado Secretary of State (SOS). The SOS website provides information on the process, but if it’s your first time setting up an LLC, you may have a lot of questions and wonder if you’re doing everything right.
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If this seems like a daunting task, don’t worry. Each step is described in detail on how to perform them. In addition, we will highlight some of our services that can help with Colorado LLC formation along with business management and development.
If you want to start an LLC in Colorado, you should know that this is a guide to creating a profitable local LLC. If you want to form a foreign (out of state) LLC, you must register with Colorado SOS. There is a guide on the website that will guide you through the process.
First, you need to decide on a name for your Colorado LLC. This can be a fun process because it can stimulate your creative energies. But one thing to remember is that any name can be chosen