How to Start LLC in Colorado Step-by-Step Guide
Starting a Colorado LLC, step-by-step
Here are the steps to forming an LLC in Colorado:
- Choose an LLC Name
- Select a Registered Agent
- File the Articles of organization
- Create an Operating Agreement
- Get an EIN
If you want to form your LLC yourself, follow our comprehensive guide below at no cost.
How much does it cost to start a Colorado LLC?
To establish an LLC in Colorado, you need to pay a starting fee of $50.
After that, there's a yearly maintenance fee of $10.
How long does it take to get an LLC in Colorado?
If you file online, it takes about 2-3 business days for approval. If you choose to file by mail, it may take around 20 days to process.
For further details on LLC expenses, Explore the specifics of LLC costs in Colorado.
See "How Long Does It Take to Form an LLC in Colorado" to find out how long it will take to get your LLC approved and to make sure there are no delays.
Need to save time?
Consider hiring a professional to set up your LLC: Northwest Registered Agent offers LLC formation services starting at $39 plus the state fee.
(Find out why Northwest is the top choice for LLC formation)
Here are the steps to forming an LLC in Colorado
1. Search for your Limited Liability Company (LLC) Name
Take the following actions to make sure your Colorado LLC name is accessible and complies with state laws:
First, search your business name. Entity Search tool to ensure it's unique and not already in use.
This is necessary because two businesses in the state cannot share the same name.
Second, check domain availability for an online presence Select a name that is memorable to the customer and best suited for the brand.
We'll explore the specifics of naming an LLC in Colorado in greater detail.
How do I check if my desired LLC name is available?
You can check the availability of your desired LLC name by searching the Colorado Secretary of State's online.
What are the naming requirements for Colorado LLC?
The name must include "Limited Liability Company," "LLC," or "L.L.C." It must be distinguishable from other business names registered in Colorado and should not contain restricted words without approval.
Can I reserve a name for my LLC?
You can reserve a name for up to 120 days by filing a Name Reservation application with a $25 cost.
2. Find a Registered Agent in Colorado
The next step is to select the Colorado Registered Agent.
Your LLC's registered agent in Colorado may be an individual or group designated to receive official notices and legal communications on behalf of your LLC. They must reside in the state at their physical address in order to perform this duty effectively.
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Who is eligible to serve as an LLC Registered Agent?
Your LLC's registered agent can be you.
- A trusted friend or family member
- A professional Registered Agent Service
- You
They must have a physical address in Colorado, as PO Boxes are not acceptable.
The Registered Agent's details are available to the public in state records.
If you prioritize privacy or lack a physical Colorado address, a Registered Agent Service could be beneficial.
What is a Registered Agent?
A Registered Agent is a person or entity designated to receive legal documents and official government communications on behalf of the LLC.
Who can be a Registered Agent in Colorado?
The Registered Agent can be an individual resident of Colorado or a business entity authorized to do business in Colorado. The agent must have a physical street address in Colorado (no P.O. boxes).
Can I act as my Registered Agent?
Yes, if you meet the residency and physical address requirements, you can act as your Registered Agent.
3. File the Colorado LLC Articles of Organization
Prepare and submit the Articles of Organization to the Colorado Secretary of State.
Guide for completing the articles. Including details like your name and registered agents.
Filing the Colorado LLC Articles of Organization costs $50 when submitted online. This is a one-time cost to create your LLC.
If you want to file this yourself, see our step-by-step guide: ?.
How do I file the Articles of Organization?
You can file the Articles of Organization online or by mail with the Colorado Secretary of State, Business and Professional Licensing. The filing fee is $50.
What information is required in the Articles of Organization?
The Articles of Organization must include the LLC’s name, principal office address, registered agent information, and the names and addresses of the organizers.
How long does it take to process the Articles of Organization?
Processing times can vary. Online filings are typically processed within a few business days, while mail filings may take longer.
4. Create the Colorado LLC Operating Agreement
A Colorado LLC Operating Agreement is like a companion document to Articles of Organization. The articles create your LLC, while the Operating Agreement explains who owns it.
Banks may require it to open your LLC business bank account, and it is important in court to prove your LLC is running correctly.
That's why we recommend that all LLCs, including Single-Member LLCs, have an Operating Agreement.
Operating Agreement is essential in legal proceedings because it serves as evidence that your LLC operates by proper governance practices, bolstering your defense in court.
An Operating Agreement is an internal document, so you don’t need to file it with the IRS. Just keep a copy in your business records for your reference.
Need to save time?
Consider hiring a professional to set up your LLC: Northwest Registered Agent offers LLC formation services starting at $39 plus the state fee.
(Find out why Northwest is the top choice for LLC formation)
What is an Operating Agreement?
An Operating Agreement is a document that outlines the ownership, management structure, and operating procedures of the LLC.
Is an Operating Agreement required in Colorado?
While not legally required, it is highly recommended to have an Operating Agreement to establish clear rules and prevent disputes.
What should be included in an Operating Agreement?
The Operating Agreement should include details on member roles and responsibilities, voting rights, profit distribution, management structure, and procedures for adding or removing members
5. Get an EIN for LLC
Getting a Colorado EIN from the IRS for LLC.
An EIN (Employer Identification Number) is needed for:
- Identifying tax purposes
- Open the business bank accounts
- Apply for licenses and permits
How do I apply for an EIN?
You can apply for an EIN online through the IRS, by mail, or by fax.
How much does an EIN cost?
Obtaining an EIN from the IRS comes at no cost. The application process is free.
How much time does it take to receive an EIN?
When applying online, you will receive your EIN immediately.
If you choose to apply by mail or fax, it can take up to four weeks.
Why do I need an EIN for my LLC?
An EIN is required for federal tax purposes, hiring employees, opening a business bank account, and fulfilling other business-related requirements.
How can I obtain an EIN?
For US Citizens or Residents: If you possess an SSN or ITIN, you are eligible to apply for an EIN online. Simply follow these steps: Apply for an EIN online.
For Non-US Residents: You are unable to obtain an EIN online, but you can still acquire one through fax or mail. Follow these steps to get an EIN without an SSN or ITIN.
What Should I Do after the LLC is Approved?
Business bank account for Colorado LLC
Opening a business bank account for your Colorado LLC is essential to keep personal and business finances separate. This separation helps maintain accurate financial records, simplifies tax filing, and protects your assets in case of legal issues.
Colorado Licenses and Permits
Colorado LLCs may require various licenses and permits depending on their location, industry, and business activities.
Taxes for Colorado LLC
Colorado LLCs are subject to several taxes, including federal and state income taxes, sales taxes (if applicable), and payroll taxes if the LLC has employees. Understanding and complying with these tax obligations is crucial to avoiding penalties and maintaining good standing with tax authorities.
Annual Report Requirement
Colorado LLCs must file an Annual Report each year to the Colorado Secretary of State. This report updates the state with any changes to the LLC's business details and requires payment of a filing fee. Keeping this report current ensures that your LLC remains in good standing and compliant with state regulations.