How to Start Your LLC in Colorado
Legal Bueno helps with everything you need to start your business. We take care of all the paperwork so you don't have to worry about it. Want to learn more about the process we handle? Keep reading!
Quick Summary:
- Filing Fee: $50
- Turnaround time: immediately
How do I start an LLC in Colorado?
Thinking about starting an LLC? The process is pretty similar across the states. You'll start by picking a unique name for your business (you'll need to check to make sure it hasn't been taken!) and then filing some paperwork—usually called Articles of Organization or a Certificate of Formation—with your state's agency.
If you want to check the name availability for Colorado, visit https://www.sos.state.co.us/biz/BusinessEntityCriteriaExt.do.
After that's taken care of, you'll want to draft a governing doc for your business called an operating agreement & find any licenses you might need. Just keep in mind that each state has its own little quirks, so it's always a good idea to double-check specific requirements for your area.
What are the costs & processing times of starting a business in Colorado?
Here's the rundown for Colorado:
- The filing fee is: $50
- There are ongoing fees of $10 (every year)
- It usually takes immediately if you're filing online or NO MAIL FILINGS if by mail.
Why Colorado is a great state for your LLC
Starting a company in Colorado presents numerous benefits that cater to both new and seasoned entrepreneurs. Here are some key advantages:
- Access to Funding: The Colorado Office of Economic Development and Industrial Trade offers various programs, including microloans for small businesses. These loans, which range from $5,000 to $50,000, provide vital capital for startups needing financial support.
- Simplified Business Structure: Establishing a Colorado Limited Liability Company (LLC) is often the quickest and most straightforward option for startups. The streamlined rules and regulations make it easier for entrepreneurs to navigate the initial setup process.
- Tax Advantages: Forming an LLC allows for easier tax filing, with potential benefits that can optimize tax treatment, ultimately enhancing the company’s financial flexibility.
- Asset Protection: An LLC structure protects personal assets from business liabilities and debts. This security is vital for entrepreneurs who want to mitigate their risk while exploring business opportunities.
- Cost-Effective Setup: The cost to file for an LLC in Colorado is relatively low at just $50, making it an affordable option for starting a new venture.
- Alternative Business Structures: For those whose business model may require a different legal entity, Colorado also allows for corporation formation, providing flexibility to meet varied needs.
Overall, Colorado offers a supportive environment for entrepreneurs, with access to funding, minimal regulatory hurdles, and robust legal protections.
Legal Requirements
Remember! Legal Bueno will handle all of these requirements for you, but if you're interested, here are the legal requirements for Colorado:
Articles of Organization
The articles of organization must include:1. The name of the LLC;
- The principal office address of the LLC's initial principal office;
- The registered agent name and registered agent address of LLC's initial registered agent;
- The true name and mailing address of each person forming the LLC;
- A statement that management of the LLC is vested in one or more managers or is vested in the members, whichever be the case;
- A statement that there is at least one member of the LLC; and
- Any other matters relating to the LLC or the articles of organization that the persons forming the LLC determine to include.
Colo. Rev. Stat. § 7-80-204
Filing fee: $50
Filing Process
After you've prepared the initial formation documents, you need to file it! Here is what Colorado laws require for filing:
Documents required or permitted to be filed with the secretary of state must:1. Contain all information required by law and may not contain other information;
- Be on or in a medium, and be delivered in a manner, that is acceptable to the secretary of state. If the secretary of state permits a document to be delivered on paper, the document must be typewritten or machine printed, and the secretary of state may impose reasonable requirements upon the dimensions, legibility, quality, and color of the paper and typewriting or printing and upon the format and other attributes of any document that is delivered electronically. If the delivery of a document for filing is required to be accomplished electronically, the document must not be accompanied by any physical document unless the secretary of state permits such accompaniment;
- The document must be in the English language. The entity name of any entity contained in the document need not be in English if expressed in English letters or arabic or roman numerals;
- The document must state the section or sections of the organic statutes pursuant to which it is delivered to the secretary of state for filing;
- The document must state the true name(s) and mailing address(es) of at least one of the individuals who caused the document to be delivered for filing;
- The document must include any required form or cover sheet; and
- The document must be delivered to the secretary of state for filing, accompanied by all required fees.
Colo. Rev. Stat. § 7-90-301
The secretary of state must furnish, on request, any form or cover sheet that is required to be used.
Colo. Rev. Stat. § 7-90-302
Additional Legal Considerations
Here are some additional relevant laws that might be useful when operating your business in Colorado:
Effect of operating agreement–nonwaivable provisions–statute of frauds
Colo. Rev. Stat. § 7-80-108
Statement of change
Colo. Rev. Stat. § 7-90-305.5
Periodic reports
Colo. Rev. Stat. § 7-90-501