Aside from the name of your Colorado LLC being distinguishable from existing business names registered in the Secretary of State, it should also contain specific words or abbreviations: ‘limited liability company’, ‘Limited Liability Company’, ‘Limited Company’, ‘ltd. liability company’, ‘limited liability co.’, ‘ltd. liability co.’, ‘L.L.C.’, ‘LLC’, ‘L.C.’ or ‘LC’.
Legally reserve your chosen name by completing a Statement of Reservation of Name online. This reservation is valid for 120 days and costs $25.
When starting an LLC in Colorado, you are required by law to have a Registered Agent. There is certain criteria you need to meet when hiring a Colorado Registered Agent.
First, the Registered Agent should be a resident of Colorado. If it is a business entity, the business should have Colorado as its principal place of conducting business. If it is a foreign business entity, it should be authorized to conduct business in the state. An LLC cannot be its own Registered Agent.
You can hire a Registered Agent service and pay up to $160/year, or obtain a Colorado Registered Agent free of charge when you start your LLC with IncFile.
Your Colorado LLC is ‘legally born’ when you register an LLC in Colorado. This involves filing an Article of Organization with the Secretary of State. The following information is required when filing:
LLC Filing Fee: $50
To begin operations as a Colorado LLC, you need to obtain an employer identification number (EIN). Your EIN will be your unique ID, much like an individual’s social security number.
You can obtain an employer identification number online by applying at the IRS website, free of charge.
When you start an LLC, it is very important to keep your personal and business assets separate. The best way to do this is to open a business bank account. This will help separate your resources so you can pay attention to your assets individually.
Recommended Resource: Look into this roundup of the best business banking accounts to decide which one is right for you.
Congratulations! You have followed the steps above and are officially a Colorado LLC. In addition to the five state guidelines we have previously mentioned, here are five additional steps that will ensure your success.
While it’s not mandatory to create a business plan when starting a LLC in Colorado, it is highly recommended.
A business plan serves as your business’ blueprint while helping you obtain the funding you need. Use the resources below to write a solid business plan.
When starting an LLC, it’s critical to manage your LLC tax’s and overall finances. You can register online for your tax obligations through Colorado Business Express.
Recommended Resource: Xero is an accounting software that helps you manage your finances quickly and painlessly. No need to keep track of every receipt and penny spent for tax time. Try Xero free for 30 days.
In addition to managing your business taxes, don’t forget to manage your LLC’s business licensure. You are required to manage business licenses and regulations in order for your business to run legally.
Recommended Resource: If you would like for professionals to find all business licenses and regulations on your behalf, here is a great package. Otherwise, look into this resource roundup offered by the SBA.
An LLC Operating Agreement protects your LLC status. While having one is not a legal requirement, it is highly recommended.
An Operating Agreement protects the financial and operational relationships between owners of the LLC. You can use this template Operating Agreement and customize it according to your needs.
If you want to be taken seriously, you must have a professional website. With WordPress, the budding entrepreneur is able to build and customize a website in minutes. Bluehost is reliable, has a 1-click automatic WordPress installation, and boasts reliable customer support.
Resource for Getting Started: Create the perfect business website using this step-by-step guide.
Note that this guide is an informational article for starting an LLC in Colorado and not legal advice. You should talk to your lawyer if you want to discuss the intricacies of a Colorado LLC. Also note that you will need to file periodic reports for your LLC and can learn more about that obligation here.