Colorado is renowned for its entrepreneur-friendly climate, featuring a robust economy that entrepreneurs can leverage to their advantage. If you’re set to register an LLC in Colorado, you’ve landed in the right spot. Here are the six steps you need to follow to kickstart your Colorado LLC today.
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Colorado LLC Quick Facts
- To register an LLC in Colorado, you must file Articles of Organization.
- The filing fee to start an LLC in Colorado is $50.
- All LLCs in Colorado are required to appoint a registered agent.
- You must file a periodic report for your LLC annually.
7 Steps to Registering an LLC in Colorado
Registering an LLC in Colorado can be as simple as these steps.
To register an LLC in Colorado, follow these seven steps:
- Name Your Colorado LLC
- Designate a Registered Agent
- Submit Your Articles of Organization
- Create Your Operating Agreement
- Obtain an EIN and Handle Taxes
- File a Periodic Report
- File a Beneficial Ownership Information Report
Step 1: Name Your Colorado LLC
The first step toward registering your LLC in Colorado is naming your business.
Your LLC name must meet the following requirements:
- Include “Limited Liability Company,” “LLC,” or “Limited Company”
- Must be distinguishable from any business entity in the state
- Cannot include terms that imply government affiliation or words that may require additional legal paperwork such as “university”
For the full list of naming requirements for Colorado LLCs, review these business naming guidelines.
Additionally, to ensure your business name is unique you will need to complete a business entity search on the Colorado Secretary of State website.
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Step 2: Designate a Registered Agent
All LLCs in Colorado must designate a registered agent.
A registered agent is responsible for receiving important information and documents on behalf of the business such as tax forms and government correspondence.
Your Colorado registered agent must:
- Be a resident of Colorado or a business entity authorized to do business in the state
- Have a physical street address in Colorado (Not a P.O. box)
- Be present at the address provided during normal business hours
- Be over the age of 18
Who is Eligible to Serve as a Registered Agent in Colorado?
In Colorado, your LLC registered agent can be the LLC owner, an employee of the company, a friend, family member, or a registered agent service. The registered agent must have a physical street address in Colorado where they can receive legal documents on behalf of the LLC.
Choosing a registered agent is a crucial step in the process of registering an LLC in Colorado, and it is important to carefully consider who will best fulfill this role for the company.
Step 3: Submit Your Articles of Organization
To form an LLC in Colorado, you need to file Articles of Organization with the Secretary of State.
You can submit these formation documents online along with a $50 filing fee.
You should collect the following details before filing:
- Your LLC name
- The name and address of your registered agent
- Management structure (manager-managed vs. member-managed)
- The name(s) and address(es) of the persons forming the LLC
Quick Note: If your business is already formed in another state, you will need to file as a foreign LLC in Colorado. To do so, you will need to complete a filing online with the Secretary of State. The filing fee is $100.
Step 4: Create Your Operating Agreement
In Colorado, creating an operating agreement for your LLC is not required, however, it is highly recommended. An operating agreement is a legal document that outlines the internal operations and ownership structure of your LLC.
This document helps establish the rights and responsibilities of the members, as well as how business decisions will be made, preventing future conflict and ensuring members are in alignment.
Step 5: Obtain an EIN and Handle Taxes
Once you’ve registered your Colorado LLC, you need to obtain an Employer Identification Number (EIN). This is a nine-digit number provided by the Internal Revenue Service (IRS) that ensures your business is able to be identified for tax reporting purposes.
Having an EIN is essential for various aspects of your business, including taxes, hiring employees, and opening a business bank account.
You can get an EIN for free on the IRS website.
In addition to obtaining an EIN, it is important to identify any additional tax obligations that your business may have in Colorado. You can do so by visiting the Colorado Department of Revenue website.
Step 6: File a Periodic Report
In Colorado, LLCs are required to submit a yearly Periodic Report. For new LLCs, the inaugural Periodic Report is due within the two months prior to or the two months after the LLC’s formation.
You can submit this filing online. The filing fee is $10.
Step 7: File a Beneficial Ownership Information Report
The next step in registering your LLC in Colorado is to file a Beneficial Ownership Information (BOI) report with the US Financial Crimes Enforcement Network (FinCEN).
New LLCs must file this report within 90 days of formation, while existing LLCs must complete the filing before January 1st, 2025. Failure to file the report on time can result in a $500 per day fine.
To file the Statement of Beneficial Ownership, you can do so online for free on the FinCEN website.
Next Steps
- Open a business bank account to separate and protect your personal assets. We recommend Lili for business banking. Sign up in just a few minutes to access financial tools for your LLC.
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- Obtain licenses and permits that may be required federally or by the state for your LLC such as a Colorado business license.
- File Periodic Reports yearly with the Secretary of State’s office in Colorado to maintain good standing for your LLC. Make sure to keep track of filing deadlines and requirements.
- Find business insurance starting with general liability, workers’ compensation, and personal liability insurance. Next Insurance offers fast, affordable coverage for new businesses.
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Additional Tips for Success
- Build a strong network: Connecting with other entrepreneurs, mentors, advisors, and industry leaders can provide valuable support and guidance as you navigate the registration process and beyond.
- Keep track of compliance requirements: Colorado has specific reporting and fee requirements that must be followed to maintain compliance and avoid any penalties. Stay informed and up-to-date with these obligations.
- Plan for the future: It is essential to have a clear vision and goals for your LLC. By mapping out the future of your company, you can ensure that you are on track to achieve important milestones and objectives.
Conclusion
Starting a new business is an exciting endeavor. By choosing to form an LLC in Colorado you take the steps necessary to protect your personal assets and build credibility for your business. By following these steps closely and doing your research to ensure you’re meeting all the state’s requirements for LLC registration, you ensure your business is starting off strong.