This guide to setting up an LLC Colorado includes steps-by-step directions on how to file documents, get tax IDs, set up company records, and other pertinent information.
Because LLCs are relatively inexpensive, flexible, and easy to operate, they are the most common business structure. The legal formation of an LLC allows you to establish your business, limit your personal liability, and gives you tax flexibility. You will find the steps below helpful as you complete this process.
Step-by-Step Colorado LLC Instructions
The legal name of your LLC cannot be confused with any other registered name. Conduct a name lookup to verify availability.
Name Search Colorado Secretary Of State Name Reservation Optional Suffix: “(c). A limited liability company’s entity name shall contain the following: “limited liability company”, ltd. risk company”, “limited” or “limited liability “, “limited liability co,”, “ltd. co.”, and “limited”, “l.l.c.” “, or “llc”,
Appoint a Registered agent
Before you file to form your Colorado LLC you need to choose who your Colorado registered Agent will a be. A registered agent allows a business to be notified of lawsuits or other legal or government notices.
Each LLC must be registered by an agent according to state law. You must designate the registered representative when you file Colorado articles or organization with Colorado Secretary.
Colorado Certificates of Formation
Register the articles to form a limited liability corporation.
Agency: Colorado Secretary Of State Form:
Articles from Organization
Instructions – Articles of Organization — Domestic Limited Liability Company
Filing Method Agency Fee $50 Turnaround: Start immediately Law:
Colorado Revised Statutes – SS7-80-01 et. seq. Colorado Limited Liability Company Act
- Secure Business Filing can immediately be created on your record after formation. On the transaction confirmation screen, click “setup Secure Business Filing”.
- You should save a copy of the articles of organisation even though they are electronically filed. This will allow you to secure your records and be available for use in the course of your business (e.g. To open a bank account in your business.
Establish Company Records
Your LLC must maintain correct and complete books, records, and financial statements. Your LLC’s documents begin with your filed articles. The LLC will produce other official records like:
- Minutes of a meeting
- Operating agreement
- EIN verification letter
- The LLC may be amended or filed with other entities throughout its lifetime.
Sign the Operating Agreement
You can draft an Operating Agreement by using a template. This is the governing document that governs the LLC. It describes the details of how the LLC operates, such as the holding of an annual meeting. You will discuss and approve the agreement at your organizational meeting.
Host the Organizational Meeting
The organizational meeting is a first meeting of LLC members. For this meeting you will need your operating agreement and filed articles of organisation. Keep a log of the meeting, and keep them in your company record books.
Get a Federal Employee Identification Number (EIN).
EINs must be obtained if your LLC employs more than one person or has multiple members. EINs are also required to open bank accounts.
Agency: Internal Revenue Service Form:
Filing Method Mail, phone, or Online. IRS fee $0 Turnaround: Instantly online or by telephone 4 business day by fax. 4-5 weeks via post Notes: The IRS website can only be accessed during specific hours. Print your EIN to close your session. For more guidance, see IRS Pub 1635: Understanding Your.
Get Colorado State Tax Identification Numbers/Accounts
Colorado allows you to apply online for a single tax registration, or two.
To apply for a tax account or a wage withholding account
- Submit to
- Colorado Department of Revenue
Form CR-0100: Colorado Sales Tax Withholding Account Application
- Filing Method
- Mail, in-person, or online
- $50 deposit if retail sales tax license needed.
- ~2-3 weeks online. 4-6 weeks by post Available immediately in-person
If your LLC has employees who withhold income, you will need a number and a rate for unemployment insurance.
- Submit to
- Colorado Department of Labor and Employment
Form: UITL 100: Application for Unemployment Insurance account and Determination Employer Liability
- Filing Method
- Mail or online
- This application is not for unemployment insurance purposes.
Consider Electing C-Corp taxation or S-Corp taxation
Your LLC automatically receives pass through taxation. The vast majority of LLCs however, keep this tax category. Certain LLCs have the option to choose S-Corporation or C-Corp tax treatment.
- S-Corp may be able to help owners who earn more that $75,000 annually save on self-employment taxes.
- C-Corps have double taxation. Members pay taxes on the profits of the corporation, while members pay taxes when they receive their distributions. C-Corps can offer lower tax rates to retained earnings.
Get business licenses & permits
The necessary licenses or permits to operate your business legally are required. Searching by business type and location using the Small Business Administration Business License & Permit search tool is the easiest way to navigate through the vast array of federal, state, or local requirements.
Colorado Business License
Colorado does not require the licensure of general business licenses at the state level.
Colorado does NOT have a general license for business at the state level. However, licenses from local authorities are sometimes required.
Keep your LLC afloat with ongoing filings
Federal and state tax returns must be filed.
A lot of states also require businesses to file an annual return to maintain good standing before the secretary. See the table below for information on Colorado LLCs.
Colorado Corporation Annual Report Requirements:
Agency: Colorado Secretary Of State Form: You must file electronically. Download a sample periodic reports. Instructions:
Instructions for creating a Periodic Report
Filing Method Agency Fee $10 Due: Annually by the last day of the month in which the initial registration was made. Failure to file the Periodic Report on time will result in the entity having two additional months after the Periodic Report Month to file a Late Periodic Report. Law:
Original Ink Not required Notarize: Not necessary Penalties: $50 late fee Notes:
- All forms must be submitted online and paid by credit/debit cards
- Anyone who is authorized may file.
- Reinstated reinstatement dates are changed to each year at the close of the month.