This is a complete guide to forming an LLC in Colorado. Learn how to form an LLC in Colorado in this in-depth guide.
You have a lot of options when it comes to how you structure your business. One great option is the limited liability company (LLC). An LLC is a hybrid of a corporation and a partnership.
It has some benefits for corporations, like limited liability and tax treatment, but it’s also easier and less expensive to form than a corporation. A downside is that LLCs don’t give you as many trademark or copyright protections as corporations do.
If you’re thinking about starting your own business, do your research on the different options and choose which type best suits your needs.
After selecting your business entity, you need to consider the state where you are planning to form an LLC.
How to form an LLC in Colorado in 2022
Step by Step to Form an LLC in Colorado
In this in-depth guide, I will tell you how to form an LLC in Colorado. For forming an LLC in Colorado you have to follow five steps:
Step 01: Name Your Colorado LLC
The next step to form an LLC in Colorado is to select the name of your LLC. The name of your LLC is essential in obtaining an EIN and opening a bank account in the U.S. for your business.
There are a few guidelines to follow when you are about to name your company:
- The company name must include the term-limited liability company or the abbreviations LLC / L.L.C.
- Specific terminologies like FBI, State Department, etc. they can mistake your LLC for the government agency. The use of such terms is forbidden.
- The use of restricted words like University, Lawyer, and Banks requires additional documents and an authorized person.
Step 02: Hire a Registered Agent
The next step to form an LLC in Colorado is to appoint a Registered Agent.
A Registered Agent is a person or a company who receives all official mail and processing services on behalf of your business. To keep your business in good standing, you must maintain a registered agent in Colorado, which we do for $99 per year.
They are required by law and must maintain a physical address and maintain regular opening hours. Since you do not live in the United States, these are requirements that you cannot meet.
Micahguru Formation is best for this task. For Registered Agent service, we charged $99 per year, which is comprehensively cheap and more valuable than others.
Step 03: File Your Colorado LLC Articles of Organization
To register an LLC in Colorado, you have to file a Certificate of Formation which is known as Articles of Organization with the Colorado Secretary of State which costs $50.
The Certificate of Formation must include:
- Name of your LLC.
- Name and Address of the Registered Agent of your LLC.
- Signature of an Authorized Person.
Step 04: Create an Operating Agreement
An Operating Agreement is not necessary to form an LLC in Colorado, but it’s highly advised to have one. An Operating Agreement is a document which is sets out the rights and responsibilities of the members and managers of an LLC.
If you do not have an Operating Agreement, state LLC law will govern the operation of your LLC.
Step 05: Apply For an EIN
The next step is to apply for EIN. An EIN stands for Employer Identification Number. You will require an EIN to file and pay taxes and open a bank account.
Once the State of Colorado has verified that your Articles of Incorporation (for Colorado LLCs) or Articles of Incorporation (for Colorado corporations) have been processed, you can apply for an EIN by completing Form SS-4 with the Internal Revenue Service (IRS).
The IRS accepts EIN requests online, by phone, or by mail. The form is one page and comes with lots of instructions.
You have two options to form an LLC in Colorado:
To form an LLC in Colorado yourself, you need to follow all the steps select a name for your LLC, hire a Registered Agent, file Colorado Articles of Organization which costs $50, create an Operating Agreement, and apply for an EIN. Forming an LLC in Colorado yourself can be difficult for you if you are completely unfamiliar with the system.
We have a separate package for Colorado which, includes Colorado Filing Fees, Registered Agent Fee $99/year, Expedited Filling Services, Annual Report Services, Operating Agreement Template, (EIN) Employer Identification Number, Banking Resolution Template, Work-Free Compliance with 100% Accuracy Guarantee. For which we charge $249 and we take 4-8 business days.