Starting an LLC in Colorado
To start an LLC in Colorado:
- Pick a suitable business name that complies with all applicable naming requirements under Colorado law. Your name must include the words “limited liability company” or an abbreviation. It cannot include words that could confuse your LLC with a state agency.
- Choose a registered agent. Every LLC in Colorado needs a registered agent, which is a person or business that agrees to accept legal documents on behalf of your LLC.
- File your Articles of Organization with the Colorado Secretary of State ($50 processing fee). This officially registers your LLC with the state. You can file the articles yourself or use an LLC formation service.
An LLC provides liability protection and flexibility in management and taxation. If you live and do business in Colorado, you should form your LLC there to avoid extra registration fees.
Colorado offers a pro-business environment with low taxes, a skilled workforce, and resources to help small businesses. With basic steps – choosing a name, designating a registered agent, and filing articles of organization – you can quickly establish your Colorado LLC.
LLC Costs in Colorado
How much does it cost to form an LLC in Colorado?
- It costs $50 to file the Articles of Organization to form an LLC in Colorado. This fee is paid to the Colorado Secretary of State.
- There is also a $10 annual LLC report fee in Colorado. You are not required to hire an attorney to form an LLC.
The cost of using an LLC formation service in Colorado typically ranges from $50 to $500, depending on the services included. Ongoing costs may include annual report filings, licenses, permits, and registered agent services.
You can change the name or purpose of your Colorado LLC after formation by filing a certificate of amendment. A certificate of good standing shows your LLC is validly existing and has paid all fees.
Before creating your Colorado LLC, know what an LLC is and its advantages for business owners. You should also check if your desired LLC name is available.
Some Colorado cities and counties require business licenses, which varies by location and business type. You need an Employer Identification Number for your LLC to open a bank account, file taxes, and run your business.
Registered Agent and Insurance Requirements
By law, all corporations and LLCs doing business within Colorado are required to have a registered agent. The cost of a registered agent for your Colorado LLC varies from a little over $30 to as much as $300.
- Important Naming Guidelines for Colorado LLCs:
- Your name must include the words “limited liability company” or an applicable abbreviation such as “Ltd. liability company,” “limited,” “L.L.C.,” or “LLC”.
In Colorado, all LLCs are required to have Worker’s Compensation Insurance for all company employees, Automobile Insurance to secure company vehicles against damages, and Professional Insurance for doctors and healthcare specialists.
LLC Formation and Benefits
The cost to start a Colorado limited liability company (LLC) is $50. This fee is paid to the Colorado Secretary of State when filing the LLC’s Articles of Organization.
Most LLC formation services offer Registered Agent services if you choose not to do this yourself.
An LLC has many benefits, including liability protection and certain tax advantages. Here are some pros and cons to consider:
- Liability Pro: Members enjoy legal protection which means personal assets are protected against any defaulted loans or lawsuits brought against your business.
- Con: Liability protection isn’t absolute.
The most significant benefit of forming a Colorado LLC is limited liability protection, pass-through taxation, and flexible management structures.