To form a single member LLC in Colorado, file Articles of Organization, choose a unique name, pay a $50 state fee plus optional $25 name reservation fee, and obtain an EIN if you want a bank account or employees.
Most new single-member LLCs need an EIN for federal tax purposes, even those taxed as sole proprietors, in order to open a bank account or have employees.
LLCs default to pass-through taxation. The owners pay 4.63% state tax on profits. LLCs can elect S corp or C corp status instead.
Does Colorado recognize single-member LLC? Yes, Colorado recognizes single-member LLCs. A single-member LLC in Colorado provides liability protection and flexibility in management and taxation, while avoiding the higher corporate tax rates.
Having a dedicated bank account for your Colorado single-member LLC is strongly recommended by lawyers and accountants even though not legally required. An operating agreement is not required. Be sure to obtain an EIN if you need to open a bank account or hire employees.