What Does It Take to Start an LLC in Colorado? Starting an LLC in Colorado

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To start an LLC in Colorado, you need to choose a name, appoint a registered agent, file articles of organization, and prepare an operating agreement. An LLC offers liability protection and tax benefits.

Steps to Establish an LLC

  1. Choose a unique LLC name that complies with Colorado naming laws.
  2. Appoint a registered agent who meets Colorado state requirements.
  3. File the Articles of Organization with the Colorado Secretary of State and pay the filing fee.
  4. Create an Operating Agreement, although it is not mandated by the state, for internal governance.

Reporting and Dissolution

  • File periodic reports as required with the Secretary of State through the online system.
  • To dissolve an LLC, submit a Certificate of Termination stating the dissolution date.

If you don’t live and operate a business in Colorado, generally, it is better to form your LLC in the state where you are active. However, for real estate investments outside of Colorado, form an LLC in the location of the property.

Naming Your LLC

  • Your LLC name must include "limited liability company" or a variation such as "L.L.C." or "LLC".
  • It shouldn’t include terms that could confuse it with government agencies.
  • Avoid restricted words without necessary approvals.

Registered Agent Requirements

  • A registered agent must be at least 18 years old, a Colorado resident, and have a physical in-state address.
  • Colorado differs from other states by allowing the LLC to act as its own registered agent.
  • The registered agent’s address is a public record.

Why Do You Need a Registered Agent?

A registered agent ensures the LLC receives legal documents and the state can contact the LLC as needed.

Cost of Starting an LLC in Colorado

  • Check the Secretary of State website for the current filing fees.
  • Consider the varying costs of hiring a registered agent service.

  1. Check Name Availability:

    • Use the Secretary of State Business Database to verify if the desired LLC name is available.

  2. Appointing a Registered Agent:

    • The registered agent must have a physical street address in Colorado.
    • Public records will list the agent’s address.

  3. Filing Articles of Organization:

    • Complete and file online with the Secretary of State.
    • Include LLC name, address, registered agent, start date, purpose, and management structure.

By following these guidelines, you can successfully start and maintain an LLC in Colorado that offers tax advantages and liability protection.

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