If you are thinking about starting a limited liability company (LLC) in Colorado, there are several options to consider. One is forming a Limited Liability Company by filing an article of organization form with the state. If this option seems appealing, there are several other considerations you should make as well. These are discussed below.
First, if you are incorporating in Colorado, it is important to remember that the bylaws of Colorado are not considered "statutory law" under the state law. Therefore, although the Colorado statute does affect your rights, they are not considered "statutory law" for purposes of binding the LLC. colorado llcs has many of the same benefits and protections of large corporations without the complex regulations, rules and compliance problems common to many large business entities. In short, the advantages of starting a colorado llc includes:
Free status - an LLC is not required to be registered. This is important because in order to do business in Colorado, you must have a registered agent. The registered agent service provided by your LLC will provide you with a Colorado LLC form to sign and file with the secretary of state. After your form is filed with the secretary of state, it must be published online with the proper forms for each respective type of license or certificate, including the business license. If you have a street address, any post office box and the business address of your residence are sufficient for your street address, your office and your business.
Colorado Limited Liability Company Formation & Annual Reports
Limited Liability Company Formation - operating a Colorado LLC is much simpler than most other states in the US. LLCs are also known as "pass-through" corporations. Unlike corporation filings, LLCs have no necessity to provide the state with any information about its owners or shareholders. All that you need to do is to file a simple notice of intent with the secretary of state, stating that you are going to start a Colorado LLC. In addition, there is no requirement that you disclose your personal or financial information to the public.
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Tax Treatments - unlike most states, a Colorado LLC has only two basic requirements in order to be valid. First, it must be registered under its own state law. Then, it must be organized and maintained under the laws of Colorado. Apart, from these two basic requirements, a Colorado LLC is treated as an S corporation, for tax purposes. Your business name must include the LLC name when you file its Articles of Organization, but otherwise, it can be kept private.
Business Transactions - like all businesses, a Colorado LLC has to register with the state. At this point, it will receive an Employer Identification Number or EIN. This number is needed for tax reporting and it shows, to the IRS, how much the business is worth. The LLC name must also be included in the business's records, as well as its filed or written income tax returns.
Filing an Annual Report - upon formation, Colorado LLCs are required to file an annual report with the state. Like the annual report of any other business, it is required to contain all the relevant information that the state needs. This includes its status (active, inactive or discontinued) and the complete list of its registered agents. It also has to list the shareholders (the people who own the LLC). Information on its members is not required.
Colorado Limited Liability Company Formation - if you are a resident of the state, you may be required to get a business license in order to open up your business. However, it is not mandatory for you to get a business license in order to file your Colorado LLC's annual report. Colorado LLCs must file a separate form each time they issue a report. This form is known as the 'annual report of business operations'. Therefore, you need not worry about getting your Colorado LLC forms filed every year.
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