Where Can I Register A Business In Fort Collins

How to Form an LLC in Colorado

You'll need to file the Colorado Articles of Organization to set up an LLC (limited liability company) in Colorado. You can file the Articles of Organization online and the fee is $50. The Articles of Organization is the document that officially creates your Colorado LLC.

Follow the step-by-step guide below to form a Colorado LLC today and get your business up and running. To learn more about LLCs and their benefits, please read our What is an LLC guide.

STEP 1: Name your Colorado LLC

Choosing a company name is the first and most important step in forming your Colorado LLC. Be sure to choose a name that complies with Colorado naming laws and requirements and is easily searchable by potential business clients.

1. Follow the naming guidelines for a Colorado LLC:

• Your name must include the phrase "limited liability company" or one of the following abbreviations or words: "LLC, L.L.C., ltd., limited liability co., ltd. liability company, ltd. liability co., or limited."
• Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
• Restricted words (e.g. Bank, Attorney, University) may require additional legal paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.

2. Is the name available in Colorado? Make sure the business name you want isn't already taken by doing a name search online through the Colorado Secretary of State Business Database Search.

To learn more about searching for a Colorado LLC name, read our full guide.

3. Is the URL available? We recommend that you check to see if your business name is available as a web domain. Even if you don't plan to create a business website today, you may want to buy the URL in order to prevent others from acquiring it.

After securing a domain name for your LLC, consider setting up a business phone service to establish further credibility and improve customer satisfaction. Nextiva offers a variety of helpful features such as unlimited voice and video callings, a convenient mobile app, and more.Try Nextiva today.

Not sure what to name your business? Check out our LLC Name Generator. Then, create a logo with our Free Logo Generator.

FAQ: Naming an LLC

What is an LLC?

LLC is short for Limited Liability Company. It is a simple business structure that offers more flexibility than a traditional corporation while providing many of the same benefits. An LLC is one of several business structures, such as a sole proprietorship, partnership, and corporation (C corp and S corp). For more information, read our What is an LLC guide.

Watch our video: What is an LLC?

Do I need to get a DBA or Trade Name for my business?

Most LLCs do not need a DBA. The name of the LLC can serve as your company's brand name and you can accept checks and other payments under that name as well. However, you may wish to register a DBA if you would like to conduct business under another name.

To learn more about DBAs in your state, read our How to File a DBA guide.

STEP 2: Choose a Registered Agent in Colorado

You arerequired to appoint a Registered Agent for your Colorado LLC.

What is a Registered Agent? A registered agent is an individual or business entity responsible for receiving important tax forms, legal documents, notice of lawsuits, and official government correspondence on behalf of your business. Think of your registered agent as your business's point of contact with the state.

Who can be a Registered Agent? A registered agent must be a full-time resident of Colorado or a corporation, such as a registered agent service, authorized to conduct business in the state of Colorado. You may elect an individual within the company including yourself.

To learn more about Colorado Registered Agents, read our full guide.

Recommended: ZenBusiness includes Registered Agent Service with their LLC formation package ($39 for the 1st year + State Fees).

FAQ: Nominating a Registered Agent

Can I be my own Registered Agent?

Is a Registered Agent service worth it?

Using a professional registered agent service is an affordable way to manage government filings for your Colorado LLC. For most businesses, the advantages of using a professional service significantly outweigh the annual costs.

For more information, read our article on Colorado registered agents.

STEP 3: File Your Colorado LLC Articles of Organization

To register your Colorado LLC, you will need to file the Articles of Organization with the Colorado Secretary of State. You can only apply online.

Now is a good time to determine whether your LLC will be member-managed vs. manager-managed.

File Online With the State of Colorado

file online

Fee: $50 (Nonrefundable)

Instructions:Choose "Limited liability company (LLC)" from the "File a Form" landing page to be directed to the state's online LLC registration portal.

For help with completing the form, visit our Colorado Articles of Organization guide.

If you're expanding your existing LLC to the state of Colorado, you will need to form a Foreign LLC.

FAQ: Filing LLC Documents

What is the processing time to form my LLC in Colorado?

Instant once payment has been received online.

What's the difference between a domestic Colorado LLC and foreign LLC?

An LLC is referred to as a "domestic LLC" when it conducts business in the state where it was formed. Normally when we refer to an LLC we are actually referring to a domestic LLC. A foreign LLC must be formed when an existing LLC wishes to expand its business to another state.

Read our What Is a Foreign LLC article to learn more.

How much does it cost to start a Colorado LLC?

STEP 4: Create Your Colorado LLC Operating Agreement

An operating agreement is not required for an LLC in Colorado, but it's a good practice to have one.

What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read our Colorado LLC operating agreement guide.

FAQ: Creating a Colorado LLC Operating Agreement

Do I need to file my operating agreement with the state?

No. The operating agreement is an internal document that you should keep on file for future reference. However, many states do legally require LLCs to have an operating agreement in place.

STEP 5: Get an EIN for Your Colorado LLC

What is an EIN? EIN stands for Employer Identification Number. EINs are a nine-digit number assigned by the Internal Revenue Service (IRS) to help identify businesses for tax purposes. It is essentially a Social Security number for a business.

An EIN is sometimes referred to as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN).

Why do I need an EIN? An EIN is required to:

• Open a business bank account
• File and manage Federal and State Taxes
• Hire employees

What if I already have an EIN for my sole proprietorship? The IRS requires that sole proprietorships get a new EIN when converting to an LLC.

Where do I get an EIN? You can get an EIN for free from the IRS. Getting an EIN is an easy process that can be done online or by mail.

FOR INTERNATIONAL EIN APPLICANTS: You do not need a SSN to get an EIN. For more information, read our How to Get an EIN as a Foreign Person guide.

Option 1: Request an EIN from the IRS

Apply Online

- OR -

Option 2: Apply for an EIN by Mail or Fax

Download Form

Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free

FAQ: Getting a Colorado LLC EIN

How do I get an EIN if I don't have a Social Security number?

What tax structure should I choose for my Colorado LLC?

Do I need an EIN for my LLC?

All LLCs with employees, or any LLC with more than one member, must have an EIN. This is required by the IRS.

Learn why we recommend always getting an EIN and how to get one for free in our Do I Need an EIN for an LLC guide.

Have a question? Leave a Comment!

Ask us a question, tell us how we're doing, or share your experiences. Join the conversation in our Comment Section.

Have a question? Leave a Comment!

Ask us a question, tell us how we're doing, or share your experiences. Join the conversation in our Comment Section.

Considering Using an LLC Formation Service?

We reviewed and ranked the top 5 LLC formation companies.
Find out which is the best LLC service for you.

Best LLC Services

Important Steps After Forming an LLC

Separate Your Personal and Business Assets

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your Colorado LLC is sued. In business law, this is referred to as piercing the corporate veil.

You can start protecting your LLC in Colorado with these steps:

1. Opening a business checking account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Need help finding your EIN for your bank application? Visit our EIN Lookup guide for help.

Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.

2. Getting a business credit card:

• Helps you separate personal and business expenses.
• Builds your company's credit history, which can be useful to raise capital (e.g., small business loans) later on.

For other important steps to protect your corporate veil, like properly signing legal documents and documenting company business, please read our corporate veil article.

3. Hiring a business accountant:

• Prevents your business from overpaying on taxes while helping you avoid penalties, fines, and other costly tax errors
• Makes bookkeeping and payroll easier, leaving you with more time to focus on your growing business
• Manages your business funding more effectively, discovering areas of unforeseen loss or extra profit

For more business accounting tools, read our guide to the best business accounting software.

Get Business Insurance For Your Colorado LLC

Business insurance helps you manage risks and focus on growing your LLC. The most common types of business insurance are:

• General Liability Insurance: A broad insurance policy that protects your business from lawsuits. Most small businesses get general liability insurance.
• Professional Liability Insurance: A business insurance for professional service providers (consultants, accountants, etc.) that covers claims of malpractice and other business errors.
• Workers' Compensation Insurance: A type of insurance that provides coverage for employees' job-related illnesses, injuries, or deaths. In Colorado, businesses with one or more employees, excluding officers and LLC members, are required by law to have workers' compensation insurance.

Find out how much it will cost to keep your business protected.

Get a Free Quote

Read our review of the best small business insurance companies.

Create Your Business Website

Creating a website is a big step in legitimizing your business. Every business needs a website. Even if you think that your business is too small or in an offline industry, if you don't have a website, you are missing out on a large percentage of potential customers and revenue.

Some may fear that creating a business website is out of their reach because they don't have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn't delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own and control.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don't need to hire a web developer or designer to create a website that you can be proud of.

Using our website building guides, the process will be simple and painless and shouldn't take you any longer than 2-3 hours to complete.

Send Out a Press Release

Press releases are among the easiest and best ways to promote your business. They are also one of the most cost-effective strategies as they:

• Provides publicity
• Establish your brand presence on the web
• Improve your website's search engine optimization (SEO), driving more customers to your website
• Are a one-time cost in terms of effort and money
• Have long-lasting benefits

Join the Conversation

We are here to guide you through your entrepreneurial journey, and are always looking at your feedback. Share your experiences in our comment box, chat with other entrepreneurs, or simply let us know how we're doing.

Let's Connect

Keep Your Company Compliant

Colorado Business Permits and Licenses

Do I need business licenses and permits?

To operate your LLC in Colorado you must comply with federal, state, and local government regulations. For example, restaurants likely need health permits, building permits, signage permits, etc.

The details of business licenses and permits vary from state to state. Make sure you read carefully. Don't be surprised if there are short classes required as well.

Fees for business licenses and permits will vary depending on what sort of license you are seeking to obtain.

Find out how to obtain necessary Colorado business licenses and permits for your LLC or have a professional service do it for you:

• Business License Guide: Use our detailed Colorado Business License guide.
• Federal: Use the U.S. Small Business Administration (SBA) guide.
• State:Apply for or learn more about business licenses, permits and registration with the Colorado Department of Regulatory Agencies.
• Local: Contact your local county clerk and ask about local business licenses and permits.

Recommended: If you are a first-time entrepreneur, consider having a professional service research your business's licensing requirements. Read our best business license services review on Startup Savant.

Colorado LLC Tax Filing Requirements

Depending on the nature of your business, you may be required to register for one or more forms of state tax.

Sales Tax

If you are selling a physical product, you'll typically need to register for a seller's permit online through the State of Colorado's website.

This certificate allows a business to collect sales tax on taxable sales.

Sales tax, also called "Sales and Use Tax," is a tax levied by states, counties, and municipalities on business transactions involving the exchange of certain taxable goods or services.

Read our Colorado sales tax guide to find out more.

Employer Taxes

If you have employees in Colorado, you will need to register for Unemployment Insurance Tax and Employee Withholding Taxonline through the State of Colorado's website.

Federal LLC Tax Filing Requirements

Most LLCs will need to report their income to the IRS each year using:

• Form 1065 Partnership Return (most multi-member LLCs use this form)
• Form 1040 Schedule C (most single-member LLCs use this form)

How you pay yourself as an owner will also affect your federal taxes. Visit our guide to learn more about how to pay yourself from your LLC.

Read ourLLC Tax Guide to learn more about federal income taxes for LLCs.

File Your LLC Annual Report

Colorado requires LLCs to file an annual report with the Colorado Secretary of State.

File an Annual Report Online with the State of Colorado

File online

Fee: $10 (Nonrefundable)

Filing Window: Due within a 5 month period starting 2 months before and 2 months after the date in which the LLC was formed. For more information, visit Colorado's Secretary of State website.

Late Filings: Colorado charges a $50 penalty if you miss the annual report deadline. In addition, failure to file your annual report for 2 months will cause your LLC to be designated as "Delinquent," resulting in loss of certain rights and privileges.

Avoid Automatic Dissolution

LLCs may face fines and even automatic dissolution when they miss one or more state filings. When this happens, LLC owners risk loss of limited liability protection. A quality registered agent service can help prevent this outcome by notifying you of upcoming filing deadlines and by submitting reports on your behalf.

Recommended: ZenBusiness offers a reliable registered agent service and excellent customer support. Learn more by reading our ZenBusiness Review.

Hiring Employees

If you plan to hire employees for your business, stay compliant with the law by following these steps:

• Verify that new employees are able to work in the US
• Report employees as "new hires" to the State
• Provide workers' compensation insurance for employees
• Withhold employee taxes
• Print workplace compliance posters and place them in visible areas of your workspace

Find more information at the Colorado Department of Labor website.

FAQ: Hiring Employees

What is the minimum wage in Colorado?

The minimum wage in Colorado is $12.32 per hour. In Denver, the minimum wage is $12.85 per hour.

How often do I need to pay employees?

In Colorado, wages must be paid at least once per month.

Get Help Starting a Business in Colorado

We understand that creating an LLC in Colorado and getting your business up and running comes with many challenges. To help you succeed, we compiled the best local resources in every major metro area in Colorado. You can get free assistance in the following areas:

Boulder | Colorado Springs | Denver | Fort Collins

Small Business Resources

Small Business Trends

Learn about the current US business trends so you can make the most informed business decisions.

Women in Business Tools and Resources

If you have a woman-owned business, many resources are available to help you concentrate on your business's growth:

• Funding - (ie. grants, investors, loans)
• Events - (ie. conferences, meetups)
• Guides - (ie. business formation, personal growth)
• Support - (ie. advice, communities, business strategies)

Our information and tools will provide educational sources, allow you to connect with other women entrepreneurs, and help you manage your business with ease.

Free LLC Legal Forms

TRUiC offers a number of free LLC legal forms to help with creating documents like:

• Operating agreements
• LLC resolutions
• Hiring documents, including:
  
  • Employment contracts
  • Independent contractor service agreements (ICSA)
  • Non-disclosure agreements (NDA)

All you'll need to do to download the forms is sign up for the TRUiC Business Center, which is also free, forever.

How to Build Business Credit

Learning how to build business credit can help you get credit cards and other business funding options in your business's name (instead of yours), with better interest rates, higher lines of credit, and more.

TRUiC's Small Business Tools

TRUiC believes business tools should be free and useful. Our tools help solve business challenges, from finding an idea for your business, to creating a business plan, writing an operating agreement for your LLC, and more.

Check out TRUiC's small business tools:

• Business Name Generator
• Business Idea Generator
• Free Logo Maker
• Operating Agreement Tool
• Business Plan Generator
• Entrepreneur Quiz

More Colorado LLC Information

Colorado Foreign LLCs

Forming a foreign LLC allows your company to operate as one entity in multiple states. If you have an existing LLC and want to do business in Colorado, you will need to register as a foreign LLC. This can be done online.

File Online with the Colorado Secretary of State

File Online

Fee: $100 (Nonrefundable)

How to Obtain a Certificate of Good Standing in Colorado

A Certificate of Good Standing verifies that your LLC in Colorado was legally formed and has been properly maintained. Several instances where you might need to get one include:

• Seeking funding from banks or other lenders
• Forming your business as a foreign LLC in another state
• Obtaining or renewing specific business licenses or permits

For more information, visit Colorado's Secretary of State website.

You can order a Colorado LLC Certificate of Good Standing online.

Request a Certificate of Good Standing Online

Order Online

Fee: Free

How to Dissolve an LLC in Colorado

If at any point in the future you no longer wish to conduct business with your Colorado LLC, it is important to officially dissolve it. Failure to do so in a timely fashion can result in tax liabilities and penalties, or even legal trouble. To dissolve your LLC, there are two broad steps:

• Close your business tax accounts
• File the Articles of Dissolution

When you are ready to dissolve your LLC, follow the steps in our Colorado LLC Dissolution Guide.

Guide to Starting a Business in Colorado

Top Five LLC Formation Services Compared

Cost to Form an LLC in Colorado

Key Terms for Entrepreneurs

LLC: An LLC is a US business structure that offers the personal liability protection of a corporation with the pass-through taxation of a sole proprietorship or partnership.

DBA: A DBA, or doing business as name, is any name a business operates under that isn't its legal name.

Partnership: A partnership is an informal business structure owned by more than one individual that doesn't provide personal liability protection.

Where Can I Register A Business In Fort Collins

Source: https://howtostartanllc.com/colorado-llc

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