Colorado’s entrepreneurial scene is booming, with a recent surge in new business filings. This trend underscores the state’s potential for business success. If you’re considering starting a business, our guide can help you form a Limited Liability Company in Colorado. It provides clear, step-by-step instructions, and, most importantly, it highlights the essential factors that can contribute to your business’s success.
Step 1: Name your Colorado LLC
Step 2: Choose a Registered Agent
Step 3: File an Articles of Organization
Step 4: Received a Certificate From the State
Step 5: Create an Operating Agreement
Step 6: Get an Employer Identification Number
Step 1: Name your Colorado LLC
When you start an LLC in Colorado, you must choose a name that meets Colorado’s naming requirements. Here’s what you need to know:
- Your business name must include “Limited Liability Company,” “LLC,” or “L.L.C.”
- Ensure your name is unique and not already used by another state business. You can check availability on the Secretary of State’s website.
- Avoid using words reserved for government agencies (e.g., State Department, CIA, FBI).
- Certain words (e.g., bank, lawyer, attorney) may require additional documentation and licensure.
Refer to this resource for a complete list of Colorado’s naming rules.
Additional considerations:
Reserve your name: You can reserve your LLC name through the Colorado Secretary of State’s website. The reservation fee is $25, payable online when filing. Once reserved, Colorado will hold your LLC name for 120 days, allowing you to complete the formation process. If you need additional time, you can file a Statement of Renewal of Reservation of Name to extend the reservation period.
Website Domain: Even if you need more time to make a website, it’s wise to grab your domain name early. Before you settle on your LLC name, check if the web address you want is available and fits your business to keep things consistent and protect your brand online.
Step 2: Choose a Registered Agent
In Colorado, choosing a registered agent for your LLC is mandatory. This agent is authorized to receive legal documents and notices on behalf of your LLC. Your registered agent can be a person (including yourself or an employee) or a company offering registered agent services. They must meet specific criteria:
- Entities must provide registered agent services.
- The agent must have a Colorado address.
- They must be available during regular business operations to accept documents on-site.
Step 3: File an Articles of Organization
To submit an Articles of Organization to the Colorado Secretary of State. You can access a sample form on the Secretary of State’s website. The articles should include the LLC’s name, street address, registered agent’s name and address, the LLC founder’s name and address, management structure (manager or members), a statement confirming at least one member, and the filer’s name and address.
You can complete the filing online, accompanied by a $50 fee.
Step 4: Received a Certificate From the State
After the LLC’s formation documents are approved, the state will issue a certificate confirming its existence. You can access this certificate by selecting “Filing History and Documents” on your LLC’s summary page. With this certificate, you can get an Employer Identification Number (EIN), business licenses, and a bank account.
Step 5: Create an Operating Agreement
Once you receive the state certificate, you must create an operating agreement. This agreement is a document that outlines how your company will operate and defines the roles of members and managers. Without one, default state rules apply.
Typically, an Operating Agreement includes:
- LLC name and address
- Registered agent’s name and address
- Company’s purpose
- Members and their contributions
- Profit and loss distribution
- Adding or removing members
- Management structure
- Taxation method
- Liability and indemnification clauses
Step 6: Get an Employer Identification Number
Your final step is to apply for an Employer Identification Number (EIN) with the IRS. Also known as a Federal Employer Identification Number (FEIN) and a Federal Tax Identification Number, the EIN is crucial for tax purposes, hiring employees, and opening a business bank account. You can obtain an EIN through the IRS website.
LLC State Guides
| Alabama | Kentucky | North Dakota |
| Alaska | Louisiana | Ohio |
| Arizona | Maine | Oklahoma |
| Arkansas | Maryland | Oregon |
| California | Massachusetts | Pennsylvania |
| Colorado | Michigan | Rhode Island |
| Connecticut | Minnesota | South Carolina |
| Delaware | Mississippi | South Dakota |
| District of Columbia | Missouri | Tennessee |
| Florida | Montana | Texas |
| Georgia | Nebraska | Utah |
| Hawaii | Nevada | Vermont |
| Idaho | New Hampshire | Virginia |
| Illinois | New Jersey | Washington |
| Indiana | New Mexico | West Virginia |
| Iowa | New York | Wisconsin |
| Kansas | North Carolina | Wyoming |
FAQs
What are the costs of starting an LLC in Colorado?
Starting an LLC in Colorado includes a fee of $50 for the Articles of Organization with the Secretary of State and additional expenses of $25 for name reservation, registered agent services, and other optional services.
How long does it take to get approved for an LLC in Colorado?
According to the Colorado Secretary of State, processing times typically take 2-3 business days if you file online, while filing by mail can take up to 20 days.
What are the advantages of starting an LLC in Colorado?
Creating a Colorado LLC, like other LLCs, offers significant advantages: It shields your assets from business losses and liabilities, provides pass-through taxation, and allows for flexible management.
Is there a form available to transfer my business name to another entity?
No. In Colorado, businesses cannot directly transfer their name to another entity. However, they can file to change their name or dissolve the entity, making the original name available for filing by another business.
