Your Guide to Forming a Colorado LLC
Starting a Colorado LLC can be time-consuming and overwhelming. And if you mess up filing your Articles of Organization, maybe even a little, ahem, rocky.
Our guide will set you on the path to smooth LLC formation in the Centennial State. Here’s how to make creating your LLC quick and easy:
- How to Set Up Your Colorado LLC
- After Creating Your LLC: Next Steps
- Maintaining Your LLC: Reports and Taxes
- Benefits of Starting an LLC in CO
- Types of LLCs in Colorado
- Checklist: Keeping You and Your LLC Safe
- Colorado LLC FAQs
Get your Articles of Organization filed with the CO Secretary of State in record time using our LLC Formation service. You’ll get a year of our famous $25 registered agent service, the privacy perks of our business address, and access to the services you need as you grow, such as mail forwarding and virtual office.
LLC Formation Service
- $125 + state fees
What’s Included:
- Fast formation filing
- A year of Registered Agent Service
- Free use of our Colorado business address to increase your privacy
- Enrollment in Compliance Service to help protect your business
- Secure online account, accessible from anywhere
- Legal document scans and immediate uploads
- 3 free regular mail scans
- Free library of business documents & resources
- Free attorney-drafted LLC operating agreement
- Lifetime customer service from local Colorado filing experts
- Access to additional filings (EIN, DBA) and services (company formation, virtual office)
How to Set Up Your Colorado LLC
With a strong and diverse economy, Colorado is a great state to start an LLC. While Colorado has a business-friendly environment, starting a business is always a little stressful.
Here are the steps you’ll need to follow for LLC formation:
1. Select a business name that adheres to CO naming rules
2. Designate a registered agent to accept legal notices on behalf of your LLC
3. File your Articles of Organization with the Colorado Secretary of State
4. Draft your LLC’s operating agreement to keep your owners organized and protected
When you’ve completed these steps, you’ll have formed a Colorado LLC under state law.
1. Select Your LLC’s Business Name
Selecting your business name may seem like a no-brainer, but you’ll have to make sure that the name you choose will be accepted by the state.
Naming your LLC
Naming rules:
Your name must:
- Contain an entity identifier such as “LLC,” “ltd.,” or “limited liability company”
- Be distinguishable from all other business entity names the CO SOS has on record
Having a distinguishable name is important for legal purposes and helps prevent your customers from confusing your business with another.
Name availability search:
To find out if the name you want is available, use the Colorado Name Availability Search.
The great thing about Colorado’s Name Availability Search is that it not only tells you if your name is available or not, but also if the name you’ve searched for is similar to other names in the database.
Knowing about these similar names can allow you to choose a different, more distinct name to make branding and marketing your business easier.
More LLC name information
Name reservation:
Name reservation comes in handy when you decide on your LLC name before you’re ready to file your formation paperwork. Reserving your name keeps it from being snapped up by another company while you’re getting prepared to file.
To reserve a name in Colorado, you’ll need to submit a Statement of Reservation of Name ($25 filing fee) with the SOS. You can easily file your reservation online. The CO SOS’s business portal will have you conduct a search to verify that your desired name is available before directing you to the online form.
Trade Name (DBA):
A Trade Name, as known as a DBA, or “doing business as” name, allows your business to operate under a name other than your registered business name.
Trade Names are great if you want to operate several different branches or business lines under one LLC. For example, maybe you have three very different products and want to sell them all on three different websites under three different business names without having three separate LLCs. Trade Names can make this possible.
To get a Trade Name in Colorado, you need to file a Statement of Trade Name of Reporting Entity with the CO SOS ($20 filing fee). You can also file your Trade Name form online. Note that Colorado Trade Names aren’t exclusive, so you and any number of other businesses could use the same Trade Name. However, your Trade Name must be distinguishable from all registered business entity names on record.
Domain Name:
If you’re planning on having a website, another component to consider is your domain name, also called a URL or web address. Many business owners like their web address to match or be similar to their business name.
Take us, for example: our business name is “Rocky Mountain Registered Agent LLC” and our domain name is “www.RockyMountainRegisteredAgent.com.” And because our domain name matches our business name, it’s easier to remember and for our customers to find us online.
When brainstorming names, be sure to do a domain search to make sure you can get a web address that works for your business.
2. Designate a Registered Agent
As mandated by state law (CO CRS 7-90-701), all LLCs must appoint a registered agent. The name and address of your registered agent must be listed on your Articles of Organization, so you need to figure out who will serve as your registered agent before filing.
What a registered agent does
A registered agent accepts legal and state documents on behalf of your business, including service of process for lawsuits and Periodic Report notifications from the state. Essentially, a registered agent’s role is to ensure your business receives all state and legal notices in a timely manner.
Colorado registered agent requirements
In Colorado, your registered agent can be an individual or company that provides registered agent service. Individuals must be at least 18 years old. All registered agents need to be physically located in Colorado and available to receive documents during normal business hours.
Advantages of hiring a registered agent service
While you can serve as your own registered agent or appoint someone else, like an employee or your lawyer, there are distinct benefits to hiring a registered agent service.
Privacy:
If you work from a home office and serve as your own registered agent, you’ll have to put your residential address as your registered agent address on your formation documents.
Everything on your formation documents goes on the public record, so your home address will be accessible to anyone who searches for your business from the CO Business Database Search, which can open you up to scammers and junk mail.
Using a service gives you a measure of protection from prying eyes.
Professionalism:
Receiving service of process can be a stressful situation. If you list your registered agent address as your home or workplace, you could be served in front of neighbors or clients, which can be embarrassing and damage your professional image.
Hiring a service helps you maintain your credibility. Service of process agents won’t show up at your door, and we’ll inform you of all notices immediately after they are received.
Convenience:
One of the requirements for a registered agent is that they must be available year-round at a specific address during normal business hours.
If you or the person you designated as your registered agent needs to travel for work, takes a vacation, or, heck, just pops out to run an errand, you could miss an important notice or receive it much later than you’d like.
With a service, your documents are always received the first time they are delivered, preventing your business from suffering the negative consequences of late or missed notice.
3. File Your Articles of Organization
To form your LLC under Colorado law, you’ll need to file Articles of Organization with the CO Secretary of State.
Colorado Articles of Organization requirements
All of the information included on your Articles becomes part of the public record. Here’s the information you need to provide:
- LLC Name
- Principal business address (must be a physical street address)
- Mailing address (cannot be a PO Box)
- Registered agent name, address, and consent
- Management structure: member-managed (managed by owners) or manager-managed (managed by hired managers)
- Confirmation that your LLC has at least one member (checkbox)
- The name and address of your organizer (the person filing your Articles)
- The names and address of the person(s) caused the Articles to be filed (typically the owner(s))
- Any optional provisions you’d like to add
- Delayed effective date (optional)
You also have the ability to choose to receive notifications from the state by email or text.
For a detailed explanation of the filing requirements, check out the SOS’s Checklist for Filing a Limited Liability Company.
Cost and methods of filing your Articles of Organization
There’s a $50 filing fee for your Colorado LLC Articles of Organization. Your Articles must be filed online through the CO SOS’s online LLC filing tool. Filings are typically processed within 24 hours.
4. Draft Your LLC’s Operating Agreement
Your LLC operating agreement is an internal document–you don’t have to file it with the state—that describes the organizational structure of your LLC and contains your LLC’s governing rules. For example, your operating agreement should clearly lay out your ownership interest, how the company is managed, and the rights and responsibilities of your members.
Reasons to have an operating agreement
While having a written operating agreement isn’t legally required in Colorado, it’s highly recommended that you have one to adequately protect your LLC and the rights of your members.
Formalize verbal agreements
Verbal agreements can be vague and difficult to remember accurately–and worse, they may be deliberately misconstrued or “forgotten.” Plus, they don’t hold up in court.
If you have multiple members, putting your operating agreement on paper helps prevent future misunderstandings and ensure that all members are treated fairly should conflict arise.
It’s especially important to clearly describe each member’s initial contribution to the company and ownership interest, along with the responsibilities and rights of all members.
Keep your LLC running smoothly
An operating agreement explains your LLC’s management structure, which can provide your LLC with much-needed clarity.
Your operating agreement can outline how big decisions are made, including whether your LLC requires a majority or unanimous vote to approve an action. In drafting your operating agreement, you can go so far as to assign specific tasks to specific members.
All of this makes it easier to run your LLC because you won’t have to waste time figuring out which manager is responsible for making bank deposits or what to do in common situations like taking on a new member. Having all your rules and regulations clearly laid out also allows your LLC to act quickly in times of crisis or opportunity.
Protect your LLC and members in court
An operating agreement is very useful if you end up in legal trouble. This goes for both single- and multi-member LLCs.
First, listing your members and their ownership interests in the agreement can prove ownership of the LLC, even if all of the members’ names aren’t on your Articles of Organization.
Second, including a financial section that details your LLC’s bank account info, company assets, and bookkeeping procedures can help demonstrate that no inappropriate commingling of members’ personal and business funds (which is known as “piercing the corporate veil”) has occurred. This helps maintain your limited liability status.
Lastly, in cases where one member sues the business or other LLC members, your operating agreement’s information on ownership interest and on member rights and duties can help protect all members.
What to include in your operating agreement
You can choose what to include or not include in your operating agreement—this document can be highly personalized to your LLC and your member’s wishes.
Here’s what’s typically in an LLC operating agreement:
- Basic information about your LLC, such as your company name and address, your registered agent, and your jurisdiction of formation
- Ownership information, such as member names and addresses, the initial contributions (financial, intellectual, or otherwise) each member made in becoming a member and how those contributions convert to ownership interest, how to add or remove members, as well as how profits and losses are distributed among members
- Management information, such as whether your LLC is member- or manager-managed, member/manager rights and responsibilities, meeting schedules and rules, voting procedures, manager compensation, and procedures for replacing managers
- Financial information, such as your tax classification, company bank accounts and loans, bookkeeping procedures, and your company’s assets (property, vehicles, interest in other companies, and so on)
- Dispute resolution, such as how to address disagreements or disputes among members
- Amendments, such as how to approve amendments or even a schedule for making updates to your operating agreement
- Merger or Dissolution, such as any events that may trigger dissolution (like bankruptcy or losing good standing with the state), how assets will be liquidated, distributed, or transferred
How to create your operating agreement
You can draft your own agreement, hire someone to write it for you, or use a template. Having a lawyer draft your operating agreement from scratch can be expensive, but it is a good idea to have an attorney review your agreement.
We include free attorney-drafted LLC operating agreement templates with our LLC Formation Service because we know a strong operating agreement is a crucial aspect of your LLC’s success (other business formation companies often charge $100 or more for an operating agreement).
The Fastest, Easiest Way to Form Your LLC
Our LLC Formation Service includes one year of our $25 Registered Agent Service, plus free operating agreement templates, and free use of our Colorado business address.
Get convenience and privacy with Rocky Mountain Registered Agent LLC.
After Creating Your LLC: Next Steps
Once your Articles of Organization have been accepted by the state, you’ve officially got a Colorado LLC–congratulations! However, you’re not quite ready to start doing business.
There are a few more essential steps to making sure your new company is on solid ground before you’re fully operational.
1. Get an Employer Identification Number (EIN) from the IRS
After forming your LLC, you’ll need to get an EIN from the IRS. An EIN is also sometimes referred to as a FEIN, or Federal Employer Identification Number, and is a 9-digit number that you (and any employees) will use to identify your business when filing federal taxes.
Having an EIN is required for all multi-member LLCs and all LLCs with employees. If you have a single-member LLC, you can use your social security number in place of your EIN, but be aware some financial institutions will require an EIN to open a business bank account or give your LLC a loan.
You can apply for an EIN online or by fax or mail. Applying online is the quickest and easiest route. There’s no fee to get an EIN.
2. Open a business bank account
Even if you’re a single-member LLC, having a separate business bank account will make keeping your personal and business funds separate much easier. This is important because if you have legal issues and your finances haven’t been kept separate, you could lose your limited liability status.
When shopping for a place to open your business bank account, there are a few things to look for:
- High interest rates (APY) for savings and checking
- Low interest rates (APR) for lines of credit
- Low minimum account balance and transaction fees
- Low or no monthly or annual fees
When you go to open your account, you may need to bring your EIN, a copy of your Articles of Organization, business licenses, a copy of your operating agreement, and personal identification. Check with your bank for an exact list.
3. Obtain all required business licenses and permits
The licenses and permits you’ll need will depend on the type of work you do and the type of business you run. If you’re in a field that requires special training and is overseen by a regulatory board (for example, maybe you’re an acupuncturist or a plumber), you’ll probably need a professional license.
Professional licenses are issued by the agencies that regulate those specific industries. To find information about regulated industries and how to get a license, you can use the Colorado Department of Regulatory Agencies (DORA) Services Page and DORA’s More Regulatory Services Page.
Some licenses and permits, such as liquor and marijuana licenses, must be obtained through your city or county.
4. Purchase business insurance
Whether or not you need business insurance, and what kind, is something that also depends on your industry. High-risk fields may require specialized liability insurance. Otherwise, general liability insurance may be adequate.
Other insurance considerations include auto insurance if you have a company vehicle and workers’ compensation insurance if you have employees.
5. Create a business plan
Having a business plan will help keep your business on target. Unlike your operating agreement, which covers your LLC’s organization and daily operations, your business plan is a way to prepare for the future.
Some detailed business plans are pages long and include in-depth research, but if you’re not up for that, a one-page overview that covers your priorities can work just as well.
Typical elements that you might include are: a description of your company mission, services and products, goals, analysis of your market, strategies for advertising and growth, and financial projections.
6. Establish your LLC online with a website & domain name
A key aspect of branding and marketing your business is establishing your business online so that potential customers can easily find and contact you.
This includes creating a website, preferably with a domain name (web address) that matches or is similar to your business name.
You can also use social media to engage with your customers and get a Google Business Profile to up your credibility.
Maintaining Your LLC: Reports & Taxes
File Your Periodic Reports
After forming your LLC, you’re not done filing paperwork with the state. Every year, you must submit a Periodic Report to the Colorado Secretary of State to ensure that your principal office address and registered agent information are up to date.
What happens if you don’t file your Periodic Report
If you don’t file your report, your LLC will be marked Delinquent. You’ll lose your good standing with the state and you could lose the rights to your business name.
After 400 days of delinquency, your business name will become available for any other business to take. If another business takes your name, you’ll have to file Articles of Amendment or a Statement of Change to update your name. You’ll also be forced to update your business name on your website, marketing materials, and so on.
Falling out of good standing also makes it difficult to register to do business in another state and secure funding from a financial institution.
To restore your LLC from delinquency, you’ll need to file a Statement Curing Delinquency (filing fee $100). If your LLC is delinquent for 5 years or more, you may face additional steps and fees to restore it.
How to file your Periodic Report
1. Find out when your Periodic Report is due by searching for your entity in the CO Business Database Search. Once you identify and click on your business, you’ll find your due date under “Periodic Report Month” on the “Summary” page for your LLC.
2. Verify that you are authorized to make changes to your business record by clicking the “Confirm” button under the basic information about your LLC.
3. You’ll be taken to a list of documents that you can file. “File Periodic Report” should be at the top of the list unless you’ve already filed for the year.
4. Click on “File Periodic Report” and log in to the secure business filing portal to complete the document. There is a $25 filing fee.
5. On the report, you can confirm or update your address or registered agent information.
Our Compliance Service
To protect our clients from the consequences of delinquency, we include enrollment in our Compliance Service with LLC Formation Service. We’ll send you a reminder when your Periodic Report due date is coming up, and then file ahead of time on your behalf ($100 + state fee, charged only at filing).
With Compliance Service, your Periodic Report gets filed on time every year without you even having to think about it, and your business name is safe. If you prefer to file on your own, just cancel the service in your online account.
Pay Your Taxes
Staying on top of your taxes is important to keep your business (and yourself) out of financial and legal trouble. As an LLC member, you may be responsible for federal, state, and local taxes.
While income taxes are due once a year, state and local sales tax may need to be paid on a monthly or quarterly basis, depending on your LLC’s tax liability.
Federal income taxes
LLCs do not pay federal taxes as an entity. By default, LLCs are taxed as “pass-through” entities, meaning that the LLC’s profits and losses “pass through” the business to its owners. The owners then pay personal income tax on their earnings.
Single-member LLCs simply file personal income tax return with the IRS using Form 1040. Typically, you’ll attach Schedule C, but you may need to use a different schedule form. For details, refer to the IRS’s information on filing as a single-member LLC.
Multi-member LLCs file as a partnership (unless you elect to be taxed as a C-corp or S-corp). First, you’ll file Form 1065 and issue a Schedule K-1 form to each LLC member. Then, your members file their personal income tax returns using Form 1040. For details, refer to the IRS’s information on filing as a partnership.
State income taxes
If you file as a partnership with the IRS, you’ll also file as a partnership in Colorado. (If you change your federal tax election, you’ll also file as that tax election at the state level.)
You’ll need to report your LLC’s income by filing form DR 0106K with the Colorado Department of Revenue (DOR). To file online, create an account with the DOR’s Revenue Online tax portal. After reporting your LLC income, you and any other LLC members will file your personal state income tax returns.
Local income taxes
Check with your local county or city tax collector to find out if there are any local general business taxes or taxes for specific types of businesses.
Sales and Use tax
If your business sells taxable goods or services, your LLC will need to collect and pay Sales and Use Tax.
The general sales tax rate in Colorado is 2.9%, but it’s very likely that you’ll also have local sales tax at the county and/or city level on top of the state rate. For example, in Denver, the combined sales tax rate is 9.15% including state and county sales tax.
Additionally, you may need to collect and pay higher sales tax in specific industries, such as marijuana retail.
Sales and Use tax can be complicated, but luckily you can find a strong collection of resources on the DOR’s Sales and Use Tax page. This includes training videos, guides, and the Sales and Use Tax Simplification (SUTS) Lookup Tool, which allows you to search combined sales tax rates by street address.
Benefits of Starting an LLC in Colorado
Why form an LLC rather than a sole proprietorship, general partnership, or corporation?
- Liability Protection for Members
Going with a business where you don’t have to file any paperwork with the state (like a sole proprietorship or general partnership) sounds nice, but it doesn’t give you liability protection. If your business falls into debt or legal trouble, debt collectors could go after your personal bank accounts, property, vehicles, and other assets. An LLC is the quickest and easiest way to get liability protection. - Flexible Management Options
Forming a corporation requires you to appoint a board of directors, who then elect officers to manage the business. Every major decision about the business must go through the board, which can be time-consuming and generate a lot of paperwork. When you own an LLC, you get to decide who manages the business and how. - No Double Taxation
Corporations are required to pay both Colorado and federal corporate tax. Then, the owners of a corporation also pay personal income tax on their earnings from the business. LLCs don’t pay taxes as an entity (unless you choose to change your tax election), so an LLC’s profits are taxed only once, when LLC members pay personal income tax on their income from the business.
Types of LLCs in Colorado
As you research forming your LLC, you may notice that there’s more than one type of LLC out there. What’s the difference, and what kind of LLC will you form?
LLC (Limited Liability Company)
When you create an LLC, there aren’t any rules about how many owners (referred to as “members”) you need or who will manage your business. This is what makes the LLC structure ideal for small businesses.
Whatever type of LLC you form, be sure to create a strong operating agreement that reinforces LLC members’ ownership rights and clearly explains member and manager duties so that you can avoid needless conflict.
Single-Member LLC:
As the name indicates, a single-member LLC has one owner. If you’re working solo, forming a single-member LLC is a smart alternative to doing business as a sole proprietor because you’ll get liability protection and increase your credibility.
Multi-Member LLC:
A multi-member LLC has at least two members. Exactly how many is up to you. Legally, there’s no limit to the number of owners an LLC can have. Forming a multi-member LLC rather than a corporation gives you more management flexibility and tax options.
Member-Managed LLC:
A member-managed LLC is managed by one or more of the LLC’s owners. This approach keeps members in tune with the business and can also be more cost-effective.
Manager-Managed LLC:
When LLC members hire managers to manage their LLC, this is called a manager-managed LLC. Having a manager-managed LLC frees up members to attend to other aspects of the business or to be involved in multiple businesses at a time.
FLLC (Foreign Limited Liability Company)
A Foreign LLC, or FLLC, refers to an LLC formed in a different state that has registered with Colorado Secretary of State and gotten the authority to do business in Colorado. Likewise, if you register your Colorado LLC to do business in another state, your LLC will be an FLLC in that state. Registering as an FLLC allows you to expand your business and its reach without having to form an entirely new LLC each state where you want to operate.
PLLC (Professional Limited Liability Company)
If you work in a profession where a state agency regulates your industry, you may have the option to form a Professional LLC (PLLC). For example, maybe you’re an accountant, a medical practitioner, or a social worker. Starting a PLLC rather than an LLC can raise your credibility. Depending on your field, there may be specific ownership or insurance requirements for a PLLC. For more information on PLLCs, visit the CO SOS’s Professional Service Companies Business FAQs page.
Checklist: Keeping You & Your LLC Safe
Many business owners form an LLC for liability protection, but there are additional steps you can take to preserve your limited liability status and your personal privacy.
Here’s a checklist of common ways to minimize financial and legal risk for your company and its members.
Never miss or receive a legal notice late
✓ Hire a registered agent service to make sure someone is always on hand to receive service of process and state notices for your LLC when they are delivered
Protect your privacy where possible
✓ Don’t serve as your own registered agent. First, your registered agent address will go on your formation paperwork and therefore on the public record. Second, you could be served at home or at your place of business, which isn’t ideal
✓ Use a business address (like our commercial business address) on your formation paperwork to protect your home address if you work from a home office or don’t have a set office space
✓ Use a dedicated business phone line and email so that you’re not giving customers and the public at large access to your personal lines of communication
Protect your rights as an owner
✓ Create a strong operating agreement that can be used to prove your ownership of your LLC and, if you have multiple members, includes detailed descriptions of each member’s initial contribution and ownership interest
Keep your personal and business finances separate
✓ Create business bank account and don’t mix your personal and business funds
✓ Include information about your financials, assets, and bookkeeping in your operating agreement
Stay on top of state and federal requirements
✓ File your Periodic Report before the due date each year
✓ Pay your taxes on time
✓ Keep up with licensing requirements
Be prepared in case of accidents or legal entanglements
✓ Purchase liability insurance
✓ Keep up with financial and insurance requirements for your employees (if you have any)
✓ Trademark any phrases or logos you don’t want other businesses to steal
✓ Hire a business lawyer to review your operating agreement and any contracts you sign
Get registered agent service, a professional Colorado business address, and free operating agreement with LLC Formation Service. Plus, add phone service at checkout (90-day free trial)!
Colorado LLC FAQs
Answers to the most common questions we receive about Colorado LLC formation and our LLC Formation Service.
How much does it cost to get an LLC in Colorado?
The filing fee to form a Colorado LLC is $50. However, the total cost of starting your LLC will depend on a range of factors. You may also pay for registered agent service, business licenses, business insurance, legal fees if you have a lawyer draft or review your operating agreement, business consulting fees, renting or purchasing an office or building, manufacturing, and marketing & advertising.
Do I need to form an LLC?
Whether or not you need to form an LLC is a question only you—and maybe your lawyer—can answer. But if you don’t feel like forming a business entity by registering with the state and are instead considering doing business as a sole proprietor or general partnership, remember that while these business types save you paperwork and a formation fee, they also put your personal assets at risk.
If you want liability protection, you need to form an LLC or other business entity with the state (such as a corporation). An LLC is often the quickest and easiest way to get liability protection without locking you into a rigid management structure.
Do I need a Colorado business license?
You won’t need to get a general business license to operate in Colorado. Depending on your industry and the type of business you own, you may need additional licenses or permits, such as a license to practice medicine or law, a cosmetology license, or a liquor license.
You can review regulated industries and required licenses through the Colorado Department of Regulatory Agencies (DORA). It’s also a good idea to check your local city or county’s website to find out if there are any local license or permit requirements.
Can I use a PO Box for my business address in Colorado?
On your formation paperwork, both the principal and mailing address for your business must be a street address. You cannot use a PO Box.
What does a registered agent do?
A registered agent receives legal and state notices on behalf of your business. This includes service of process (such as lawsuits) and state reminders or notifications regarding your business. Having a registered agent is required so that the state is always able to get important legal and state documents to your business in a timely manner.
What is the Periodic Report?
The Periodic Report is a yearly filing that all registered Colorado business entities, including LLCs, must file every year. To find out when your Periodic Report is due, you’ll need to look up your LLC record using the SOS’s Business Database Search. You can file during the two months preceding or following your reporting month without any penalties.
On your report, you can update your business address and your registered agent name and address, if necessary. This way, the information the state has on file for your LLC remains up to date. The fee to file your report is $25.
What happens if I don’t file my Periodic Report?
If you don’t file your Periodic Report, your LLC will be marked as Delinquent. After 400 days of your LLC being marked Delinquent, your business name becomes available for other businesses to register, and you may lose your name. If that happens, you’ll have to choose a new name and file Articles of Amendment or a Statement of Change to update your information.
To restore your LLC once it’s been marked Delinquent, you must file a Statement Curing Delinquency (filing fee $100). If you are Delinquent for more than 5 years, you’ll have to submit more information, including an Affidavit attesting that you have the authority to file a Statement of Curing Delinquency on behalf of your business and a copy of your government-issued photo ID.
What is Compliance Service?
To prevent your LLC from suffering the negative consequences of missing your Periodic Report filing, we include enrollment in Compliance Service with LLC Formation Service.
How does it work? We notify you when your due date is approaching and then file your report on behalf of your business, well ahead of time ($100 plus the state fee, charged at filing). You’ll stay in compliance without having to think about it.
If you prefer to file on your own, just cancel the service in your account.
How do I pay LLC taxes in Colorado?
Your LLC itself doesn’t have to pay any taxes. LLCs are classified as “pass-through” entities, meaning that the profits and losses pass through the company to the owners. The owners then pay personal income tax on those profits. State income tax in Colorado is a flat 4.25%. You’ll also have to pay your personal federal income tax.
How do I remove an LLC member?
No one foresees having to remove an LLC member when the company is being formed, but life changes and disagreements happen. As part of forming your LLC, you’ll create an operating agreement, which contains the rules and regulations for running your LLC.
Your operating agreement should include the procedure for removing an LLC member, including how to handle re-distribution of ownership interest. Once this process is complete, you must update the state’s record of your LLC ownership information by filing an Amend Articles of Organization form ($25 filing fee).
How do I dissolve my LLC?
When you’re forming your LLC, you may not want to think about the day it’ll come to an end. However, your operating agreement should contain a provision for when and how your LLC may be dissolved. (For example, some LLCs are triggered to dissolve if the business goes bankrupt.)
Make sure your operating agreement contains detailed instructions on how the LLC’s assets will be distributed among your members. To officially dissolve your LLC with the state, you need to file a Dissolve a Limited Liability Company form ($10 filing fee).