Limited liability companies are the leading choice for small businesses. They provide unique benefits while simultaneously being easy to form and maintain. These benefits include providing tax savings and asset protection. Colorado, luckily, provides the added benefit of anonymous ownership. When you use our service we enter our information not yours. This means your name, address, and phone will not appear online.
Articles of Organization: These list the bare minimum required to start your company. The company name, principal office, mailing address, registered agent, organizer, and whether the LLC is manager or member managed. If we form your company, then we enter our information here. This keeps your name and personal information from being a simple Google search away.
Operating Agreement: This agreement lays out the relationship between members. It details ownership percentages and best practices for record keeping procedure, risk management, accounting and more. For a single member LLC it is less important. This is because there is no one to contest ownership and no protection is needed from other members. Banks still request operating agreements, though, so we have included one.
Organizational Minutes: These are the minutes to the company's first meeting. There are a few common formalities such as agreeing to organize the company. An initial manager is appointed for these duties who immediately resigns and hands power to the true owners or managers.
Resolution to Open Bank Account: We complete this document with all your information. All that's left is to name the bank you want to open your account with. Complete and sign this paperwork for taking to the bank.
Question: Do I require an EIN?
If you want the full benefit of your LLC, then yes you must have an Employer Identification Number. An LLC must maintain its own bank account and an EIN is required to open the account. You will also need one to file taxes, hire employees and vendors require them too. In short, there's no way around getting one. We can do it for you, or you may follow our step-by-step EIN guide here.
Question: What is the corporate veil?
The corporate veil is the legal concept that company is its own person. It may enter into contracts and is liable for its own debts. This separation between the company and its owners also protects the owners personal assets. Only their initial contribution into the company can be lost. A corporate creditor cannot pierce the corporate veil, and seize personal assets, except for in cases of fraud.
Question: What documents do I receive?
You will receive everything you need to begin doing business. This includes your articles of organization, operating agreement, organizational minutes, resolution to open a bank account and more. We complete these documents for you, rather than some providers who supply templates that must be edited.
Question: Are there any annual requirements?
Colorado's Secretary of State only requires you to file a periodic (annual) report and maintain a registered agent in Colorado. The annual report is simple to file, or you may have us do it to keep your name and signature out of public records.
Question: Should I choose a corporation?
Only sometimes will forming a corporation be a better choice. Their ability to issue preferred shares, which may have enhanced voting or economic rights, is one advantage. Rarely will small businesses find the increased cost and complexity worthwhile though. Many mistakenly choose a corporation solely for the sub-chapter s taxation election. In fact, limited liability companies may also be taxed as an s-corp in addition to a partnership, disregarded entity or c-corporation.
Question: Should I remain a sole-proprietorship?
Sole-props are when you run a company under your name, or only a Trade Name/DBA, rather than forming a company. You will pay MORE in taxes and receive no protection in case of an accident or bad debt. Even those pursuing what seem simple "hobbies" should considering forming an LLC. Learn more about incorporating in Colorado here.
Our goal is simple - to provide a simple one stop shop for doing business in Colorado. Whether you're in a cottage industry, or manage millions, we are happy to help. Our site was designed by entrepreneurs who know first hand the difficulties of starting a company. Fret no more - let us do the work.
Selecting and forming a business entity can be challenging. View our page on incorporating in Colorado to learn about the difference between Sole-Proprietorships, LLCs and Corporations. After forming an LLC or Corporation, you may use our filings services or follow our DIY guides and pre-filled forms. Whether you need an EIN, or need to file for a DBA, we believe in providing the choice of doing it yourself, or letting us handle the paperwork and doing it for you.
Colorado's statutes require the company name end with a variation of LLC. This includes LLC, Limited Liability Company, Limited, Ltd., Limited Liability Co., etc. If you do not add one of these to the end of your company name, then by default we will add "LLC" to the end.
We don't over-complicate things. We file everything correctly, the first time, so you have one less thing to worry about. Our transparent pricing means you won't be left second guessing your purchase. After that, we will only bug you again when your period report is due next year. It really is that easy.
Our goal is to provide a one stop shop for your Colorado business needs. Whether you need help with forming an llc, obtaining an EIN, or handling mail - we are happy to help.