Start an LLC in Colorado with Tailor Brands for Free

Before you can launch your business formally, you must find and select a business name for it. This name must reflect your business and should also comply with the naming regulations of the state of Colorado. For instance, you have to add the word “LLC” to your name. 

Additionally, the name you select must not be in use by any other business in the state of Colorado. You would have to run a search to check if the potential business name for your LLC in Colorado isn’t in use already.

Once you’ve chosen a unique business name and find that it’s not in use, it’s best to reserve it so that you’ve got full rights over the name until your business is registered. If you don’t reserve it, someone else could pick it before you start your business.

The next best thing that’s worth reserving is your website’s domain name. You should consider buying or reserving a domain name that’s the same as your business name to ensure no one else can pick your brand name and make it difficult for you to get yours.

It’s legally required for every LLC in Colorado to have a Registered Agent in the state. They can be an individual or an entity that provides Registered Agent services. Also, they must have a physical address in Colorado and should be available there during work hours.

They’ll serve as the government’s point of contact for communicating any legal matters to you. The Registered Agent is required to receive documents and business communication on your behalf and should pass them on to you.

If you already have operations outside Colorado, you’ll be required to register your LLC as a foreign LLC. But if you’re establishing your LLC in Colorado from scratch, you will be launching a domestic LLC.

Additionally, you’ll have to determine how you want the LLC to be managed. You can choose between member and manager-run LLCs. Member-managed LLCs are run by the owners, while manager-managed LLCs are operated by managers appointed by the business.

Colorado law doesn’t require LLCs operating in the state to have an Operating Agreement. However, it’s always better to have this legal document in place so you can use it to avoid any disputes that may arise in the future.

The Operating Agreement of your LLC in Colorado essentially outlines the rights and responsibilities of each member of your business. It also lists dissolution criteria, management guidelines, and more.

After you’ve outlined your LLC in Colorado’s Operating Agreement, you should move to file your Articles of Organization with the Colorado Secretary of State. You have to first prepare them by entering some basic information like your name, Registered Agent information, and LLC details.

Once you’ve prepared your Articles of Organization, you can file them online, in-person, or through mail. You’ll have to pay a filing fee of $50 when you submit your Articles of Organization. This fee is comparatively much lower than in many other states.

After you’ve filed your Articles of Organization for owning an LLC in Colorado, you’ll receive a certificate from the state that confirms that your LLC formally exists in the state. Once you receive it, you’ll need to apply for a tax ID for your business. 

The Employer Identification Number or tax ID is a necessity if you intend to hire employees or want a business bank account. Think of it as a social security number for your business. You can get one from the Internal Revenue Service (IRS).

Once you’ve established your LLC in Colorado, it’s important to open a business bank account so you can send and receive payments. This is a crucial step in the process of starting a business as you need to keep your LLC’s finances separate from personal ones to maintain the limited liability cover.

To open your business account, you’ll need to find a reliable banking partner and submit the required documents. These documents could include your LLC in Colorado formation certificate, EIN, and others.

Depending on the type of business you want to establish, you might have to get some licenses and permits from your state or local government. You may also need to acquire federal licenses and permits.

For instance, if you intend to sell medicines, you’d have to get the related licenses. You’ll have to check the requirements for these permits and legal documents before you launch your business operations and get them to avoid any legal issues.

An LLC in Colorado can access pass-through taxation features, meaning your business’s profits and losses will be taxed at the taxpayer level and not at the business level. However, you have the option to get taxed differently if you wish. 

You can choose to get your LLC taxed as an S-Corporation by filing Form 8832. You can then file Form 2553 to complete the process. This way, you’ll be treated as an employee of your S-Corp and won’t have to pay any self-employment taxes.

If you want to run your LLC under a Doing Business As or DBA name, you also have the option to do that in Colorado. This way, you can use a single Colorado LLC to operate different businesses in the state. 

All you have to do is file for a Doing Business As (DBA) name or assumed name. This fictitious name can help you run your business with a more memorable name. You aren’t required to include words like “LLC” in your DBA as well.

If you want your business or LLC in Colorado to have a unique identity that no one else can copy, you should consider applying for a trademark. You can choose between a state or federal trademark, depending on the level of protection you want. State trademark protects your brand within Colorado and federal trademark works at a national level. 

You can register the state trademark with Colorado’s trademark office. Alternatively, you can get a federal trademark by applying for it at the US Patent and Trademark Office (USPTO).

Starting your LLC in Colorado is one thing. But once your LLC is operational, it’s essential that you remain compliant with the state’s laws and regulations. Even if you’re starting small as a startup, you need to have legal documents for startups. Failure to do so would drop your LLC from good standing and might even lead to a penalty or more severe consequences.

An example of a compliance requirement for having an LLC in Colorado is filing periodic annual reports. These have to be filed every year and you must also pay a $10 filing fee for the same. You’d also have to make amendments to your LLC whenever you make any significant changes to it. Maintaining compliance can help you get a certificate of good standing when you want it.

Tailor Brands’ Lite plan is a no-cost solution for entrepreneurs seeking a straightforward way to establish their LLC in Colorado. Here’s what it includes:

• LLC formation: Tailor Brands manages the required legal paperwork, saving you time and ensuring everything is completed accurately.

• Faster processing: Your LLC in Colorado will be officially formed within two business days, giving you a head start on building your business.

• Business coaching: Access expert advice on crucial topics like tax compliance, digital marketing, and operational strategies.

While this plan skips extras like compliance tracking, it’s an excellent choice for those who are confident in managing additional tasks independently.

Price: Free

The Essential plan from Tailor Brands is appealing to those who want a combination of speed, support, and affordability. Here are the features of this plan: 

• Expedited LLC formation: Your LLC will be fully established within two business days — the same quick turnaround as the Lite plan.

• Annual compliance support: Stay compliant as Tailor Brands’ experts take care of mandatory report filings and key deadlines.

• Operating agreement assistance: You can gain access to resources to craft a customized operating agreement.

• Business coaching program: Available across all plans, this program offers expert advice on taxes, compliance, and digital marketing.

• $30 Amazon gift card: A thoughtful bonus to help offset initial costs or purchase office essentials for your new venture.

The Essential plan is a great choice for first-time business owners, appealing to those who prefer professional support to manage critical tasks like compliance and document creation. 

Price: $199/year

Tailor Brands’ Elite plan is the ultimate package for entrepreneurs who aim to launch a fully-fledged business identity right from the start. Aside from all the features in the Essential plan, here’s what’s included in this plan:

• Upgraded $50 Amazon gift card: An even more generous bonus to help cover initial business costs.

• 1-year free domain: Secure a professional web address to establish your online identity.

• DIY website builder: Design your website or online store with user-friendly templates tailored to your business needs.

• Free logo designs: Choose from eight professional logos to create a consistent brand image.

• Digital business card: Conveniently share your contact details with customers using a single link.

• Social media post maker: Easily create branded content your target audience can resonate with. 

• Business card design tools: Craft custom business cards that leave a lasting impression. 

The Elite plan provides everything you need to launch your LLC in Colorado and build a strong brand identity. 

Price: $249/year