Start an LLC in Colorado with Inc Authority 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 business name search and check if the name you have in mind 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 all Colorado LLCs 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 from scratch in the state of Colorado, 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 one in place so you can use it to avoid any disputes that may arise in the future.

The Operating Agreement of your Colorado LLC 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 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 many other states.

After you’ve filed your Articles of Organization, 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 Colorado LLC, it’s important to open a business bank account so you can send and receive payments. This is a crucial step in the process 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 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 before you launch your business operations and get them to avoid any legal issues.

LLCs in Colorado offer 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 different name than the business 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 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. Failing 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 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.

When you opt for the free plan of Inc Authority, here’s what you can get:

• Checking business name: When you engage the services of Inc Authority, you’ll be able to search for your business name for free. This way, you can find a unique name for your business with ease.

• Free Registered Agent: Even with the free plan of Inc Authority, you get complimentary Registered Agent services. This would otherwise cost you anywhere between $100 to $250 annually with other services.

• Digital documentation: It’s crucial to keep your business formation documents safe. Inc Authority provides a digital locker where your documents will be stored for easy access.

• Tax advice: When you engage Inc Authority for your LLC in Colorado, they’ll help with tax planning for your business for best results. 

• Filing Form 2553: Inc Authority also helps you file your Form 2553 with the Secretary of State if you want your Colorado LLC to be taxed as an S-Corporation. 

• Funding assistance: Along with LLC formation, you can also get consultation for your LLC’s funding requirements. This way, you’ll know the best sources for funding your growth.

There’s enough value in the free plan to consider it for launching your new LLC in Colorado. But if you want more services, the paid plans are a better choice.

Price: Free

This plan offers everything in the Free plan, plus:

• Operating Agreement preparation: Inc Authority gives you numerous templates to help you create your Operating Agreement. 

• Ownership certificates: If you want to issue ownership certificates for yourself or other members of your Colorado LLC, Inc Authority can help you with that through templates. You can edit them to prepare your certificates.

• Get EIN/Tax ID: If you want to hire employees for your Colorado LLC, you must file for an EIN/tax ID for it. While this service isn’t available in the Free plan, Inc Authority helps you with it in the Starter plan so you can concentrate on more important tasks.

• Corporate forms and documents package: As mentioned earlier, you’ll likely need to get numerous permits and licenses based on the type of business you open. Inc Authority makes this process simpler by providing you with corporate forms and legal documents that can help you draft this important paperwork.

• Annual compliance assistance: The best part about the Starter plan is that Inc Authority handholds you throughout the duration of your LLC’s existence. They send you annual compliance notifications so you can remain in good standing with the state.

• In-depth tax consultation: While the Free plan offers tax consultation as well, you get even more detailed assistance when you opt for the Starter package. Inc Authority will find the best solutions for your business to save on taxes. 

• Web domain + 5 business email IDs: It’s important to create a website for your Colorado LLC to maintain online visibility. Typically, that’d mean that you’d have to search for a domain name while finalizing your business name. But with the Starter plan, Inc Authority provides the domain to you along with five email addresses.

Price: Custom

Fasttrack is the highest pricing tier for Inc Authority. It has everything in the Starter plan, plus:

• Dedicated advisor: The Fasttrack plan gives you a dedicated customer success advisor who serves as your single point of contact with the firm. They’ll help you understand the entire LLC formation process and also be available to answer any questions you might have. This service will be available until your LLC is formed. 

• Dedicated banking specialist: When you opt for the Fasttrack plan, you also get a dedicated banking specialist who will help you open a business bank account for your Colorado LLC. They’ll also simplify the process of keeping your business accounts separate from personal ones. This way, you won’t have to lose your liability protection unnecessarily. 

• Personalized business advisory: Yet another feature of this plan is that you get personalized assistance from experts for running your LLC in Colorado. The best part here is that these experts are from varied fields so you will find someone to assist you irrespective of the business you intend to start. Such guidance can help you scale your business with ease. 

• Quick filing: The most significant advantage of the Fasttrack plan is that you get expedited LLC filing services. Inc Authority will put your documents together and file for your LLC on the same day. This way, the only time that you have to wait for would be the duration for approval from the Secretary of State. 

The quick filing in addition to personalized assistance and handholding makes the Fasttrack plan a great option for entrepreneurs who want to get their LLC up and running quickly. The assistance also means you’ll always be one step ahead of your competitors who are just starting out.

Price: Custom