Colorado LLC

Form a Colorado LLC

Let LawInc.com set up your Colorado LLC, the right way. We keep things simple and allow you to easily form your Colorado Limited Liability Company online or over the phone (800-989-5294).

Colorado LLC formation is simple with LawInc.com. Once you submit your application, we check name availability, prepare your Articles of Organization and file your paperwork with the Colorado Secretary of State. As soon as your Colorado LLC is formed, we forward you your final paperwork.

A Colorado LLC can help protect your personal assets, such as your home, car or family savings. In the event of a lawsuit or if your business should fail, your personal assets cannot be touched, assuming you have properly formed, capitalized and maintained your LLC. This limited liability feature of a Colorado LLCs is not available in a sole proprietorship or general partnership, where the business owners are personally liable for all business debts.

Allow LawInc walk you through the Colorado Limited Liability Company formation process. Our clear, concise and easy to use website, helps keep things simple.

Colorado LLC Name

Colorado LLC Name Registration: The first step in forming a Colorado Limited Liability Company (LLC) is selecting the business name. Colorado LLC names:

  • Must contain with “Limited Liability Company,” “Ltd. Liability Co.,“ LLC,” “L.L.C,” “LC” or “L.C.”
  • Must be distinguishable from the name of any domestic or foreign LLC, corporation, non-profit corporation, limited partnership, limited liability partnership on file with the Colorado Secretary of State.

An available name may be reserved for a 120-day period.

LawInc.com permits you to choose up to three names and will conduct a name search for your Colorado LLC, prior to filing.

Colorado LLC Formation

Colorado LLC Filing Procedure: When forming a Colorado LLC, Colorado Articles of Organization must be filed with the Colorado Secretary of State.

Colorado LLC Publication: Colorado LLCs have no publication requirement.

Colorado LLC Organizers: An Colorado limited liability company can be formed by one (1) or more individuals, 18 years or older.

Colorado LLC Members: Colorado LLCs require 1 or more members. There is no residence or age requirement. Colorado LLC members are not required to be listed in the Articles of Organization.

Colorado LLC Duration: The period of duration of a limited liability company shall be perpetual unless the Colorado Articles of Organization place a limitation on the company’s existence or until dissolution or termination.

Colorado LLC Registered Agent: An Colorado LLC must maintain a registered agent and office to receive service of process in Colorado. The Colorado registered agent should be available, at an Colorado physical address, during normal business hours to accept important legal and tax documents on behalf of the Colorado LLC.

Colorado LLC Operating Agreement: After filing, it is highly advised that an operating agreement is drafted which dictates the LLC internal affairs and management. There is no set criteria, but an Colorado LLC operating agreement should reference how the Colorado LLC is managed, allocation of profits and losses and member capital contributions. The Colorado LLC operating agreement does not need to be filed.

Colorado LLC Post-Formation Requirements

Colorado LLC Annual Report: The Colorado Secretary of State requires that Colorado LLCs file an annual report on the anniversary month you that make your initial filing with the Secretary of State. You may file the Colorado annual report 2 months prior and 2 months after the anniversary month before being subject to a late fee. The annual report costs $100 by mail or $10 online. The Colorado registered agent will receive a postcard reminder 3 months before the due date. For more information, visit: https://www.ark.org/sos/franchise/index.php

Colorado LLC Taxes

Colorado LLC Taxation: Colorado LLCs are classified for Colorado tax purposes based on their federal income tax classification. The LLC tax rate for Colorado is variable, depending on Colorado taxable net income.

Colorado LLC Federal Income Tax: An advantage of the LLC is its tax flexibility. LLC members are allowed to select how the entity will be taxed. An LLC may be classified for federal income tax purposes as either a:

  • Sole proprietorship
  • Partnership, or
  • Corporation.

Single member LLCs are treated the same as sole proprietorships. Profits are reported on Schedule C as part of your individual 1040 tax return. Self-employment taxes on Colorado LLC net income must be paid just as you would with any self-employment business.

Most Colorado multi-member LLCs elect to be treated as partnerships by the IRS and file IRS Form 1065. On this form, Colorado LLC profits are reported and allocated to each of the owners according to the Colorado LLC’s operating agreement. Each owner is given a Schedule K-1, which shows each owner’s share of LLC income or loss. The owner then reports and pays taxes on this income on the owner’s annual 1040 income tax return. It is important to note that as with sole proprietorships, all Colorado LLC profits are taxed to the owners, even if they are not actually distributed by the LLC. This situation can arise when the LLC needs to use its profits to pay ongoing expenses.

If pass-through taxation is not desired, an LLC may elect to be taxed as a corporation by completing IRS Form 8832. If this election is made, the LLC is taxed as a C corporation by the federal government. Because the corporate income tax rates for the first $75,000 of corporate taxable income are lower than the individual income tax rates that apply to the taxable income of non-corporate taxpayers, it is possible a net income tax savings can result from this tax election. Additionally, an LLC can be taxed like an S corporation by filing IRS Form 2553.

Colorado LLC Federal Tax Identification Number/Employer Identification Number (EIN): The Federal Tax Identification Number, also known as the Employer Identification Number (EIN) is a number that is assigned to a business by the Internal Revenue Service. An EIN is like a Social Security Number for a business. It is a requisite for certain business functions such as opening bank accounts or hiring employees. An EIN is typically required if the Colorado LLC has more than one owner, or any employees.

Colorado LLC Dissolution

Colorado LLC Dissolution/Cancellation: In order to dissolve an Colorado LLC, the members or managers must file Articles of Dissolution with the Colorado Secretary of State. The fee for filing a Colorado Articles of Dissolution is $25