How to Start an LLC in Colorado
Starting an LLC in Colorado requires choosing a business name, designating a registered agent, and filing Articles of Organization with the Colorado Secretary of State ($50) online. Once you file, your LLC will be approved instantly, but you’ll need to take a few more steps to get it ready to do business.
Create a CO LLC in 5 Steps:
Step 1: Name Your Colorado LLC
You’ll need a business name that meets Colorado’s rules (found in C.R.S. 7-90-601). These rules are summarized below, along with some other naming considerations:
What are Colorado’s business name requirements?
- Your LLC name must use an entity identifier (LLC, L.L.C., Ltd. Liability Co., etc.).
- The name you choose must be unique in the state. It can not be the same as, or too similar to, any other entity’s name (or any other reserved entity name) that is currently active in Colorado.
How do I know if my LLC name is unique in the state?
- You can check the availability of the LLC name you want using the Colorado Business Database Search. Here, you’ll find a list of all business entities in the state. If you find a name that exactly (or closely) matches the LLC name you want, you’ll need to change it to avoid a rejection of your LLC application filing.
Are others using the name online?
- Once you have created a name that’s available in the state, check to see if it’s also available online as a domain name or social media handle. Using the same or similar name with different media and advertising platforms will give your business a strong brand recognition to attract more clients to your products and/or services.
Can you register the name as a trademark?
- You can apply to have your business name federally trademarked to protect its uniqueness nationwide. When we form your LLC, you can add a trademark registration filing to your order. Our trademark team will work with you through the application process, and our trademark attorneys are here to help your application overcome any obstacles to registration that might be found.
Can an LLC go by a different name in Colorado?
Yes. If you use a different business name than the one on your formation documents, that name is called a trade name or “doing business as” name. In Colorado, trade names do not have to be unique.
While you can’t use the same name as another registered business entity, you can use a trade name that another business is using as a trade name. Any LLC using a trade name needs to file a Statement of Trade Name of a Reporting Entity online with the Colorado Secretary of State.
Step 2: Choose a Colorado Registered Agent
The next step in preparing to file your LLC is finding a Colorado registered agent. This is an individual or company tasked with receiving legal mail on behalf of your business in person and getting that mail to you ASAP.
LLCs in Colorado are required by law to appoint and maintain a registered agent. At a minimum, your registered agent must:
- Have a physical address in Colorado
- Be present at that address during business hours
Registered agents serve as the public’s point of contact for your business. You can be your own registered agent, but this requires listing your private information on the public record and risking being served a lawsuit in front of customers or clients. For this reason, many business owners decide to appoint a professional registered agent.
Can you use a PO box for a registered agent in Colorado?
No. You must list a physical address in Colorado for your registered agent’s address. Otherwise, your paperwork will be rejected.
Step 3: File Colorado Articles of Organization
Once you have your business name and your registered agent, you’re ready to fill out your Colorado Articles of Organization. This is the paperwork that, once approved by the Colorado Secretary of State, officially forms your LLC. Here’s what you need to provide:
1
Business name
Make sure it’s unique in Colorado and includes a designator like “LLC” or “Limited Liability Company.”
2
Principal Office Address
Must be a physical address. When you hire us, we provide our office address for use here.
3
Mailing Address
If you want to get mail at a different address, you can list that address here.
4
Registered Agent
List the name and address of the individual (or entity) who will accept service of process on behalf of your LLC in person (or hire us and we’ll list our info here).
5
Registered Agent Consent
This is just confirmation that your registered agent has consented to fulfill this role.
6
Management
Specify whether your LLC will be managed by members (owners) or managers.
7
At least one member
Your LLC must have at least one member (owner)—check the box to confirm this is true.
8
Delayed effective date
Here, you can choose to add a future start date for your LLC. Most people skip this and have their LLC start immediately.
Note that everything on this form becomes part of the public record, easily found online. We recommend minimizing the use of personal information (like home addresses) wherever possible. When you hire us, we provide a business address you can use in these fields in place of your own.
How much does it cost to set up an LLC in Colorado?
The cost to form an LLC in Colorado is $50. The $50 is due when you file your Articles of Organization with the state. After that, you’ll have to pay $10 every year to file a periodic report.
How long does it take to get an LLC approved in Colorado?
Colorado approves filings immediately, as soon as you pay. Colorado only accepts online LLC filings.
Ready to create your LLC in Colorado?
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Step 4: Set Up Business Operations
Once you submit your Articles of Organization to the Colorado Secretary of State, you’ll have an LLC. But to truly set up your LLC and ensure it’s ready to do business and protect your personal assets, you’ll need to do more.
Adopt an LLC Operating Agreement.
While not required by law in Colorado, keeping an operating agreement on record internally is vital for the health of your LLC. It’s a contract that defines how your LLC will do everything important, like voting, distributing money, handling disputes, transferring membership, and more.
When you hire us, we provide an operating agreement you can customize to suit your needs.
Get an EIN from the IRS.
This is a tax ID you can get through the IRS online. You’ll need one when you open your business bank account or if you’d like to hire employees.
Open a Business Bank Account.
In order to protect your liability protection, you need to keep your business finances separate from your personal ones. To do this, you need a business bank account. This is where your members will make their initial contributions. To start one, just go to the bank of your choosing with your EIN and operating agreement.
Register your Domain Name.
Even if you’re not ready to build a business website, it’s smart to register your domain name now (if it’s available). Your domain name doesn’t have to match your business name exactly—in fact, if your business name is long or has any tricky words in it, it might be better to come up with a domain name that complements your business name instead.
Step 5: File BOI Report
The Beneficial Ownership Information (BOI) Report is a mandatory federal filing that discloses ownership information to the federal government. The BOI Report is a result of the Corporate Transparency Act, a new law which aims to combat money laundering and other financial crimes.
Business formed in 2024 have 90 days from registration to file the BOI Report. That window shrinks to 30 days for business that form in 2025. We can take care of this requirement for you when you hire us to form your LLC.
Frequently Asked Questions
How much does an EIN cost?
Applying for an Employer Identification Number (EIN) with the IRS is free and only takes a few minutes to complete online.
Does Colorado require an operating agreement?
No. Colorado’s statutes do not require an LLC to adopt an operating agreement, but having one on file internally is crucial. Without one, your LLC defaults automatically to Colorado’s state statutes (which may not be the best fit for your business).
How do I get a business email address?
When you hire us to act as your registered agent or start an LLC, we’ll provide up to ten email addresses ending in the domain name of your choosing for $5 per month.
How are Colorado LLCs taxed?
By default, Colorado LLCs are taxed as pass-through entities. In a pass-through entity, all income “passes through” the business to the owners, who then report the income on their own individual income tax returns. This allows pass-through entities to avoid the so-called double taxation that a C Corporation pays on profit (the corporate tax rate and personal income taxes).
But LLCs can also opt to be taxed differently, either as an S Corp or a C Corp. This flexibility is one of the main perks of starting an LLC.
When is the Colorado Periodic Report due?
The Colorado Periodic Report is a yearly report that all LLCs are required by law to file with the Colorado Secretary of State. It serves to keep the state up-to-date on your LLC’s information. You need to file your Colorado Periodic Report within a four month window around your LLC’s anniversary month (two months before or two months after).
When you hire us, we’ll take care of this filing for you at no extra cost. You pay Colorado’s $25 fee only.