filing for a llc in colorado [With Pictures]

Last updated : Sept 28, 2022
Written by : Nicole Stands
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filing for a llc in colorado

How much does it cost to set up an LLC in Colorado?

How much does it cost to form an LLC in Colorado? The Colorado Secretary of State charges $50 to file the Articles of Organization. You can reserve your LLC name with the Colorado Secretary of State for $25.

What do I need to start a LLC in Colorado?

To form a Colorado LLC you'll need to file the Articles of Organization online with the Colorado Secretary of State, which costs $50. The Articles of Organization is the document that officially creates your Colorado limited liability company.

How long does it take to get an LLC in Colorado?

How long will it take to form my Colorado LLC? If you order the Basic or Standard package, we will file your paperwork with the Colorado Secretary of State within four to five business days and you'll receive your completed LLC documents one to two weeks later.

Does Colorado have an annual LLC fee?

Every year, you are required by the state of Colorado to file a periodic report. This legal requirement by the state keeps the state updated as to the status of your LLC. The annual fee, as of this writing, for periodic report filing is $10 per year.

What is the disadvantage of an LLC?

Disadvantages of creating an LLC States charge an initial formation fee. Many states also impose ongoing fees, such as annual report and/or franchise tax fees. Check with your Secretary of State's office. Transferable ownership. Ownership in an LLC is often harder to transfer than with a corporation.

Do LLC file tax returns in Colorado?

Filing Requirements & Due Date Any corporation, partnership, joint venture, common trust fund, limited association, pool or working agreement, limited liability company or any other combination of persons or interests, that is required to file a federal income tax return, must file a Colorado Income Tax Return.

Why should I use an LLC?

The main advantage to an LLC is in the name: limited liability protection. Owners' personal assets can be protected from business debts and lawsuits against the business when an owner uses an LLC to do business. An LLC can have one owner (known as a “member”) or many members.

What should I name my LLC?

  • Make It Legal. The most important thing when you're choosing an LLC name is to make sure it's legal.
  • Make It Memorable. You want your LLC name to be something people can remember.
  • Make It Meaningful.
  • Make It Original.
  • Make It Distinctive.
  • Make It Domain Name Ready.
  • Make It Social Media Friendly.

How do I set up a single member LLC in Colorado?

  1. Name Your SMLLC.
  2. File Articles of Organization.
  3. Prepare an Operating Agreement.
  4. Do You Need an EIN?
  5. Register With the Department of Revenue.
  6. Obtain Business Licenses.
  7. File Your Annual (Periodic) Report.

Should I pay myself a salary from my LLC?

Do I need to pay myself a salary? If you're a single-member LLC, you simply take a draw or distribution. There's no need to pay yourself as an employee. If you're a part of a multi-member LLC, you can also pay yourself by taking a draw as long as your LLC is a partnership.

Can I be my own registered agent?

You can act as your own Registered Agent for a corporation or LLC as long as you have a physical street address in the state where your corporation or LLC is formed. The actual corporation or LLC being formed, however, cannot name itself as its own Registered Agent.

What is the best place to get an LLC?

  • Best Overall: ZenBusiness.
  • Most Affordable: Incfile.
  • Best for Legal Services: Rocket Lawyer.
  • Best for Small Business: Northwest Registered Agent.
  • Best for Entrepreneurs: Hashtag Legal.
  • Best for Online Business: LegalZoom.
  • Best for Real Estate Investing: Inc Authority.

How much is a Colorado Ein?

Every LLC in the U.S. should obtain a unique Employer Identification Number (EIN) from the Internal Revenue Service. You'll use it when you open a business bank account, file taxes and pay employees. It's available at no cost from the IRS, or you can have Incfile obtain one for you.

How much is a Colorado business license?

How Much Does a Business License Cost in Colorado? In the state of Colorado, the price for a standard business operating license can vary from city to city and some cities even exempt smaller businesses from paying any fees. The cost ranges from $15 to $30 on the low end and several hundred on the high end.

How often do you have to renew your LLC in Colorado?

Annual (Periodic) Report The State of Colorado requires you to file a periodic report annually for your LLC. You must file the report online at the SOS website. The report is due during the three-month period beginning with the first day of the anniversary month of your LLC's formation.

Why is LLC may not beneficial?

Profits subject to social security and medicare taxes. In some circumstances, owners of an LLC may end up paying more taxes than owners of a corporation. Salaries and profits of an LLC are subject to self-employment taxes, currently equal to a combined 15.3%.

How is LLC taxed?

Working of LLC Taxes For the purposes of federal income tax, LLCs are treated as pass-through entities, which means that LLCs themselves do not pay taxes on their business income. It is rather its members who pay the taxes on their share of LLC's profits.

What are the tax benefits of having an LLC?

  • LLCs avoid double taxation while enjoying personal liability protection.
  • LLC allows a small business owner tax deduction.
  • Self-employment taxes are required.
  • All profits are taxed regardless of income.
  • Qualified Business Income deduction (QBI)
  • Health insurance.
  • Disability insurance.

How much tax does an LLC pay in Colorado?

As LLCs are pass-through entities, the owners of the LLC will pay the flat Colorado income tax rate of 4.63% on the profits. This is different from corporation as it avoids double taxation because the LLC and the owners are considered a single legal entity.

Can LLC Get tax Refund?

Do LLCs get tax refunds? Generally, no. However, LLCs can elect to be treated like C corporations for tax purposes by filing Form 8832. If an LLC elects C corporation status and makes quarterly estimated payments higher than its tax liability for the year, the LLC can receive a tax refund.

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filing for a llc in colorado

Comment by Kip Martorella

Thanks for this great article

Thanks for your comment Kip Martorella, have a nice day.
- Nicole Stands, Staff Member

Comment by Ethan

are you wondering how to start an llc in colorado today you will learn about the most common ways to start your business including the correct forms you'll need how to register your llc critical naming requirements and all other vital tips and tricks then as a bonus later on in the video i will reveal to you a trustworthy registered agent who will help set up your llc for free so make sure to stick with me until the end the state of colorado like other states has several specific llc requirements there are three main ways you can start an llc in colorado first is the diy or do-it-yourself process where you mostly depend on colorado state's website the second way is hiring a professional service that practically offers more efficiency and security in the process of creating your llc while the third one is hiring an attorney we will skip the attorney hiring portion because that's expensive and most business owners won't need that service first let's take a look at the steps required for starting an llc on your own step one name your business before anything else you will have to think of the llc's legal business name each llc in colorado must have a distinct llc name that is not currently in use you must include the terms limited liability company or an abbreviation such as llc you cannot include phrases such as a corporation which would lead people to believe you are a different business organization knowing if your business name is taken or not is very easy just go to google and type in the words business entity records colorado secretary of state and click the first search result i also have the link in the description below for your convenience it will lead you to a landing page of business entity records in colorado scroll down a little and you will see some search options which make checking the availability of your business name easier generally you can click the first option entity name and type in your business name for example i am typing a very common business name here best dentist which will give you a list of existing business names a unique business name will say no matches found just like this random name i typed in keep in mind that the division of revenue doesn't check names for trademark compliance it's ultimately up to you and your business attorney to ensure that your llc's name doesn't infringe on any other company's rights step two colorado requires llc to have a registered agent an agent has a physical address a po box is not allowed and is available during business hours this agent will serve as the llc's primary point of contact for receiving key legal papers tax warnings summons subpoenas and so on you can register yourself or someone in your company but i highly recommend getting a professional registered agent as they have more knowledge by protecting your company in cases of possible cracks while i agree that family members or friends are reliable enough to be trusted as your llc's agent you are more comfortable sleeping at night knowing that your agent is professional and trained to manage legal documents to avoid problems concerning court schedules filing reports with the secretary of state etc besides hiring a professional registered agent is not expensive in fact there are companies that offer a free registered agent as part of your package when you form your llc through them inc file is a company i recommend which has this free service inc file offers a free registered agent on your first year of signing up for their service during that free year you can already take advantage of a professional and trained agent to receive legal documents on your behalf a dashboard where you can always access the correspondence that your agent has received as well as email notifications and automatic forwarding whenever your registered agent receives documents step 3 filing the colorado llc certificate of formation after that you must file the certificate of formation with the colorado secretary of state's business entities division and the office of the judge of probate to officially incorporate a domestic colorado limited liability company the colorado state filing cost for llcs is 50 for both domestic llcs and 100 for foreign llcs basically a domestic llc means that you are already a resident of colorado and you want to build a business in colorado foreign llc on the other hand is for people living outside colorado but wanting to start a business or a franchise of their business in colorado with that said most businesses would be applying for a domestic llc you can file the certificate of formation online or by mailing it to the secretary of state expect the llc certification process to take approximately two weeks this is three to four days for the judge of probate and ten days for the secretary of state step four prepare an operating agreement now an operating agreement is a good idea to have in place with the other members if your llc has more than one member although a limited liability company operating agreement is not necessary for colorado your operating agreement should clarify how your company or business will handle big picture issues such as allocating earnings and losses and dissolving the company your operating agreement should also cover the transfer of membership interest profits or losses and distributions initial investments decision-making powers voting rights and management and lastly dissolving the business step 5 file periodic annual reports colorado llcs must file a periodic report with the colorado secretary of state each year the report must be filed online at the secretary of state website the filing fee is ten dollars the periodic reports are due during the three-month period beginning on the first day of the anniversary month of the month when the llc was formed for example if you formed your sm llc on june 15th the report would be due each subsequent year between june 1st and august 31st you can also file the report up to two months early you may sign up for email notification from the secretary of state to alert you when the periodic report is due for more information see colorado llc annual report and tax requirements step 6 obtain an ein an ein or employer identification number is a federal tax id issued by the irs your ein is used by them to readily identify your firm and tax filings all colorado firms pay a business privilege tax and the state requires you to have an ein to file you may also be required to provide your ein when opening a bank account or applying for municipal permits or licenses obtaining an ein is a slightly longer process compared to their previous steps i'm sure you know anything to do with the irs is confusing first you have to have complete knowledge of your llc such as your company information managing member information business address business information company details and even critical information regarding vehicular assets and federal excise taxes this is another reason why getting a professional registered agent is way more convenient as they can do this for you as part of their service now let's talk about the second option to form an llc and that

Thanks Ethan your participation is very much appreciated
- Nicole Stands

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