A limited liability company protects business owners from personal liability for debts and claims.The Colorado limited liability company act allows you to form an entity in the state.
Step 1: You can choose the name of the company.
You have to choose a name that isn't used.You can check to make sure that the name of your company isn't used with the Colorado search tool.One of the following terms must be in the name of your limited liability company."Limited Liability Co." is a liability company.L.L.C is a Liability Co."Limited Liability Company."
Step 2: Pick out the members of your company.
The owners are called members.They are the people who have a financial interest in the company that goes beyond the interests of an employee or customer.
Step 3: The manager for the company should be selected.
The CEO of the company is a manager.The person who will set the strategic direction of the company and oversee day-to-day operations from an upper management perspective is the one.The manager of the company doesn't have to be a member, but it's a good idea.
Step 4: There is a distinction between member managed and manager managed.
You can have either a member managed or a manager managed company in Colorado.The management structure you want is what you choose.All of the owners of a member-managed business will be involved in the management and operation of that business.When you are creating a single-member LLC, this is the most common selection.If some of your owners are passive investors who don't want to be involved in the day-to-day operation of the business, you should choose a manager-managed company.If you choose this option, you can hire someone else to run the business while you become a passive investor.
Step 5: An operating agreement can be created.
The economic and governance structure of your company is covered in an operating agreement.It is similar to having shareholder agreements wrapped into a single document.A statement of social purpose may be included.There are provisions in an operating agreement in Colorado that deal with the affairs of the company.Your limited liability company will be bound by its terms once you write an operating agreement.You can enter into an operating agreement before or after you file your articles.An operating agreement does not need to be in writing.You can either write the agreement out or not.
Step 6: You have to apply for an EIN Number.
There is a separate legal entity for your business.It will need a tax ID or EIN.You have to apply for a EIN Number from the IRS.If you sell goods or collect taxes, you need to register with the Colorado Department of Revenue.If you own and operate a sole member limited liability company, you don't need an EIN.
Step 7: A registered agent can be selected.
A legal representative in the state is called a registered agent.If you live in the state of Colorado, you can be the registered agent.You will need someone else to be a registered agent on your behalf.You can find a list of registered agents in Colorado by searching for "Colorado registered agent".
Step 8: The Colorado Secretary of State has a website.
You can fill out the online form at the Secretary of State's site.
Step 9: The company name should be entered in the field.
Click "Next" if you want to enter the name that you decided on.If you pick a name that's already in use, the system won't let you go any further.
Step 10: The principal's office name and address should be completed.
The name of the person is the principal.Enter your business name and address here if that's you.You can enter your personal address if your business address is the same.
Step 11: The agent's name and address should be filled out.
If you selected a registered agent in the step above, you'll fill out the information in this section.You can enter the principal's name and address.
Step 12: There is a section on the "true name and address" of the person.
The address you entered was for your business.You can enter your personal address here.If your business address is the same as your personal address, it's okay to duplicate it.
Step 13: Check the management option.
One of the members will manage the company if it is member managed.If you're going to hire a manager who isn't a member, you should check the radio button.
Step 14: Click on the option if you want to know if your company has at least one member.
You should check the box if you want to have one member.
Step 15: If you have more documents to upload, choose the appropriate option.
Some legal or identification documents are needed to complete the registration process for a limited liability company.You can upload those documents if you select "yes" here.An operating agreement is one of the examples of additional documents.Chances are good that you won't need to upload any documents.If someone from the Secretary of State's office tells you that additional documentation is required, you'll probably only need to do that.
Step 16: The effective date should be selected.
You will probably want to form a limited liability company immediately.If that's the case, you don't need to take any action under the "Delayed Effective Date" section.Click the "No" option if you want to put off your formation for a while.
Step 17: To sign up for email notifications, check the appropriate option.
If you want the Colorado Secretary of State to let you know when there are due dates or events affecting your business, you need to select "Yes" under "Email Address" and enter the appropriate email address.
Step 18: You can enter your name and address again.
There is another section for the "true name and address" of the person who is filing the document.The information should be entered in the last section.
Step 19: Click "Submit" and follow the instructions on the screen.
Some instructions may be different at this point.
Step 20: You have to pay the filing fee.
When you finish the form, you will be prompted for payment options.The fee is $50 at this time.
Step 21: You should file annual reports.
The Secretary of State requires your company to file annual reports every year.If the agent's name and address have changed, the report must state that.It is important that you file the reports on time.