How To In Colorado, form an limited liability company.
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: Pick the name of the company.
You have to pick a name that isn't used.You can check to make sure that the name of your company isn't being used.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."LLC" stands for "Limited Liability Company."
Step 2: Determine who the members of your company will be.
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: There is a manager for the company.
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.
In Colorado, you can either be a member or a manager.The management structure you want is what you choose.All of the owners of a business will be involved in the management of that business.When you are creating a single-member limited liability company, 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, 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 should 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 is possible.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 of incorporation.An operating agreement does not need to be written.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 to have its own tax ID.You need 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: You can choose a registered agent.
A legal representative in the state is called a registered agent.If you live in 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" to enter the name that you decided on.If you choose a name that's already in use, the system won't let you go any further.
Step 10: The name and address of the principal's office are required.
The name of the person who is forming the company 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, you'll fill in the information in this section.The principal's name and address can be entered.
Step 12: There is a section on the "true name and address" of the person forming the limited liability company.
The address you entered was your business address.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.
If you check the box, you should have one member.
Step 15: If you have more documents to upload, select the appropriate option.
You'll need some documents to complete the registration process for your 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, then you don't need to do that.
Step 16: The effective date is selected.
You will probably want to form a limited liability company immediately.If that is the case, you don't need to take any action under the "Delayed Effective Date" section.If you want to put off your formation for a while, just click the "No" option and enter the effective date.
Step 17: You can check the appropriate option to sign up for email notifications.
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: Again, enter your name and address.
There is another section for the "true name and address" of the person who is filing the document.In the last section, enter that information.
Step 19: Follow the instructions on the screen if you click "Submit".
Some instructions may be different at this point.
Step 20: You have to pay the filing fee.
When you finish the form, you'll be prompted for payment options.The fee is $50 as of this writing.
Step 21: You should file your annual reports.
The Secretary of State requires your company to file annual reports every year.If the agent's name and address have changed since you last filed the report must state that.It is important that you file the reports on time.