With its higher national average median income per household and a rising position in the top 10 wealthiest states in the US, starting an LLC in Colorado can be highly profitable and advantageous. The state also welcomes and encourages entrepreneurship through its various incentives, dedicated fund programs, and micro-loans for small businesses.
So let’s find out how to start an LLC in Colorado:
Name Your Business
Every business needs a name as its identity. You may already have a name for your business, but if you don’t, consider using a business name generator for ideas or inspirations. Pick a few names you like and arrange them in preference order.
Next, see which ones comply with Colorado business name regulations. Tweak the names, so they comply and search for their availability. Pick the name that is the top most available name on your preference list.
Reserve the Selected Name
If you don’t want to lose the business name you selected by the time you are ready to start an LLC in Colorado, reserve it by filing the Statement of Reservation of Name. It is a form submitted to the Colorado Secretary of State, which reserves a business name for 120 days upon approval. There is a small fee for the application, but it’s worth the peace of mind and eases it brings.
Click here for instructions on how to file the Statement of Reservation of Name.
Provide a Business Address
Colorado requires every business to have a physical street address. While the address for a Colorado LLC can be out-of-state, it cannot be a P.O. Box.
Though you can submit your residential address for starting an LLC in Colorado from home, consider using a virtual mailbox service if you don’t have an office address. Getting a virtual mailbox address can protect your privacy and save you from the hassle of changing your LLC business address later on.
Name a Registered Agent
A registered agent is an official position for LLCs responsible for handling documents, filing paperwork, and representing the business. Naming a registered agent is essential to start an LLC in Colorado.
You can name yourself, a business partner, or even a professional registered service as your Colorado LLC registered agent. However, there are eligibility criteria for the position. The criteria dictate that the registered agent must:
Be 18 years or older
Authorized to conduct business in Colorado
Have a physical street address in the state
Click here for the full list of criteria. You must also note that naming a registered agent is a two-step process, meaning your LLC’s registered agent must formally accept the position to complete this step.
Prepare and File Articles of Organization
Articles of Organization is a form required by the Colorado Secretary of State to establish an LLC in the state. The information required by the form includes the following:
LLC street and mailing address
Name and contact information of the registered agent
LLC management mode (manager-managed vs. member-managed)
Names and signatures of the organizer
While some states allow articles of organization to be submitted through mail, you can only file them online in Colorado. However, starting an LLC in Colorado is considerably cheaper than in other states for the low filing fee for articles of organization.
Click here to file articles of organization for your LLC.
File the Annual Report
Articles of organization are only required once. But Colorado requires every LLC to file a report yearly, including the first year. Like the articles of organization, the annual report is also filed online and has a very small fee.
Register for EIN
EIN, i.e., Employer Identity Number, is a number provided to businesses by the Internal Revenue Service. Since businesses are established through the state authorities, the number confirms the registration of a business with the federal government. EIN is essential for businesses to hire employees, open a business bank account, and file taxes.
Registering for EIN does not cost anything. Click here to obtain an EIN for your business.
Prepare an Operating Agreement
An operating agreement is an instructions manual for a business. It outlines the procedures for business operations like recruitment, rules for scheduling meetings, making business decisions, adding or eliminating members, or dissolution of the business. It also includes details on members’ contributions and responsibilities, voting rights, profit sharing, etc.
An operating agreement is not essential for starting an LLC in Colorado. However, getting one can significantly benefit your business by quickly resolving unwarranted claims or demands.
Get a Website and Market Your Business
Getting a website and marketing your business may be the last step of starting an LLC in Colorado, but they are by no means the least. In fact, the importance of marking a business’s presence on digital platforms cannot be emphasized enough. Customers look for everything they want and need online. Hence, getting a website is essential to make your business appear legitimate and trustworthy. Similarly, marketing the business is essential to reach your target audience and convert them into customers.
So how can you do it?
Building a website is a multi-step process involving securing a host, buying a domain, building an interface, picking color schemes and fonts, adding visual content, writing copy, optimizing SEO, etc. On the other hand, marketing constantly requires you to create social media accounts and business profiles on platforms like Nextdoor and Yelp. It also requires brainstorming campaigns, creating content, running sponsored ads, and managing the various profiles.
If you don’t have prior experience to complete this step, make it easy for yourself by heading to Trady.com.
Trady.com is a website-building service dedicated to trades and home services companies. Building a website with Trady.com is easy, fast, and affordable. It allows you to add exclusive features like booking appointments and making payments online. Its end-to-end marketing services are also affordable and produce great results. You can manage your business website and its marketing on Trady.com through your smartphone in under twenty minutes.
Start with Trady.com’s 14-day free trial to discover more.