How to Set Up an LLC in Colorado

We’ve put together a free step-by-step guide on how to set up an LLC in Colorado. We want you to have a clear idea of how to set up and manage an LLC for your state. We’ve tried to make sure you have the information you need right at your fingertips. Each step has instructions and links to the sites for you to fill out the forms in the correct order. So, let’s set up your Colorado LLC right now! 

A few points to remember before setting up your LLC in Arkansas

When you set up an LLC in Colorado you’ll need a few things before you get started.  This section will help you get your checklist in order.

A Unique Business Name 

Every business in the state must be unique. You’ll need to search for a Colorado LLC name. Go to the sites below to make sure yours is not taken. 

• Colorado Secretary of State: Name Availability Search 

• Colorado Secretary of State: Business Database Search 

An LLC Designator 

Once you’ve chosen a unique business name you’ll need to decide on your LLC designator.  When you set up your LLC in Colorado.  You can chose one of the ones below.

• LLC (most common) 
• L.L.C. 
• Limited Liability Company 

A Registered Agent 

In most states, a registered agent is a person or a company that accepts “Service of Process” for your Colorado LLC. A registered agent will receive any subpoenas, notices, and other legal, and tax documents sent to your business by the Colorado Department of Revenue. 

If you’re opening a business in Colorado but you aren’t a resident, you’ll need to get a registered agent in that state. The requirements for a registered agent are as follows: 

An Individual: 

• Must be 18 and be a resident of the state 
• Must be authorized to do business in the state. 
• Must have a physical street address located in Colorado 

 A Company or your LLC 

• Must be authorized to do business in the state 

If you meet the above criteria, you can be your own registered agent. Or you can set up a friend or family member to be your registered agent. 

You can also hire a commercial Registered Agent. A company that provides their name and address to receive legal documents from the state. 

Step 1: Reserve Your Business Name

If your not ready to start your business or LLC right away but want to reserve your business name you can do this for 120 days prior to setting up your LLC in Colorado.

You’ll need to reserve your name at the  Colorado Secretary of State: Start a new business or by mail.  

There is no fee to reserve your name just make sure that your name is unique.

Step 2: File Your Articles of Organization in Colorado

Setting up an LLC in Colorado is easy, especially for single-member LLCs. Just go directly to the Colorado Secretary of State: File a Form.    

You can do the name reservation and the Articles of Organization at the same time.  Easy peasy.  

Paper filing is not available in Colorado. You can register your LLC online and you will get instant approval.  

Fees: In Colorado, the cost of setting up your LLC and filing the Articles of Organization is $50.00.   

Step 3: Complete Your Colorado LLC Operating Agreement 

An operating agreement is a key document used by LLCs, and partnerships. It outlines the business’ financial and functional decisions including rules, regulations, and provisions. This describes how your LLC will operate internally. For more information on operating agreements, you can check out the Small Business Administration’s article on basic operating agreements. 

Step 4: Get Your Federal Tax ID Number (EIN) 

Once your Colorado LLC has been approved it’s time to get your Federal Tax ID Number from the IRS.   

Your EIN is the social security number of your business.  Keep it well protected.  You’ll use this number to open bank accounts, file tax documents, apply for loans and many other uses.  It also protects your social security number when doing business with other businesses like merchant accounts, 1099s received etc. 

To apply for your EIN you can go to IRS EIN/Tax ID Application.  Make sure you pick the correct Business Entity Type.   

Taxes, Permits, and Licensing in California

To do business in Coloradoyou will need to file tax returns, and hold permits and licenses in your county or city.  remember that you still have to pay your taxes and meet obligations at the Colorado Department of Revenue. 

Putting it All Together

Now that you can set up an LLC in Colorado online it shouldn’t take more than an hour or two to get up and running.  The Colorado Secretary of State’s website is very easy to navigate and following the five steps above will help you get your talents and ideas to market faster.