Easy Guidelines To Start An LLC In Colorado
A Limited Liability Company offers cover to the promoters from the liabilities of the company. The personal assets of the promoters are safeguarded from the liabilities of the company. It is easy to promote an LLC in Colorado. The investment environment in the state is conducive for new businesses as more people are willing to try new products and services.
One of the important primary tasks before you start the business is to fill the Colorado Tax Id application. The EIN number is required to start the other process of starting a business like opening bank accounts, getting credit and applying for other licenses and permits.
Step by Step guidelines to form an LLC in Colorado
- Select a suitable name for your LLC. You should adhere to the Colorado naming guidelines and should not contain any prohibited words. Choose a name that is easy to remember and creates an easy connect with the prospective customers. Check for the availability of the name. You can do a name search on the State of Colorado website to determine the availability of a name. Also make sure, the domain name to suit your company name is available. You have to mention the exact name as mentioned in the registration while filling up the Colorado Tax Id application.
- The next step is to choose a registered agent for your LLC. The registered agent will be responsible to send and receive all the legal documentation on behalf of the company. You have to choose a resident of Colorado or an organization registered in Colorado as your registered agent.
- The next important step is to file the Articles of Incorporation with the state. While filing the articles of incorporation, you have to mention whether your company will be managed by members or a manager. The Articles of Incorporation can be filed online.
- Creating an operating agreement outlining the ownership and the general operating procedures of the company is a safe practice, though it is not legally required in the state of Colorado.
- The last and final step is to obtain an EIN, if you have already not done so. An EIN or Employee Identification Number is issued by the IRS and is a legally required for operating an LLC. The Colorado Tax ID application can be filled online on the website of the IRS.
These are the simple steps for the formation of LLC. After you form an LLC, there are certain important functions like separation of personal assets, obtaining state tax ID, setting up of proper accounting systems, obtaining the required permits and licenses required for your business, getting proper insurance and hiring employees, to start the business operations.