How to Set Up an LLC in Colorado
A step-by-step guide.
As I’ve discussed in a previous post, the smartest early move you can make is to form a Limited Liability Company (LLC). This legal structure provides liability protection, tax flexibility, and credibility while remaining easy to set up and manage.
Here’s a step-by-step guide to forming your Colorado LLC, with links to the official forms and resources you’ll need.
Step 1: Choose Your Business Name
Your LLC’s name must be distinguishable from other entities on file with the Colorado Secretary of State and not violate any other trademark. The name you chose should include “LLC,” “L.L.C.,” “Limited Liability Company,” or a similar designation.
1. Start with the USPTO
Use the U.S. Patent and Trademark Office’s TESS search tool:
TESS Search Tool
- Search exact matches and similar-sounding names
- Check for similar services or goods
2. Check Colorado Secretary of State
Search the Colorado Secretary of State’s business registry to see if another business is already using the name locally: Secretary of State Business Registry
Tip: You can reserve a name with the Colorado Secretary of State for 120 days by filing a Statement of Reservation of Name
3. Search Online
o Google it
o Check social media handles
o See if the .com or .co domain is available
Step 2: File Articles of Organization
You must file Articles of Organization with the Colorado Secretary of State to officially form your LLC. You can do that online by filling out a simple form and paying a small fee: Colorado Secretary of State – Form an LLC
Filing fee: $50 (as of this writing)
Processing time: Immediate confirmation once filed online
Step 3: Designate a Registered Agent
Your LLC must have a registered agent with a physical address in Colorado. A registered agent is simply a person authorized by your business to receive important legal documents. The registered agent can be you, your attorney, your accountant, a commercial registered agent service, or any other person over the age of 18. The key is to choose someone you trust to promptly send the legal papers to you and is at an address where someone will be available to receive legal papers during regular business hours.
You will include the name and address of your Registered Agent information when filing your Articles of Organization.
Step 4: Obtain a Federal Employer Identification Number
Most LLCs need a Federal Employer Identification Number (FEIN). You need an FEIN to open a business bank account, hire employees, and file taxes. Apply for an FEIN Online
The process is free and takes only a few minutes.
Keep a copy of the letter the IRS will mail you with your other important papers.
Step 5: Register for a Colorado Employer Tax ID
If you will have employees or sell tangible goods, you’ll need to register with the Colorado Department of Revenue for a Colorado Account Number: Colorado Department of Revenue – MyBizColorado
MyBizColorado also lets you register for wage withholding, sales tax, and unemployment insurance accounts. What other taxes you register for will depend on your specific business needs. You should consult an accountant to determine what taxes your business must pay.
Congratulations, you now own a limited liability company that is separate from yourself for all intents and purposes.
Setting up an LLC in Colorado is simple and straightforward. However, there are additional steps you will need to take to make sure it is an effective shield between your business and personal assets.
In the coming posts, we will discuss further steps to set up your LLC to have a strong foundation to protect your personal assets so that you will be in a better position to protect your assets, plan for taxes, and grow with confidence.
As always, if you need any assistance with any of these steps, please feel free to reach out, and we can develop a plan to build a solid legal foundation to build your new business.
