What is the purpose to Open LLC?
- You must file an articles of organization to create a Colorado Limited Liability Company (LLC) with the Secretary of state Colorado to conduct business lawfully. It provides protection to its members and managers and it is separate from the personal.
- An LLC is an unincorporated association of one or more members who share in the profits and losses of the company’s business. It is a pass through entity and a member of the LLC reports, profit and loss on their income tax returns.
- It is managed in accordance with an operating agreement by one or more members (member-managed) or by one or more manager (manager-managed).
- An LLC (Limited Liability Company) is a separate legal entity and, generally, the members and managers are not liable for the obligations of the limited liability company.
Requirement to Open LLC in Colorado?
- File Colorado LLC Name Search before filing to ensure the name is available to avoid any delay in filing process due to the rejection by the state.
- You can also Reserve Colorado LLC Name if you are not ready to incorporate it now.
- The Articles of organization LImited Liability Company must be filed with the state to register the Limited Liability Company in Colorado.
- Provide members' information, including name and address.
- Provide social security number of at least one member to apply for the employer identification number (Not applicable for a non US resident).
- Provide a business address to register an LLC in Colorado (PO Box is not acceptable).
- Provide business description.
- Colorado LLC can be incorporated with one member only.
- Colorado LLC can be Registered as a member managed or manager managed (See the difference below).
- A Colorado Registered Agent Address is required and a member of the Colorado LLC can serve a registered agent instead of retaining a third party to serve a Colorado registered agent.
- Registered agent can either be an individual or an entity.
- The Colorado Articles of amendment must be filed if there is any change in the business name or members of the LLC.
- An LLC combines the concepts of partnerships for tax purposes and corporations for liability purposes
- While similar, LLCs are NOT corporations. In an LLC, the owners are called members. The members may elect or hire a manager(s) to run the business. As in a corporation, the owner(s)/member(s) may elect themselves to be the manager(s).
- Annual report must be filed to keep the CO LLC in good standing.
- Processing Time-You can check the state current estimated time to process your LLC application either online at InfoTaxSquare.com website or contact us.
- We have customized online form to file 24/7.
Managed LLC
An LLC that is managed solely by its members(s) (i.e. its owner(s)). An LLC member is an owner of an LLC; in other words, an LLC member is the equivalent of a corporate shareholder.
Manager-Managed LLC
An LLC that is managed by at least one manager. An LLC manager is a person appointed by the LLC member(s) to manage the day-to-day operations of the LLC; an LLC Manager is the equivalent of a corporate director. LLC members may be appointed as an/the LLC manager.
InfoTaxSquare.com is not associated with the State and you can check the fee schedule and online forms to apply 24/7 by using the following links.
Register LLC in the state of Colorado as a Non Resident
A non resident also can register an LLC in Colorado without a social security number.
File a Periodic Report
- Submit a Periodic Report each year to the Secretary of State.
- Submitting the Periodic Report also maintains the “Good Standing” of the entity with the Secretary of State.
- The Periodic Report is due during the three-month period beginning with the first day of the entity’s anniversary month of formation, also referred to as the Periodic Report Month.
- A Periodic Report can be filed up to two months early.
- If the Periodic Report is not filed on time, the entity will have an additional two months to file a late Periodic Report with an additional late filing fee imposed.
Oher Registration to Start Business
- You may need to apply for the sales tax license with the Colorado Department of Revenue, if you are involved selling any tangible and intangible taxable items or services in the state of Colorado.
- You may need to apply for the payroll taxes, if you are hiring employee(s)
- You may need to obtain workers compensation and disability insurance for your employees.
Opening Business Bank Account
You should open a business account to maintain your business activities.
A request to retrieve Filed Documents
You can always request to the state to retrieve a duplicate copy of your filed documents.
Filing Taxes
All single member or multi-members LLCs are required to file taxes with the Internal Revenue and Colorado Department of Revenue. You can also file LLC taxes as a Corporation or an S Corporation and you have to file an election with the IRS and the state for approval.
Basic Tax Filings
- Yearly Filing Form 1040 or Form 1065.
- Yearly Filing State and Local taxes(if applicable)
- Sales Tax Reruns if selling taxable products of licenses. Make your you have obtained a Sales tax license from Colorado Department of Revenue.
- Payroll taxes and make sure that you have obtained registration to hire employee(s).
