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Creating an LLC in Colorado

On Behalf of | May 29, 2024 | Business Law News

A limited liability company, or LLC, is one of the most common organizational structures used by Colorado businesses. The reasons for its popularity range from its liability protection to its flexible taxation structure. If you are planning to turn your business into an LLC, it is important to follow all the steps listed by the Colorado Secretary of State.

Articles of Organization

To legally form a Colorado LLC, you will need to prepare and file Articles of Organization. This document must include all requisite information, including:

  • The name of the LLC (name must follow all regulations)
  • Name of the registered agent, or a Colorado resident that will serve as the primary contact for your business, and their consent to act in that role
  • Address of the principal office and the mailing address
  • Whether the LLC is manager-managed LLC and member-managed LLC
  • Names and addresses of person forming LLC

Once the Articles are filed and the requisite fee is paid, the Colorado Secretary of State will issue a certificate confirming the existence of the business. You will then have to file a periodic report each year on the Secretary of State website to keep your company’s information up to date and make sure your business is in good standing. You will also need to obtain your Employer Identification Number for tax purposes.

Operating agreement

Now that your LLC is registered, you will be able to create an operating agreement for your LLC. While an operating agreement is not required, it can be used to settle business disputes. Your operating agreement will contain information about this business, including:

  • Name and purpose of the business
  • Information about the Articles of Organization
  • Management of the business
  • Division of profits and losses

Registering your LLC and creating an operating agreement is essential to ensuring that your business runs smoothly and efficiently.