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Starting a Colorado LLC: The main reason why people form an LLC in Colorado is to protect your personal assets. A Colorado LLC, or Limited Liability Company, is a type of business entity formed under Colorado law.
An LLC gives you personal liability protection in case your business gets sued. A Colorado LLC can run a business, hold assets (like real estate, boats, planes, and other vehicles), make money, own and lease property, enter into contracts, open a bank account, and sue and be sued.
A Colorado LLC creates a wall of protection between your business and personal assets. Your personal assets are protected in the event your business gets sued. There are 5 steps to forming an LLC in Colorado. They are:
1. Choose a Name for your LLC
2. Select your LLC’s Registered Agent
3. File your LLC’s Articles of Organization
4. Draft and sign your LLC’s Operating Agreement
5. Get your LLC’s EIN (Employer Identification Number)
To make sure your LLC remains in good standing with the State after it’s been formed, you’ll need to:
• Filing your LLC’s Periodic Report (due every year)
• Paying your LLC’s Taxes
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