There are two main benefits to forming an LLC in Colorado: personal liability protection and pass-through taxation. We’ll discuss the most important one first. Personal liability protection is a benefit found both in Corporations and LLCs. It builds a “wall of protection” between your personal assets and the assets of the business. If your business gets sued, your personal assets cannot be used to pay off any debts or liabilities.
Forming a Colorado LLC? Get simple answers to the following: How can I state an LLC in Colorado? How long does it take to form an LLC in Colorado? How much does it cost to start an LLC in Colorado? How do I file a Periodic Report for my Colorado LLC? Is Colorado the best state to form my LLC? What taxes do I need to pay as an LLC in Colorado? And much more!
Learn how to form an LLC (step-by-step) in Colorado
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. Obtain your LLC’s EIN (Employer Identification Number)
None of the 50 states have rules or restrictions about whether or not you have to use a comma. You can use a comma in your LLC or you can leave it out if you prefer. The more traditional and commonly seen is the comma (ABC Widgets, LLC). And by more commonly seen, I mean with-the-comma LLCs encompass over 80% of registered LLCs in most states.
The average US state charges $132 dollars to form an LLC. The average state charge $91 per year for an Annual Report (some state don’t have one). This post breaks down the actual costs to forming an LLC, whether you file yourself, or you hire someone else to do it for you. Table breaks down all costs.
The table in this article shows the filing fees for forming an LLC in all 50 states. LLC filing fees range from $40 to $505, with the average being $132. Keep in mind though, that you may need to hire a Commercial Registered Agent (additional cost) if you don’t have an address in the state where you’re forming an LLC. You also need to pay an Annual Report fee if your state requires it.
We see a lot of advice in the online business world about waiting until your income hits a certain level before you form an LLC. I don’t think this is a good idea. In fact, this is bad advice. Making money has nothing to do with risk and liability. If you don’t have a couple hundred dollars to form an LLC, you should consider saving up before starting your online business.
The answer to this question depends on how many properties you own. If you own less than 10, than typically, smart real estate investors setup a new LLC for each property. Once you get over 10-12 properties, managing all of the different LLCs (and their individual bank accounts) can become quite tedious. Once you get to that point, a strategy and entity structure meeting with a savvy real estate attorney is recommended.
To get full liability protection, you need to purchase your property and obtain your financing in the name of the LLC and order for that LLC to protect your personal assets. However, if you’ve already bought property in your personal name and you want to transfer it to the LLC the biggest thing that’s going to hold you up is a mortgage. You need to talk to the lender/the bank.
A Professional LLC (PLLC) is a type of limited liability company formed for the purpose of providing professional services. Professional services are those where a person is licensed by the state for the service they provide. In most states, all members of a PLLC are required to be licensed. Who needs to form a PLLC? It does vary by state, but usually the following professionals will need to form a PLLC…