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Starting a Colorado LLC
A Colorado Limited Liability Company (LLC) is a legal structure used to protect your personal assets (home, car, bank account) in the event your business is sued.
An LLC can be used to operate a business, or an LLC can be used to hold assets (such as real estate, vehicles, boats, or aircraft).
How to form an LLC in Colorado:
- Search your Colorado LLC name in the state’s database
- Choose your LLC’s Colorado Registered Agent
- File your Colorado LLC Articles of Organization and pay the $1
$50state filing fee (see Colorado LLC costs for more details)
Note: Filing times may take longer due to the current global situation and government delays. Please see how long does it take to get an LLC in Colorado.
After your Colorado LLC is approved:
- Complete and sign your Colorado LLC Operating Agreement
- Obtain a Colorado EIN Number from the IRS for your LLC
- File your Colorado LLC Periodic Report every year
- Hire an accountant and keep track of Colorado LLC Taxes
- Get a Colorado LLC Certificate of Good Standing, if your bank requires it
Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)
(check out Northwest vs LegalZoom)
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.
COLORADO LLC GUIDE
Follow the lessons below to form your Colorado LLC.
How to get Colorado Resale certificate / Seller Permit ?
Hello Matt, First of all thank you very much for your videos they are amazing,
Question: i just formed my LLC and by mistake i didn’t attach the file to add my partner, can i add him now ? and where can i find the file “Additional member”
you have on your youtube video “Colorado LLC – Formation Documents”
Thank you in advance
hello if i have already created my llc, operating agreement and received my EIN. is it
possible to add someone else and if so how?
Hi Travis, yes, you can. Since Members aren’t listed on the Colorado Articles of Organization, you’ll just need to amend your LLC Operating Agreement (or create a new one that supersedes the old one). You’ll also want to transfer some of your ownership (called LLC Membership Interest) to the new party. You can do this by drafting a Sale of LLC Membership Interest form. Then notify your accountant since your LLC will then become an LLC taxed as a Partnership.
Thanks Matt! Do I need to amend anything right now as far as the irs is concerned? Anything involving the EIN?
Thanks again you’ve been great help start to finish!
You’re very welcome Tom! No, you don’t need to amend or file anything with the IRS. The moment your LLC goes from a Single-Member LLC to a Multi-Member LLC, the LLC automatically defaults to an LLC taxed as a Partnership. So just file a Form 1065 Partnership Return and issues K-1s to the Members and you’ll be good.
Hi, what are the main differences and/or benefits (if any) opening an LLC as non-US resident either in Colorado or Texas rather than Delaware or Wyoming like most of people do?
Also, lets say I have set up evetything up properly my business is registered ssuccessfully, my bank account opened successfully too, then will I be able to receive payments online using this LLC business and bank account with a system like Stripe or any other?
Thanks in advance!.
Hi Christian, there’s really no differences. Check out Ohio, a state I like a lot. Works well for non-US residents too. Only one address needed on the Articles of Organization, Members aren’t on public record. And there’s no Annual Report. And yes, after the bank account is set up, you’ll be able to set up a payment processor to get paid online.
Thank you for your step by step videos! I was unsure about my next steps and whether or I needed to form an LLC for consulting. Your videos gave me the confidence to just go for it! Fun fact, for 2022, it only cost(s) $1 to register an LLC in Colorado!
You’re very welcome Ryan! That’s so awesome to hear. I hope things are going well! And yes, super cool that Colorado has temporarily lowered the LLC filing fee to only $1!
Hi Matt,
Super helpful information on here– thank you! I was looking for more info on needing a Certificate of Good standing and thankfully came across this page to see that I do not need to pay $70 for one, phew! Which leads me to my second inquiry, I received a Labor Law Compliance notice and wondered if I am the sole “employee” of my business (which is in the beginning stages), do I need to purchase Labor Law mandatory posters to post in my home? Or does it meet compliance if I print off current regulations? Just not sure if I need to pay $84 for posters being sent to me.
Thank you so much!!
Hi Alejandra, thank you! And you’re very welcome. Yes, no need for a Certificate of Good Standing. However, they are free in Colorado. Did you know that? Please see here: Colorado LLC Certificate of Good Standing if you’d like to get one.
And regarding that “labor law compliance notice”, it’s spam/junk mail (aka a scam/false advertising). It goes in the trash. If you look at the bottom or on the back, it’ll say something like “we are not the state government”, “this is not a bill”, etc. Hope that helps.
Hello,
I formed an llc that I was going to use for a business, but covid kept the business from launching. the business hasnt started yet but the llc annual fees are due and I still am not using the LLC. Should I dissolve the llc for now, or let the state dissolve it? I may start the business this summer if things go ok. What do you think?
Hi Travis, it may be better to leave the LLC open in case you decide to use it later. It costs $10 to dissolve the LLC. And then to reinstate the Colorado LLC, it would cost $100. If the state administratively dissolves the LLC, it’s still $100 to reinstate the LLC. On the other hand, the Colorado LLC Periodic Report is only $10 per year. Hope that helps.
I live in Texas but want to form LLC in Colorado (majorly online and home based business). I intend to relocate to Colorado in the nearest future. Can you advise me? Thanks.
Hi Larry, if you’re moving soon, we generally recommend forming the LLC in the state where you’re heading to, since that is the state where the LLC will be transacting business. Hope that helps.
Hi Matt,
I like your articles which are very helpful! I am building a new SFH for profit currently. This is my first build, after sell it, i’m planning do it again and again which will be my business model. My question is that should i set up LLC for each home i build? If yes, when should i set up the LLC, at the beginning of the pre-construction, during the construction, or before finishing the construction?
Thank you so much!
Ashley
Hi Ashley, thank you! It’s not common for developers to use a different LLC for each project, since they are turning them over very quickly. Furthermore, forming an LLC during construction wouldn’t make too much sense, since who bought the land… you? (I’d image you’d want the LLC to own the land instead.) There are a few different ways developers structure their operations, however, we’re unable to say “this is the way to do it” since there is a bit of variation. It’s best practice to speak to a few real estate attorneys (and your accountant) to figure out the ideal setup. Thanks for your understanding.
You’re welcome and thank you for the reply! I also came across your article on DBAs over the weekend which was very helpful. I really appreciate the information you are providing through your website and videos, and I know I’m not the only one! Thanks again for all you do to help aspiring entrepreneurs like myself and others!!!
Hey Derek, thanks man. Comments like yours continue to inspire us to keep doing what we’re doing! Thank you :) And I’m glad the DBA article was helpful. So much confusion around DBAs lol!!
Hi Matt,
I recently came across your LLC tutorial videos on YouTube which led me to finding your website. I have to say, the information you are providing people is phenomenal! I am getting ready to form an LLC for a photography business. I’m not ready to start multiple businesses right away, but in the future (possibly sooner rather than later) I may also pursue other endeavors.
I tried doing some research on starting multiple LLCs, but did not find clear-cut answers, so here is my question: Can an individual like myself be a single-member owner of more than one LLC (active and in Good Standing) in Colorado?
If the answer to that is yes, are there any caveats to be aware of other than filing twice the paperwork and paying twice the startup/renewal fees, and filing taxes for both businesses?
I know you can’t provide legal advice, but I was hoping to get your insight on whether I can own two or more LLCs and if there are any major concerns to be aware of?
Any insight offered would be greatly appreciated!
Regards,
Derek
Hi Derek, thank you for the kind words! It means a lot :) If you want to form 3,000 Colorado LLCs (all owned by you), you certainly can. There’s no limit to the amount of LLCs you own. Probably easiest to get your feet with 1 and then go from there ;) Hope that helps.
Hey so If i started an LLC how do i attach my business to it? and can i have multiple businesses under it?
Hi Chase, what type of business do you have? Yes, you can have an LLC with multiple business activities taking place.
I am currrntly starting a dropshipping Shopify store, do I need to get an LLC off the gate?
Hi Chase, you only “need” an LLC if you want to operate the business through an LLC. You can operate the business as a Sole Proprietorship instead. However, most people prefer an LLC over a Sole Proprietorship because of liability reasons (see LLC vs Sole Proprietorship). The way to have the LLC carry your Shopify business is to register the Shopify account in the name of your LLC. Also make sure your domain name is owned by the LLC. Then on your website, make it clear that people are interacting with your LLC. For example, mentioning the LLC in the about page, contact page, terms of service, privacy policy, disclaimer, copyright notice, etc. Essentially, you wan to put the public on notice that they’re dealing with an LLC. Hope that helps.
So much help! Just one more thing, once I get the LLC through, do I need any other business license or permits for my eccomerce business
Hey Chase, Colorado doesn’t have a state-level business license, and online businesses rarely need a business license or permit. There may be tax registrations that are applicable though. You may need a “home occupation permit” from your city or county, but it’s usually not required in most places… however, there’s well over 20,000 municipalities in the US (meaning we can’t get into that level of granularity), so you’d have to make some local calls to check on your requirements. But don’t let that get in the way of you starting your LLC and making your business successful. Hope that helps :)
do i have to have a registered agent for my llc, can i be my own registered agent
Hi Richard, yes, all Colorado LLCs must have a Registered Agent, however, that doesn’t mean the Registered Agent has to be a Commercial Registered Agent. You can be the Registered Agent for your LLC. We have more details here: Colorado LLC Registered Agent.
Thanks for the lesson on LLC formation in Colorado !
My question is;
In the filing of articles of the LLC, as the Registered Agent you marked it under “Entity” and used the LLC name.
In the next section, The TRUE person who’s filing, you put in the “person”. Otherwise you, aka John Doe. Why is there a choice of “entity” again and why didn’t you choose this as you did above for the registered agent? It’s a little confusing why they have ” entity” as a choice under TRUE person who’s filing.
Thanks
Hi Scott, you’re welcome! That section is for the LLC Organizer. An LLC Organizer can be an LLC owner (Member), but a company that is hired by someone to form an LLC can also be the LLC’s Organizer… that is why the “entity” choice is in that section. Hope that helps!
Hey Matt!
Great information here. You have already been a great help to the early stages of getting my new business venture off the ground.
I just have some questions regarding taxes (and I do plan to speak with a CPA in the near future, but wanted to see if you had knowledge pertaining to my situation). Basically, I am starting a business in Colorado with 2 partners. One partner and myself are both US citizens residing in CO. However, the third member is not a US citizen and resides outside of the US most of the year (no permanent address in the states).
I understand that an LLC is a pass through set up for taxes, so does the foreign partner have to obtain an ITIN? Do they have to pay taxes in the US and in the home country? Is there anything this partner can do to avoid becoming a US tax citizen? And lastly, is there anything “special” we need to do as a group with setting up the LLC with this partner involved?
Any information you might have about this would be much appreciated!
Thank you and once again great work on the videos and site in general!
Hayden
Hi Hayden, glad to hear we’ve been able to help! It sounds to me like they’ll have to pay US taxes and in that case, will need an ITIN. This is not our area though, so you’ll have to take the rest of the questions to a CPA or tax lawyer. Hope that helps a bit.
Matt –
I just want to say that I have completed converting my family grocery store from a sole proprietorship to an LLC. Thank you so much for your help in this process. I followed your videos and was able to do it without hiring someone else. My family business is now Hau Giang Market, LLC. Many thanks!
Cuong Doan (store manager).
Cuong, you’re very welcome. And I’m very happy to hear! Thank you for the nice comment. Best wishes with your business :)
Thank you for this clear concise information!!!!! But, HELP!!!! We have an LLC that was established in Colordo in 2014. We are a two member LLC for now (probably forever) and I live in Texas and the other founding member lives in Colorado. I am the financial and tax matters member for the LLC. We are an educational service agency that have clients throughout the US. I was going to register the LLC as a foreign entity in Texas ($750) and dissolve the Colorado LLC because I’m here in Texas and would also like to avoid dealing with Colorado state taxes. From your videos & resources it looks like we shouldn’t try to “move” the LLC?!? Thoughts?
Hi Nichole, thank you for the kind words :) You’re welcome! filing as a Foreign LLC does not create a “new LLC”. It simply gives the Domestic LLC authority to legally do business in the new state. So you would not want to dissolve the Colorado LLC after registering as a Foreign Texas LLC. That would cause issues. What CO state taxes are you paying? You paying them personally or the LLC is paying? Have you spoken with your accountant regarding this? I’d move slowly as there are a number of factors at play. I’ll provide some more thoughts after your reply.
Hi Matt,
Great job on the videos. Easy to follow and understand, I haven’t finished them all though.
Do you have any instructive videos for non US citizen to form an LLC in the US?
I am not a US citizen, but I lived in Colorado for about 7 years. I worked as a researcher in Colorado and I have a SSN, but I am not a citizen as I mentioned.
I also have an active bank account in Colorado, which I am using for my current online Amazon business. I would like to expand my online business into some other platforms, and have my own online store.
To do that legally, I would like to get an LCC and a business license. Would you please advise me on how to go about this? Is there different approach for non US citizens? Do I just file my LLC with Colorado, since my billing address on my bank account is in Colorado?
Best regards,
Moe
Hey Moe, thanks for the kind words! And great question. Usually most non-US citizens don’t have SSNs, so the way they need to obtain an EIN from the IRS is different, however, that’s not the case in your situation. Everything will be exactly the same for you when forming an LLC (the same as it is for US citizens). Nothing is different. If you live in Colorado and are going to be working from there, it’ll be best to form an LLC in Colorado. Colorado is very business-friendly and has low LLC fees, so it’s a great state. After your LLC is approved and you obtain an EIN from the IRS, you’ll want to open an LLC checking account at your bank (or another bank)… instead of using your existing bank account. Hope that helps!
Hi Matt,
Thank you very much for your quick reply. So I file my papers as a Colorado resident even though I don’t reside in Colorado for the time being. I am currently outside of the US, and I’ll be outside of the country for quite long. The only thing that still has my Colorado billing address is my bank account and credit card.
Hi Moe, I see. It’s not really about being a resident of the state, but more so where you are legally doing business. In your case, you could really pick any state (since it doesn’t sound like you will running things from Colorado for the time being). Colorado may be less expensive for you if you use a friend or family member as your Registered Agent. Also, a lot of people in this situation feel better (mentally) about forming the LLC in the state which they know the best and still have some ties/connection to.
Matt,
Well done!! Saved myself at least $100 right out of the gates. That’s a good way to make one of my first business decisions a good one. Following the lessons took me a couple hours but I was meticulous. I did forget to put the LLC in the entity name even after you mentioned it enough times. I filed a change of name and ended up paying an extra $20 (entity name change and registered agent name change, oops.) Colorado being all online is great. You explain it well.
Thanks,
Ty Yanushka
New LLC Business Owner
Hey Ty! Thanks for your comment! Glad to hear you were able to sort out the amendment and name change, and also happy to hear we were able to help you save money :)
you said in your video that if i formed a llc in the past i never did anything with it i got the ein but i never filed a periodic report ar taxes but i never donr any business with my llc i just let it dissolve. does that really mean i can never form another llc in colorado ?
Hey Travis, are you sure I said that in a video? Which video and at what minute marker? Either way, that’s not the case. Letting an old LLC dissolve will not prevent you from forming new LLCs. Hope that helps.