LLC Formation in Colorado
by
Attorney Anthony Mancuso
What you need to know about filing articles of organization to form a Colorado LLC.
A limited liability company, or LLC, is a legal ownership structure similar to a corporation. Much like a corporation, LLC owners have some protection from being personally liable for business debts. (In contrast, when you operate as a sole proprietor or a partnership, you are personally responsible for debts of the business.)
Setting up an LLC in Colorado requires two short steps:
1. Choose a name for your LLC.
The name of your business cannot be the same as the name of another business entity on file with the Secretary of State. To see if your proposed name is unique, you can search Colorado’s name database.
In Colorado your LLC name must contain the words "Limited Liability Company" or the abbreviation "LLC" or "L.L.C." The word "Limited" may be abbreviated as "Ltd." and the word "Company" as "Co."
2. File Articles of Organization.
In Colorado the document needed to form an LLC is called the Articles of Organization. You will need to prepare and file the Articles of Organization with the Secretary of State. The Articles of Organization should include your LLC’s name, its purpose, its address, and the name and address of your registered agent.
To form your LLC online right now, use Nolo's online formation service, called Online Colorado LLC. Nolo will file your Articles of Organization with the Secretary of State.
That’s it! That’s all it takes to become an LLC in Colorado.
Operating Your LLC
Though not legally required, you should also create an LLC operating agreement that will guide the LLC owners in operating the business (much like a partnership agreement or corporate bylaws). Nolo's Online Colorado LLC can create a customized LLC operating agreement for you when you form your LLC. If you've already formed an LLC, see Form Your Own Limited Liability Company, by Anthony Mancuso (Nolo), for a standard LLC operating agreement. The operating agreement does not need to be filed with the Secretary of State.
To retain your LLC’s status as a separate entity, LLC members must observe certain formalities, such as keeping detailed financial records and recording minutes of major decisions. For more information, as well as minutes forms, consent forms, and over 80 resolutions, see Your Limited Liability Company: An Operating Manual, by Anthony Mancuso (Nolo).
Last updated on 6/27/08.
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