There are a few things to know and do before going ahead with setting up a limited liability company, or LLC. For example, you need to know what an LLC is and its distinct advantages for business owners.
Paper documents may not be available
We have found that the Secretary of State (SOS) requires many businesses to file forms electronically. Please keep this in mind, as you may need to create an account and complete various online processes, including payments.
Confirm your preferred LLC name is available
It would be very embarrassing to choose a business name only to learn that another company has already registered it before you. The SOS website offers two ways to check name availability:
Foreign entities wishing to expand into Colorado are advised to carry out a proper name availability search. If you cannot use your pre-existing brand name, you must register an assumed name instead. Additional name information is available on the Colorado Secretary of State’s website.
If everything is in order, you can file a name reservation statement online. Although the forms are filed electronically, the official website has a sample form for you to view. It costs $25 and the state allows you to reserve a business name for up to 120 days. If you wish to retain a name beyond that, you must file a Name Reservation Renewal Declaration Form and pay an additional $25.
Set up web domain and social media accounts
While making sure your ideal LLC name is available through official channels, now is also the best time to check domain and social media availability. Many companies find it easier to establish their brand if they can promote it online through official websites and accounts on platforms such as Twitter or Instagram.
Get a registered agent
By law, all corporations and LLCs doing business in Colorado must have a registered agent. The agent is responsible for accepting legal documents such as lawsuits and subpoenas on behalf of the LLC.
You or another member or employee of the LLC may act as a registered agent as long as you are 18 or older and a resident of Colorado with a physical address in the state. Unlike most states, Colorado allows the LLC to act as its own registered agent. You can also hire a person or company to act as an agent on your behalf.
The cost of a registered agent for your Colorado LLC varies, from just over $30 to $300. Before hiring someone, be sure to check that they are reputable and offer the services you need. We have compiled a list of the best registered agent services for your reference.