Incorporating in Colorado requires you to understand the basics of Colorado corporate law. The structure of your corporation will be instrumental in the success of your business. It will affect your tax treatment, filing requirements, funding potential and liability obligations.
The ownership plans for your business entity will help determine how to incorporate in Colorado. A traditional corporation is useful to raise money with investors. Colorado corporate law requires complex ongoing paperwork, and will tax your business income on corporate and shareholder levels.
Registration under Colorado LLC laws is less complicated. Taxation occurs only on one level, the structure is simple and requires only two people to incorporate. Under Colorado partnership law, a partnership is appropriate for business ventures that have a limited time frame or a small number of people involved. Taxation benefits are similar to a Colorado LLC, in that there is no double taxation. The drawbacks include increased exposure to liability for the actions of the partnership.
The options available under Colorado corporate law are:
1. 1. A profit corporation.
2. 2. Limited liability corporation (Colorado LLC).
3. 3. Limited liability partnership (LLP) or Limited Partnership.
Action Steps
The best contacts and resources to help you get it done
Choose what works under Colorado corporate law
The decision on whether to set up a corporation or partnership depends on your long-term goals for the business. Ownership is easier to divide in a corporation, while partnerships are not well-suited for growth or sale and do not offer stocks. Taxation is different for both types of entities. And, finally, Colorado corporation registration, including Colorado partnership law, requires varying filing of paperwork and fees.
I recommend: FindLaw will guide you through picking the entity structure that works for you. If you need further advice, look for a site such as
lawyers.com to find a Colorado attorney.
Make your Colorado incorporation a reality
Begin by choosing a business entity name that satisfies Colorado corporation law. Colorado corporate law requires filing certain forms as well as submitting fees. The filing may include articles of incorporation, or, for Colorado LLC registration, articles of organization. Fees will vary depending on the structure. File online for the most expedited service.
I recommend: Conduct a records search with the
Secretary of the State's Office to find a business entity name that has not already been incorporated. Find the appropriate business entity form and file electronically at the
Secretary of the State Business Center. Confirm the fee required by checking the
business center's fee schedule.
Know the details of Colorado corporation law
You must abide by all Colorado rules and regulations with regard to Colorado incorporation, so review the related statutes carefully.
I recommend: Review the
Title 7 of the Colorado Revised Statutes to understand your obligations when incorporating in Colorado. Read the Secretary of the State's
cautions and tips with regard to Colorado corporations and Colorado LLC law to gain further information.
Tips & Tactics
Helpful advice for making the most of this Guide
- Remember that once you have filed for incorporation in Colorado, your job is not done. There will be annual filing requirements and fees to keep your business entity in good standing.
The official source of Colorado Corporation and Partnership Law is
the Colorado Corporation and Partnership Law page at Business.com
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