There are a few things to know and do before you move forward with setting up a limited liability company, or LLC. For instance, you should know what an LLC is and its distinct advantages for business owners.
Paper Documents Might Not Be Available
We found that the Secretary of State (SOS) requires many businesses to file forms electronically. Please keep this in mind, as you may be required to create an account and complete various processes online, including payments.
Confirm Your Preferred LLC Name Is Available
It would be highly inconvenient to settle on a business name, only to learn that another company already registered it ahead of you. The SOS website provides two ways to double-check name availability:
Foreign entities wishing to expand into Colorado are advised to perform a true name availability search. If you cannot use your preexisting brand name, you must register an assumed name instead. Other name-related information is available through the Colorado Secretary of State website.
If everything is in order, you can file a Statement of Reservation of Name online. Though forms get filed electronically, the official website offers a sample form to look over. It costs $25, and the state lets you reserve a business name for up to 120 days. Should you want to hold a name beyond that, you must file a Statement of Renewal of Reservation of Name form and pay an additional $25.
Set Up Web Domain and Social Media Accounts
While ensuring your ideal LLC name is available through official channels, this is also the best time to check for domain and social media availability. Many businesses 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 within Colorado are required to 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 can act as the registered agent as long as you are 18 or older and a Colorado resident with a physical address within 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 perform the role of agent on your behalf.
The cost of a registered agent for your Colorado LLC varies, from a little over $30 to as much as $300. Before hiring anyone, be sure to check that they are reputable and offer the services you need. We’ve compiled a list of the best registered agent services for your reference.