You must submit the necessary documentation to the state if you wish to start a business in Colorado and benefit from the tax advantages of creating a S corporation. Here is a step-by-step manual to assist you with the procedure.
Select a business name in the first step. You must decide on a name for your company before you can register your S corp with the state of Colorado. The name must be original and unclaimed by another company operating in the state. On the Colorado Secretary of State website, you can look up available company names.
File Articles of Incorporation in Step 2 You must submit Articles of Incorporation to the Colorado Secretary of State in order to formally establish your S corp. This document contains the fundamental details about your company, including its name, address, and the names and addresses of the directors.
Obtain an EIN in Step 3 The IRS will then need to provide you an Employer Identification Number (EIN). This special number is used to keep track of the financial transactions and tax filings for your company. EIN applications can be submitted online or by mail.
Step 4: Submit Form 2553 You must submit Form 2553 to the IRS in order to choose the S corp status for tax reasons. By submitting this form, your company notifies the IRS that it has chosen to be taxed as a S corporation. This form must be submitted no later than 75 days after your company’s incorporation or before the start of the tax year you desire to be taxed as a S corporation.
Do S Corporations Need to File Tax Returns? Yes, a S corporation is required to submit a tax return to the IRS each year. An S corp, on the other hand, differs from a typical corporation in that it is a pass-through organization, meaning that the company’s gains and losses are distributed to the owners for inclusion on their personal tax returns. In Colorado, does an LLC have to file a tax return? Yes, Colorado requires LLCs to file an annual tax return. However, LLCs have a choice about their federal income tax treatment. If there is just one person, they can be treated as a sole proprietorship; if there are numerous members, they can be taxed as a partnership. Do You Need to File a S Corp If There Is No Activity? Yes, you must submit your annual tax return to the IRS even if your S corp is idle. The return will reflect that there were no revenues or outlays for the business throughout the year. Do I Need to File a Business Tax Return in Colorado? Yes, all companies doing business in Colorado are required to file a state tax return. Depending on the kind of business you have and how it is taxed, you must file a specific kind of return. Depending on how it is taxed, an LLC may file a Colorado partnership or sole proprietorship return, whereas a S corp will file a Colorado S corporation income tax return.
Yes, Colorado has a filing requirement for Small Limited Liability Companies (Smllc). In fact, in order to be recognized as a legal entity, all LLCs in Colorado, including Smllcs, must submit articles of organization with the Secretary of State’s office. Smllcs, however, might offer a few tax advantages and less regulatory burdens than larger LLCs.