Can You Form an Anonymous LLC in Colorado?

The quickest response is that you cannot establish an anonymous LLC in Colorado. The names and addresses of each member and manager of the LLC must be provided when registering it in Colorado. The public can find this information by conducting a business entity search on the website of the Colorado Secretary of State.

Colorado does permit the creation of single-member LLCs, which can aid in protecting the owner’s identity, but it does not permit perfect anonymity. To receive official communication on behalf of your LLC, however, you can engage a registered agent if privacy is an issue for you.

Incorporating as an LLC as opposed to a S Corp can have different tax consequences based on your income, the state in which you do business, and the type of business you run. Since S Corps are exempt from self-employment tax, they often pay less in taxes than LLCs.

It’s crucial to keep in mind, though, that LLCs are exempt from Colorado’s 1.5% franchise tax, whereas S Corps are. S Corps are also more difficult to establish up and operate than LLCs and have stricter ownership requirements.

S Corps have a variety of drawbacks in addition to the tax benefits they provide. For starters, S Corps are only permitted to have 100 shareholders, all of whom must be citizens or residents of the United States. S Corps must also adhere to stringent ownership and management standards, which can be onerous for small business owners.

The difficulty of record-keeping and compliance may be another drawback of incorporating a S Corp. S Corps are expected to submit annual reports to the state, maintain thorough records, and attend regular meetings. In an LLC, who is the real estate owner?

In an LLC, the property is owned by the business as a whole, not by the individual members. As a result, if the LLC buys a piece of property, it owns it collectively as opposed to each individual member.

Individual members can still use and profit from the LLC’s property, though. For instance, even if they do not personally own the property, the members of an LLC can nevertheless receive rental revenue from it if the LLC buys a rental property. Can the LLC’s sole owner also serve as the registered agent?

Yes, the sole proprietor of an LLC may act as the company’s registered agent. The registered agent must, however, have a physical address in the state in which the LLC is registered and must be accessible during regular business hours to receive any official mail from the state or other entities. The sole proprietor may wish to think about using a registered agent service to undertake these duties if they are unable to be available during these hours or if they do not have a physical location in the state.