One of the initial actions you should do when opening a new company in Colorado is to register your business name. It’s critical to register your business name to prevent it from being used by another company. This article will walk you through reserving a name, the cost of registration, and whether or not you require a business license when registering a business name in Colorado.
Make sure the name is available before registering it as a business name in Colorado. This can be accomplished by reserving the name with the Secretary of State of Colorado. You must submit a Statement of Reservation of Name form to the Secretary of State’s office in order to reserve a business name. The $25 name reservation fee can be paid by mailing or submitting this form online. You will have 120 days from the time your name is reserved to submit your organization’s articles of incorporation to the Secretary of State.
After reserving your business name, you can register it with the Secretary of State of Colorado. You must submit Articles of Organization to the Secretary of State’s office in order to achieve this. The registration charge for a business name is $50, and you may complete this process online or by mail. The name and address of your company, the name and address of your registered agent, and the names of the members or management of your LLC are all included in the Articles of Organization.
Depending on the type of business you are launching, Colorado’s business registration fees may vary. For instance, registering an LLC, a corporation, and a partnership or sole proprietorship each cost $50, $50, and $20, respectively. Additionally, annual reports must be completed, and depending on the sort of business, they can cost anywhere between $10 and $100. For LLCs, a business license
Depending on the kind of business you are forming, you might still need a business license in Colorado if you have an LLC. For instance, in addition to forming an LLC, you will need to apply for a second license if you plan to operate a business that calls for a certain professional license, such as a daycare facility or real estate brokerage. Sole proprietorship vs. LLC
You could be debating whether to file as a sole proprietorship or an LLC when opening a business in Colorado. Although both alternatives have advantages and disadvantages, forming an LLC offers better legal protection for your private assets. This implies that your personal assets, such as your home or car, will be safeguarded in the event that your company is sued. An LLC can also offer flexibility in administration and ownership as well as tax advantages. But if you want something easier and less expensive, you could be better off registering as a sole proprietorship.
In conclusion, the first step in beginning a new business in Colorado is to register a business name. You may make sure that your company is legally protected and acknowledged by reserving and registering your business name with the Colorado Secretary of State. The cost to establish a business in Colorado varies depending on the sort of business, therefore it’s crucial to determine whether you also need a business license. The choice between an LLC and a sole proprietorship ultimately comes down to the demands and objectives of your particular firm.