You must first select a name for your firm and make sure it is available before you can establish an LLC with just one person. By performing a search on the Colorado Secretary of State’s website, you can determine whether the name you have in mind is still available. Once you have a distinctive name, you can register your LLC with the State of Colorado by submitting Articles of Organization. This document contains crucial details about your company, like its name, mission, and address.
You must request an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) after registering your LLC. For tax purposes, your firm is identified by a special number called an EIN. Applying for an EIN is possible online, by mail, or by fax. You can open a business bank account and begin doing business after you have your EIN.
You will be regarded as a disregarded entity for tax purposes as a single-member LLC. This implies that your personal tax return will include information about the earnings and expenses of your LLC. You will need to submit a separate tax return for your business if your LLC has workers or you choose to be taxed as a corporation.
Colorado’s Colorado Business Income Tax is a state tax that applies to LLCs. This tax is based on the taxable income of your LLC and is due on the 15th day of the fourth month following the end of the tax year for your LLC. Depending on the nature of their operation, LLCs may also be required to pay additional taxes, such as payroll taxes or sales taxes.
You do not have to register your business with the state of Colorado if you run a sole proprietorship there. Nevertheless, depending on the type of your firm, you might need to acquire particular licenses or licences. For instance, the Colorado Department of Public Health and Environment will need you to apply for a license if you want to operate a food truck business.
As a single-member LLC, you must provide your EIN and tick the box that says you are a disregarded entity while completing a W-9 form. Along with your name and social security number, you must also give the name and location of your LLC.
In conclusion, forming an LLC with just one person is doable and generally simple. You can create an LLC, get an EIN, and start doing business in Colorado by following the instructions in this article. Remember that, as a single-member LLC, you must record your LLC’s revenue and expenses on your personal tax return and that, depending on the nature of your business, your LLC may be subject to both state and federal taxes.