For Colorado LLC prices and State fees, please visit the costs page for forming an LLC in Colorado.
Colorado llc formation is an alternative to corporations and partnerships. The Colorado LLC is a separate legal entity, unlike a sole proprietor, however the taxation is nearly identical to a partnership or sole proprietor. The Colorado Limited Liability Company is a pass-through taxation entity. This means that the profits of the company pass through the LLC to the owner(s), who pay taxes on the company profits. The same taxation can be applied to corporations, however the corporation must file for the "S election" tax status, IRS form 2553. The business structure differences, can be explained to you by Companies Incorporated representatives, just call (800) 830-1055.
Colorado Limited Liability Company offers a great deal of protection between the owners’ personal life and that of the business. To maximize the protection of a Colorado LLC, the company must be operated correctly, and although Colorado llc formation has fewer formalities than a corporation, it is always good practice to ensure that the business is operating as its own entity. Some examples are; maintain good standing with the Colorado state office by filing timely annual reports, maintain a registered agent, or a physical address on public record for the business and document decisions made by the directors / officers of the company that are approved by the shareholders, or owners. For more information on incorporating and forming an LLC, call Companies Incorporated at (800) 830-1055.
A Colorado LLC is a "pass through" tax entity. This means that the profit and losses of the company are passed on to those who own it and reported on their personal tax filings / returns. The Colorado Limited Liability Company does not pay business taxes at the company level, any tax due is paid at the individual level of the owners. Colorado llc formation has tax advantages that include the option to have the company taxed as a corporation, otherwise it is taxed as a partnership or sole proprietorship, however the need to file itemized business deductions, or a schedule K-1, is unnecessary. For more information on Limited Liability Companies, call Companies Incorporated at (800) 830-1055.