A Colorado LLC operating agreement helps you ensure your new business is legally sound. Your document should outline the duties and rights of your company’s owners. It should also state the financial interests of each member of the LLC.
The company is then bound by the agreement set forth by its members, which will take precedence over default state LLC laws in court. Additionally, you can enter into an operating agreement at any time in the lifespan of your business.
NO, Colorado doesn’t require an operating agreement to form an LLC. However, just because it’s not required doesn’t mean it’s not a good idea.
Outlines how a sole owner manages and operates their company.
Designed for companies with two or more owners.
Colorado state LLC laws are outlined in Title 7, Article 80 – Limited Liability Companies, covering two operating agreement statutes:
Forming an LLC in Colorado is a reasonably simple, four-step process that will have your business up and running in no time:
You can use the Colorado Secretary of State online portal to set up your LLC in Colorado. This allows individuals to set up their LLCs using online filing systems quickly.
To start an LLC in Colorado, you must select your entity type. Once you’ve chosen the entity type, you must complete the appropriate online form. The paperwork you’ll need to complete depends on whether you’re opening a domestic or foreign LLC.
You must pay a filing fee once you’ve filled out your form. The filing fee varies, once again, depending on whether or not you’re opening a domestic or foreign LLC.
With your fees paid, you’re ready to create an operating agreement. Remember that this is not a required step, but it is certainly recommended to have a successful business.
If you’re forming a single-member LLC, you can use this document to prove your business structure is separate from yourself in court. This can be extremely helpful if you’re ever subject to a tax audit or other issues with the IRS.
The final stage of the process is to get an Employer Identification Number (sometimes called an EIN). EINs are used to help the IRS track a business’s financial activity.
If you want to hire employees, open a bank account, take out a loan, or get a credit card, you’ll need an EIN. You can either apply for this form on the IRS website or by mailing a paper to the IRS.
Download this Colorado LLC operating agreement template to get started.
Start building your Colorado LLC operating agreement today!
