From Pikes Peak to Rocky Mountain National Park, coming to Colorado means getting a little bit of every kind of landscape under the sun from the aforementioned mountain areas to forests, deserts, canyons, mesas, and high plains. It also means meeting and greeting with an abundance of entrepreneurs starting up their own small businesses! Former technology and aerospace firm employees have branched out to Colorado to start up their own IT, manufacturing, and home-based consulting companies, as mentioned on CNNMoney with the 2011 numbers ranking in 420 new businesses per 100,000 adults.
What brings entrepreneurs in? Outside of the fact that there’s plenty to do and see and sites to ski on, starting up a business in Colorado means a lower cost of living all around, affordable worker’s compensation rates, and state-funded training programs made available. Before you decide to form an LLC or corporation in Colorado, however, keep the following advantages and rules in mind:
1) Remember to choose a corporate name. In Colorado, a corporation’s name needs to include the words “incorporated,” “corporation,” “limited,” or “company” spelled out in full or as an abbreviation. For an LLC, the same goes in order to operate in the state – distinguishing the company as an LLC by including “Limited Liability Company,” ”Ltd. Liability Company,” “Limited Liability Co.,” “Ltd. Liability Co.,” “Limited, L.L.C.,” “LLC,” or “Ltd.” in the start-up name.
2) Annual reports required! Along with a $10 filing fee, annual reports must be submitted to the Secretary of State in the two months before or two months after the LLC’s anniversary month.
3) Filings are usually complete in one day. However, some of these state filing turnaround times are subject to change so be sure to check in, if needed.
4) Be aware of personal property tax. A business’s personal property, whether it’s office furniture or computers, is taxable for as long as the business owns it – for some businesses this might be considered a roadblock in growth of the company.
Got a couple more questions about forming an LLC or corporation in Colorado or are ready to start the process? Give call us at 1(877) 692-6772 or leave a comment below!