Although starting a new business is a thrilling endeavor, the incorporation process may be challenging. This post will assist you in completing the process of incorporating your business in Colorado with ease.
Follow these steps and you’ll be ready to launch your business in no time.
Pick a Business Structure
You must select the business structure that best meets your needs before you begin the formation procedure. There are numerous choices, including:
- Partnership Limited Liability Company (LLC)
- Corporation (S-Corp / C-Corp)
- Sole Proprietorship
Before making a choice, carefully consider all available business structures because each one has advantages and disadvantages of its own. For example, while a sole proprietorship may seem like the right choice for a single-person business, there may be tax benefits to structuring as an LLC.
Avoid Online Legal Services
While companies like LegalZoom offer to help register a new business, it’s best to handle this process directly with the state. You’ll face unnecessary fees through third-party service that the state doesn’t always charge. If you do have legal questions about starting a business, you’ll want to defer them to a local attorney.
Choose a Name / Brand
Choosing a name for your company is the next step after deciding on a business structure. Your selected name must be distinct; therefore, make sure to check the availability of the name on the Colorado Secretary of State website before deciding on it.
Your name will also lend itself to a website name and other branding materials. It may be worth it for you to consult with a Denver branding agency to help you properly select the right name for your business. Not only will this become your domain, but you’ll likely print your business name on different forms of stationery, signage, merchandise and more. You’ll want your name to be memorable and descriptive.
File Articles of Incorporation
Articles of incorporation must then be submitted to the Colorado Secretary of State. This document contains important details concerning your company, such as its name, objectives, registered agent, and physical address. A filing fee that is related to your business structure must also be paid.
You might need to get extra licenses and permits in order to legally conduct business in Colorado, depending on the nature of your industry. Visit the Colorado Business Express website or get in touch with the Colorado Department of Regulatory Agencies to find out which licenses and permits you require.
Get An Employer Identification Number (EIN)
You must receive an Employer Identification Number (EIN) from the IRS if you intend to hire staff members or create a business bank account. On the IRS website, you can submit an online application for an EIN.
Register for State Taxes
Next, you must register your company in Colorado for state taxes. This covers sales tax, income tax, and any additional taxes that apply to your company. To register for state taxes, go to the website of the Colorado Department of Revenue.
Congratulations On Your New Business
It can be intimidating to incorporate a business in Colorado, but by following these instructions, you can simplify the procedure and launch your company with confidence. Do your homework carefully, and if you have any questions or concerns, be sure to talk with a Denver, Colorado business attorney.
Congrats on your successful first step toward entrepreneurship!