Most Colorado business owners form an limited liability company (LLC) but are not fully aware of the pros and cons of doing so. This short section will give you an overview of LLCs and it function as a business entity in Colorado.
What is a Colorado LLC? A Colorado limited liability company (LLC) is an unincorporated but registered business entity whose members are protected from personal liability for company debts and are allowed to participate in the management of the business in any desired degree.
LLC Formation: An LLC in Colorado is created under Colorado law. It comes into legal existence when articles of orgnaization are filed with the Colorado Secretary of State.
LLC Legal Documents
The articles of organization and the operating agreement are the governing legal documents for the LLC. Ensure that you have a Colorado business attorney assist you in this matter.
Fundamental Characteristics of the Colorado LLC: Limited liability of LLC members for company debts, FLexibility of Management and Capitalization, Income tax treatment - unless the LLC elects otherwise, it will be treated as a partnership for federal income tax purposes if it is a multi-member LLC and as a Sole proprietorship it is a single-member LC
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