So, you're serious about starting your business! Otherwise you wouldn't be reading this right now. I'm happy you're here! Let's get you set up with your LLC.
What are the steps to establish my LLC?
Step 1. Go to your State's Secretary of State website.
For this example, we're going to learn how to establish an LLC in Colorado.
Colorado Secretary of State website:
Step 2. Fill out the online form to file your business as an LLC.
Let's go through these steps together:
Entity name - Step 1 of 11 (In Colorado, there are 11 steps)
Entity name - Step 1 of 11 (pt 2)
*Make sure you include one of these terms or abbreviations in the name, or you'll have to amend your business filing and pay another fee to add it after the initial filing. Learn from my past mistakes!*
Limited Liability Company
Ltd. Liability Company
Limited Liability Co.
Ltd. Liability Co.
Business address and mailing address - Step 2 of 11.
This information will be public. If you need help getting a P.O. box, head on over to the USPS store website.
Registered agent - Step 3 of 11
If you are the business owner, then choose individual and provide your address. Save time and click the box next to Same as principal office address.
For this step, Colorado asks your consent, so provide your consent to be the registered agent for your business.
Management & members - Step 4 of 11
For this step, if you are the business owner and you manage your limited liability company, then select "Members." If the members of your business have chosen someone to manage the LLC, then select "Managers."
If you own and work for your LLC, select "Yes" for the prompt: *There is at least one member of the limited liability company.
Formation - Step 5 of 11
Are you a person? (I hope so!) If you are a person and you meet the criteria below, select "Indvidual." If you aren't sure, read the definition below and then answer the questions:
"Person means individual (must be at least 18 years old), entity, state or other jurisdiction, estate, or trust. You can enter more than one. The person forming the entity is not necessarily the owner. Your business is unique. We don't know every situation your business is facing, and we can't answer legal-based questions. We suggest talking to an attorney or business advisor if you have questions."
Enter the name and address of the person who is forming the limited liability company.
Persons forming the LLC review - Step 5 of 11
Review your information, add another person if you're a co-owner with someone else, otherwise, onto step 6!
"You entered the following persons forming the LLC. If you made a mistake, you can correct it here. Otherwise, click Next to proceed."
Additional information (optional) - Step 6 of 11
This step is optional, and isn't really necessary to start your LLC. Here are FAQs for situations you'd want to add additional information. Click no and move to step 7!
Delayed effective date - Step 7 of 11
Unless you have specific reasons to delay your effective date, select "Yes" for the question "Do you want this filing to take effect immediately?"
Filer information - Step 8 of 11
For this step, in Colorado, you will read through a perjury notice and acknowledge that you read and understood the notice.
Notifications - Step 9 of 11
You're almost done, babes! This step just asks if you want notifications by email or text. I recommend signing up for email notifications for your filing dates. Also, add your filing dates to your calendar, recurring yearly so you don't forget to file your taxes and financial documents to stay in good standing.
Review your filing - Step 10 of 11
Look over your filing, verify that everything is spelled correctly, and click Next!
Payment - Step 11 of 11
You made it! Make your payment and receive your certified Articles of Organization documents! In Colorado, it costs $50 to file your business as an LLC, but this cost varies from state to state and often creates unnecessary barriers to entry jusst to start your business. See how easy that was? Congratulations! You now are the official owner of your new Limited Liability Company!
We'll cover your next steps in the next articles about registering for your Sales Tax License, Opening a business bank account, and Getting your EIN.