If you already have an LLC in another state and want a Colorado LLC, then how to start an LLC would be somewhat different. You must register as a foreign LLC. We have here a guide on how you can qualify and register for a foreign LLC in Colorado.
On this page, you’ll learn about the following:
Forming an Colorado Foreign LLC
A foreign LLC does not need to be a company from another country but a business formed under the laws of another state. To start a foreign LLC in Colorado, you need to register it with the Colorado Secretary of State.
Step 1: Choose Colorado Foreign LLC Name
Obtain a name reservation certificate and submit it with your foreign qualification requirements at the Colorado Secretary of State. Your LLC’s legal name outside of Colorado will be listed on the application, along with the name it will use in Colorado. Take note of the requirements for naming your LLC.
Check name availability at Colorado’s business entity names and reserve your LLC name.
Step 2: Select Colorado Foreign LLC Registered Agent
You’ll need a registered agent to form a foreign LLC in Colorado and take note that a Colorado registered agent must have a local address. Here are three of the best LLC services on our list:
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Step 3: File Registration of Colorado Foreign LLC
Fill out and submit a Statement of Foreign Entity Authority via email to [email protected] or by mail to Colorado Department of State, 1700 Broadway Suite 550 Denver, CO 80290.
Include the following:
- LLC’s full legal name.
- A fictitious name or a DBA (only if your LLC’s legal name is not available); Attach a statement of adoption of the fictitious name signed by all LLC members.
- LLC’s principal office and mailing addresses.
- LLC formation state and date.
- Registered agent’s name and address in Colorado
- Date when your LLC will start operations in Colorado.
- Credit card information on the last page of the form for the $100 application fee.
The LLC cost in Colorado, even for foreign LLCs will differ between online filing and by mail.
Step 4: Determine How Your Colorado Foreign LLC is taxed
Foreign LLCs are also subjected to the Colorado Business Privilege Tax, and they must file LLC annual reports each year.
Note that forming a foreign LLC would be good for your business as you can legally operate in a different state thus reaching a larger market and opening more opportunities for higher profit.
Steps to Filing Colorado Foreign LLC Online
Time needed: 5 minutes
When you start a foreign LLC registered in Colorado, you need to pay $100 as filing fees. For the online filing process, one has to follow the online filing guidelines. Here’s what you need to do.
- Go to the Official Website
To start the process, visit the Colorado Secretary of State portal. Select the ‘File a Business Document’ from the list given and go to the business document page.
- Create a New Record
To start registering your Colorado foreign LLC, click on the ‘File a form to create a NEW record’ option on your screen.
- File a Form
In this section, you will get a list of business types to form. Select “foreign entity” as you are intended to register an out-of-state entity in Colorado.
- True Name Availability Search
In this section, you need to enter the exact same name of your LLC. In the case of a foreign LLC in Colorado, you have to mention the exact same name of your LLC that is already formed in other states.
- Optional Assumed Entity Name
If you wish to give your foreign LLC in Colorado a new name, then you can select this option. On the other hand, if you want to stick to the exact name of your LLC then select the option “no” and move on to the next section.
- Statement of Foreign Entity Authority
This is the main section of the registration process. You will get the form/statement to fill. Enter all the relevant information related to your LLC and click on the “Submit” button. The following sections are to be filled out:
> Form details
> Principal Address
> Registered Agent information
> Additional Information
> Delayed Date
> Email Address
> Details of the individual who is filing the document
After entering all the information, hit the “Submit” button to go to the payment page
- Payment
Finally, make the payment of $100 to complete the online registration process for the Foreign LLC in Colorado.
It is convenient plus easy to file for the foreign LLC if you are doing it online. The steps are very easy and that’s why it’s possible to go along with the steps and form the foreign LLC in Colorado.
After Forming Colorado Foreign LLC
Here are added things you need to accomplish after forming your Colorado Foreign LLC
- Obtain Business Licenses. Find the business licenses you’ll need using the Business License Search.
- File LLC annual reports and Business Privilege Tax.
- Pay State Taxes like sales tax; you’ll need an EIN for your LLC.
How Much Does It Cost to Register a Foreign LLC in Colorado
To register as a foreign LLC in Colorado, you can file it online by paying $100 to the Colorado Secretary of State
Foreign LLC registration fees often depend on the complexity and nuances associated with expanding a business similar to the one from its home state into another jurisdiction like Colorado. These fees encompass the charges imposed by the State of Colorado’s government body, which are essential for obtaining legal recognition and credibility. While it is important to comply with these requirements to avoid any legal issues, it is equally vital for businesses to allocate their capital wisely, understanding that each penny spent should contribute to the company’s growth.
In Colorado, foreign LLC registration fees generally consist of several components that vary depending on the situation and additional specific needs. First and foremost, entrepreneurs are typically obliged to pay the foreign LLC filing fee. As the name implies, this fee is the initial cost applicant businesses face when applying to establish a foreign LLC in the state. Gone are the days of simply mailing in a form; the vast majority of applications now require online submission. This modernization assists applicants by streamlining the process, in turn saving time and effort while avoiding any delays associated with postal services.
Another cost to bear in mind relates to the appointment of a registered agent. All registered business entities within Colorado are required to have a designated representative available to receive important legal documents or notices on behalf of the LLC. This requirement helps to ensure that businesses are reachable and accountable to the local authorities. While some entrepreneurs may choose to act as their own registered agent, many opt to designate a professional agent to handle such matters, especially when they do not reside in Colorado or would prefer to maintain privacy.
Additionally, those eager to set up a foreign LLC will also need to consider the cost associated with obtaining a Certificate of Good Standing or a Certificate of Existence. These certificates provide legal evidence that the LLC has fulfilled its obligations and is operating in good standing in its home state. Procuring one and submitting it during the registration process demonstrates the LLC’s credibility to state authorities as a tax-paying and compliant entity. As such, obtaining these certificates adds a necessary expense to the registration process.
Lastly, while not directly tied to the registration costs of a foreign LLC, it is essential to consider any other incidental costs that might arise. These additional costs could result from engaging a legal expert or hiring professionals to assist with the registration process. Engaging legal counsel can be advantageous, especially for entrepreneurs who lack expertise in legal matters or for foreign citizens unfamiliar with Colorado-specific regulations and requirements.
In summary, determining the cost of registering a foreign LLC in Colorado involves factoring in several components. By being fully aware of all the fees and services required for a successful registration, entrepreneurs can mitigate any surprises and set realistic expectations for their bottom line. Spanning from initial filing fees to appointing a registered agent, acquiring essential certificates and any incidental costs, one must maintain a sound financial strategy throughout the process. Weighing the associated expenses carefully will enable businesses to channel their resources effectively, ensuring their endeavor in Colorado starts off on the right footing.
F.A.Qs
If your LLC is formed under the laws of another state, it is referred to as a foreign LLC in Colorado.
Businesses incorporated outside of the state where they operate must have “foreign qualifications” issued in the other states.
A domestic LLC is a company registered in Colorado as an LLC. The entity type that has a physical presence in another state is a foreign LLC.
In Conclusion
Starting a foreign LLC in Colorado does not require a lot of documentation or tasks. However, it is always good to seek help from a professional when it comes to running your business. Get a professional registered agent and form your foreign LLC anywhere without a hassle.
