An Overview Of How To Pay Colorado LLC Taxes

Although most people are aware of businesses and individuals paying taxes annually, if you form an LLC, you may wonder if there are any additional taxes that you need to pay. Creating a limited liability company is done for the benefit of the protection that it provides. Whether you are in Colorado, or any other state that allows LLCs, you know how beneficial they can be. If you’re worried about the taxes, you shouldn’t be, and there are many reasons for this. Let’s discuss how to set up an LLC, why you will need one, and why paying your taxes for your limited liability company is really not that bad.


Colorado LLC Taxes

The Basics Of LLCs In Colorado

In Colorado, setting up an LLC is something that anyone can do. If you have an existing business, or if you have multiple companies, it’s good to put all of them under the protection of a limited liability company. By definition, the LLC is a separate entity in and of itself. Therefore, when you are approached by a lawyer that wants to sue you on behalf of their client, they are going to be suing the limited liability company and not you. It protects your assets, and that’s why setting this up is so vitally important, especially if you are incredibly successful.

How To Set Up LLCs In Colorado

Setting up LLCs is not as hard as you would imagine. It begins with a visit to either the Secretary of State office in person or you can simply go to the website. If you go to the website, you can find the paperwork that is needed for setting this up quickly. You need to choose a name which is what you need to accomplish early on. You should put some forethought into this. There may be other companies that are similar to your own, or perhaps someone simply has a name that is similar to the one that you would like to choose, and that should always be avoided. There could be technicalities such as someone suing a company similar in name to the one that you now have and you could be involved, at least in part, with this problem. Therefore, you need to verify that the name that you want is currently available, and then you will begin the process of filling out the paperwork.

Filling Out The Articles Of Organization

The articles of organization are simply the papers that you need to fill out and submit if you are filing for a Colorado LLC. This is a downloadable document that you can edit with Adobe Acrobat if you have it on your computer. It’s good to have the professional version so that you can also sign it digitally. It will start with the name that you have chosen at the top. You do need to have a physical location for your limited liability company. That will also be displayed. You will also consider getting a registered agent. A registered agent is a person, or a company, that will serve as the point of contact for paperwork that is coming your way. Finally, you need to list all of the members that you have at your LLC. This could also be your managers. One of those members will have to be designated at the very least, and you should also list to his filing his articles of organization. The filing process can be done online and if you do it there, the cost will be $50 for the filing fee. If you want to, you can also fill out an operating agreement. This is simply going to state how you’re going to operate your business.

Taxes And LLCs

You will have to pay taxes on your LLC. You also need to fill out a periodic report. The amount of taxes can be determined by contacting the Secretary of State office. If anything is changed, they can also report those changes to you. It is good to pay these in advance as you can face stiff penalties if you are late. It’s not as much as you would pay in other states that are much more expensive. Once you understand what that amount is, and when the due date is coming up, they pay it and get it behind you as you are focusing on running your business.

Setting up an LLC is a very straightforward process. However, it is always recommended that you work with professional companies that do this every day. By doing so, they can be with you as you are filling out the paperwork, at least digitally, or they can simply fill out everything for you if you pay them. They will also know if there are any problems if you have already started. They can fix those right away. Overall, it’s a good idea to work with a professional business that handles LLCs in Colorado. You can also ask them how much the taxes will be so that you will know exactly how much to pay which is under 5% of the money that you make.

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