Business law

LEGAL REQUIREMENTS, AND PRACTICAL TIPS, ON HOW TO START A BUSINESS IN COLORADO

MY BACKGROUND.

I have been practicing law for more than thirty-five (35) years, I am an inactive CPA, and I have been involved in helping hundreds of people set up a business. I will help guide you, legally and practically, from start to finish in setting up your business.

1. Determine the name for your business.

You should first determine what name you would like and then (1) google it to see if anyone else in the United States or elsewhere, is using the name you would like to use (2) see if the name is available at the Colorado Secretary of State’s office and (3) check if the name has been registered at the United States Patent and Trademark Office (USPTO).

You certainly do not want to use a name that has been registered with the USPTO because that person has the sole right to use that name throughout the United States.

If the name is being used somewhere other than Colorado and is not registered with the USPTO, you and I will have a detailed discussion about the use of the name in Colorado.

I often tease my clients that they should choose a fun, entertaining name for their business. You should pick a name that will help you be successful in your business.

2. Determine where the principal place of business will be for the business.

When you file for your entity, you will need to state where the principal place of business will be, which may be your home if you do not have a business location for your business.

3. Select a good Certified Public Accountant.

From the very start, you should have a good CPA in your corner to provide you with income tax advice.

4. Determine the type of the entity for the business.

The general choices for you are a limited liability company (“LLC”) or a corporation.

You never want to be a sole proprietorship or a general partnership if there is more than one (1) owner.

I think about 99% of the businesses that I form are LLCs and not corporations.

We will discuss the best entity for you.

5. File for the creation of your entity at the Colorado Secretary of State’s office.

I will file the paperwork at the Colorado Secretary of State’s office to create your entity.

6. Prepare an Operating Agreement if you are a LLC or prepare organization meeting, bylaws, and buy-sell agreement among the shareholders, and issue stock, if you are a corporation.

I will work with you to make sure you have the necessary agreements and documents in the structuring of your business entity.

If you are the only owner of the LLC, the Operating Agreement is very easy. If there is more than one (1) owner and it is not a husband-wife situation, the Operating Agreement becomes more complex.

7. Obtain an EIN from the IRS and a Colorado state Identification number for the entity.

The EIN for the entity is like your social security number.

Whenever anything is filed with the IRS for your entity, you use the EIN.

Your CPA may help you obtain the EIN and state identification number.

8. Open a bank account.

Take a copy of your Articles of Organization (for a LLC) or Articles of Incorporation (for a corporation) and your EIN to the bank and open a bank account for your entity.

9. Talk to your CPA about setting up books for your business and talk to your CPA about what is required for IRS reporting purposes, and withholding and payment purposes, if your entity will have employees.

10. Make sure you inquire if your business must have any licenses to conduct business and then obtain the necessary licenses.

11. Prepare appropriate agreements for the running of your business.

You may need a good agreement prepared for your clients/customers to sign.

You may need an employment agreement prepared for a key employee.

12. Negotiate a lease if your business will have leased space.

I have prepared and reviewed many commercial leases and I will help you.

You must make sure the location’s zoning allows your business’s activities.

My Attorney Fees.

For the formation of your entity, I have a flat fee so you know what the cost will be. Depending upon what else you need help with, I am either able to quote a flat fee or I will charge you my normal hourly rate broken down into 6 minute increments.

If you have any questions about what I have stated above or would like my help, please call me at 303-782-4900.