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How to Incorporate in Colorado (May 2024 Update)

Meow Technologies, Inc.

Meow Technologies, Inc.

Colorado is a beautiful state filled with incredible natural scenery, diverse industry, and a thriving entrepreneurial spirit. With a growing population and a business-friendly legal environment, Colorado also offers significant potential as a location to start and grow a company. Incorporating in Colorado establishes your business as a separate legal entity protected from personal liability, allows you to more easily raise investment capital, and provides credibility with customers and partners.

This article will guide you through the key steps for incorporating in Colorado, help you understand the differences between corporations and LLCs, outline the taxes and maintenance requirements to operate legally, and provide additional resources to launch your venture successfully.

Benefits of a Colorado Corporation

The primary advantage of incorporating in Colorado or any state is personal liability protection. As a corporation, your personal assets like your home, car, and investments can't be seized to pay off company debts or legal judgments. A corporation is also the only entity that can issue and sell stock to investors, making it easier to attract investment capital. Corporations can continue operating perpetually and ownership is easily transferable through buying/selling of shares. These traits make the corporate structure appealing if you intend to grow the business significantly. Colorado also offers a simple incorporation process, reasonable fees to form and maintain your company, and low corporate taxes.

Steps to Incorporate in Colorado

1. Choose a Unique Business Name

The first step is choosing an original name for your Colorado corporation. You'll want to brainstorm memorable names related to your offering and ensure another local company isn't already using the name to avoid confusing customers. You can check name availability on the Colorado Secretary of State website. Your final business name must include a corporate designation like "Incorporated", "Corporation", "Limited", or their respective abbreviations. You can optionally reserve your preferred business name for 120 days while completing additional steps.

2. Appoint a Registered Agent

A Colorado registered agent is a person or company designated to receive important legal documents like summons, subpoenas, or notifications from the state government on behalf of your corporation. You can designate yourself, a company executive, or hire a professional Registered Agent service. The registered agent must maintain an address open during normal business hours in Colorado to accept documents. Using a professional agent service can provide more privacy since your role isn't public record.

3. File Articles of Incorporation

The Articles of Incorporation legally establishes your Colorado corporation with the state. The articles requires your corporation's name and purpose, the street addresses for your main headquarters and registered agent's office, your registered agent's name, details of stock shares to be issued, and the name/address of whomever is submitting the articles (which is publicly viewable).

You must file your Articles of Incorporation electronically on the Secretary of State website with the $50 filing fee. Once filed and approved, you will receive confirmation and access to your corporation documents via the Secretary of State portal. Filing the articles officially creates your company!

4. Obtain an Employer ID Number (EIN)

An EIN is essentially your business's social security number, issued by the IRS for federal tax purposes. As a corporation, you need an EIN to file business tax returns. An EIN also allows you to open company bank accounts, apply for business licenses, and hire employees. You can easily get an EIN for free direct through the IRS website.

5. File a Beneficial Ownership Information (BOI) Report

As of January 2024, nearly all corporations will need to file a BOI report after incorporating in Colorado. This provides identifying details on owners with significant corporate control (25%+ ownership stake) to federal agencies. Some industries like large operating companies, banks, investment funds are exempt from filing a BOI report.

For new Colorado corporations formed after 2023, your first BOI report must be filed within 90 days of incorporating. You'll need full legal names, birth dates, addressed, and ID numbers of your company's beneficial owners. The report also requires basic information on your corporation like addresses, EIN, etc.

6. Write Corporate Bylaws

Corporate bylaws establish operating rules regarding corporate management, finances, meetings, voting procedures, election/removal of officers and directors, ownership transfers. Bylaws help avoid internal disputes by codifying policies chosen by owners early on. While not legally required in Colorado, adopting clear bylaws is highly recommended.

7. Hold an Organizational Meeting

Shortly after incorporating, you should hold an initial meeting between founders and shareholders to take foundational actions like adopting bylaws, appointing directors/officers, issuing stock certificates, and opening corporate bank accounts. Details discussed during the first meeting should be logged in official meeting minutes included in the company records.

8. Open a Business Bank Account

A separate business bank account is crucial financial step because it segments company funds from your personal finances, which supports liability protections. The account also gives transparency to track income, expenses, payroll, taxes. To open an account, banks will request documents like your Approved Articles of Incorporation, Corporate Bylaws, and EIN.

For more information, take a look at our article on the key benefits of business checking accounts.

9. Register with the CO Department of Revenue

All Colorado corporations must register for state tax obligations through the Department of Revenue's Revenue Online portal. You'll need your EIN to create an account. Registration ensures you receive communications regarding state tax returns, forms, payments so you avoid penalties by staying compliant.

10. File Annual Reports and Taxes

After incorporating, you must file an annual report with updates about company details and pay an annual $10 fee to the Secretary of State to remain compliant. Colorado also levies a low 4.63% corporate income tax that is due annually. Federal taxes include estimated quarterly income tax payments, payroll taxes if you have over employees, and annual tax return.

LLC vs. Corporation in Colorado

While this guide focuses on Colorado corporations, forming a limited liability company (LLC) is alternatively an excellent option for small businesses. Compared to corporations, LLCs require less onerous record keeping, have flexible ownership rules, and taxation happens on personal returns vs. company returns avoiding double taxation. Corporations can better attract investors, but LLCs are generally simpler to run. Review key legal and tax differences to determine if an LLC or corporation makes most sense.

Conclusion

The process of legally forming and maintaining a Colorado corporation has been simplified in recent years to enable more entrepreneurs to turn ideas into real businesses efficiently. But it still entails following key steps like choosing a business name, designating a registered agent, filing articles of incorporation, writing bylaws, opening a bank account, staying compliant with state annual reports and taxes.

Meow Technologies is a financial technology company, not a bank or FDIC-depository insured institution. Likewise, Meow Technologies is not an investment adviser and none of the information presented herein should be relied upon as financial advice or a recommendation to make any financial decision nor should it be considered to be tax or legal advice. The information is the opinion of Meow Technologies for educational purposes and may not be suitable for all companies. Products, like the one described herein, are offered through Meow Technologies and are not advisory services which are only offered through Meow Advisory, LLC.** The FDIC’s deposit insurance coverage only protects against the failure of an FDIC-insured bank.**

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*Disclaimer: Meow Advisory LLC is a registered investment adviser. Registration as an investment adviser does not imply any level of skill or training.
For accounts opened through Atomic Brokerage LLC: Meow Advisory LLC has an engagement with Atomic Brokerage LLC (“Atomic Brokerage”), a registered broker-dealer and member of FINRA and SIPC , to bring you the opportunity to open a brokerage account. Brokerage services for customers of Meow Advisory LLC are provided by Atomic Brokerage. For more details about Atomic Brokerage, please see the Form CRS, General Disclosures, and the Privacy Policy. Check the background of Atomic Brokerage on FINRA’s BrokerCheck.
For subadvisory services for accounts opened through Atomic Invest LLC: Meow Advisory LLC has an engagement with Atomic Invest, LLC (“Atomic Invest”), an SEC-registered investment adviser, to bring you the opportunity to open an investment advisory account. Investment advisory services are provided by Atomic Invest. Companies which are engaged by Atomic Invest receive compensation of 0% to 0.85% annualized, payable monthly, based upon assets under management for each referred client who establishes an account with Atomic Invest (i.e., exact payment will differ). Atomic Invest also shares a percentage of compensation received from margin interest and free cash interest earned by customers with Meow Advisory LLC. Meow Advisory LLC is not a client of Atomic Invest, but our engagement with Atomic invest gives us an incentive to refer you to Atomic Invest instead of another investment adviser. This conflict of interest affects our ability to provide you with unbiased, objective information about the services of Atomic Invest. This could mean that the services of another investment adviser with whom we are not engaged could be more appropriate for you than Atomic invest. Advisory services through Atomic Invest are designed to assist clients in achieving a favorable outcome in their investment portfolio. They are not intended to provide tax advice or financial planning with respect to every aspect of a client’s financial situation and do not include investments that clients may hold outside of Atomic Invest. For more details about Atomic Invest, please see the Form CRS, Form ADV Part 2A, the Privacy Policy, and other disclosures. Brokerage services for Atomic Invest are provided by Pershing Advisor Solutions LLC (“PAS”), a registered broker-dealer and member of FINRA and SIPC.
Neither Atomic Invest nor Atomic Brokerage, nor any of their affiliates, is a bank. Investments in securities are Not FDIC insured, Not Bank Guaranteed, and May Lose Value. Investing involves risk, including the possible loss of principal. Before investing, consider your investment objectives and the fees and expenses charged by Atomic Brokerage and/or Atomic Invest.
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**Disclaimer: Meow Technologies is a financial technology company, not a depository, bank or credit union, and your account at Meow is not, itself, an FDIC-insured product.

Meow currently partners with three banking providers. Banking services are provided by Third Coast Bank SSB; Member FDIC, Grasshopper Bank, N.A; Member FDIC, and FirstBank, a Tennessee corporation; Member FDIC.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Grasshopper Bank, N.A, you deposit your funds into a deposit account at Grasshopper Bank, N.A. which sweeps those funds into deposit accounts across a network of Federal Deposit Insurance Corporation (“FDIC”)-insured banks, for up to the current standard maximum deposit insurance amount (“SMDIA”) of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including Grasshopper's ICS Deposit Placement Agreement. Grasshopper Bank, N.A. uses a third-party vendor and agent to help administer this sweep process. Visit https://www.intrafi.com/network-banks/ for a list of the banks and savings associations with which we/Grasshopper, N.A. have a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Grasshopper, N.A. or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of Grasshopper Bank, N.A, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheets for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Third Coast Bank SSB, you deposit your funds into a deposit account at Third Coast Bank SSB. If you also hold funds in a sweep program with Third Coast Bank SSB, Third Coast Bank SSB sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per receiving bank, for each ownership capacity or category, including any other balances you may hold at that receiving bank directly or indirectly through other intermediaries, including broker-dealers. Third Coast Bank SSB uses a third-party vendor and agent to help administer this sweep process. Visit Third Coast Bank SSB for a list of the banks and savings associations with which we/Third Coast Bank SSB have a business relationship for the placement of deposits at receiving banks, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Third Coast Bank or you). The current maximum deposit insurance amount for your funds is up to $50 Million in FDIC insurance through the sweep network of Third Coast Bank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and conditions and refer to the applicable rate sheet for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by FirstBank, a Tennessee corporation, you deposit your funds into a deposit account at FirstBank, which sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including FirstBank's ICS Deposit Placement Agreement. FirstBank uses a third-party vendor and agent to help administer this sweep process. Visit IntraFi for a list of the banks and savings associations with which FirstBank has a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by FirstBank or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of FirstBank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheet for additional information.

***FDIC insurance coverage is only available to protect you against the failure of an FDIC-insured bank that holds your deposits (and does not protect you against the failure of Meow or other third party). Your account with Meow and all services provided to you are subject to the Meow Terms of Service (“Account Agreements”) and other applicable terms and no other representations or warranties, express or implied, are provided to you except as expressly set forth in those written Account Agreements. If you have any questions regarding your account, please contact team@meow.com.

FirstBank Funds Availability Notice

FirstBank’s general policy is to allow you to withdraw funds deposited in your account on the first business day after the day we receive your deposit. Funds from electronic deposits will be available on the day we receive the deposit. In some cases, we may delay your ability to withdraw funds beyond the first business day. Then, the funds will generally be available by the SECOND business day after the day of deposit.