Why Start a CO Corporation?
Not only is Colorado a beautiful
state, but it also offers businesses a
ride range of
programs and funding
to help them get started. Your
corporation may be able to take
advantage of these programs, provided
it meets qualifying criteria.
For example, the Advanced Industries Business Accelerator Grant provides funding to accelerator programs in Colorado that have developed or are developing programming for Colorado early-stage companies in the advanced industries.
For many entrepreneurs looking to start a larger business, a CO corporation may be the best choice. As a corporation, your business is able to buy and trade stock, and when it comes to excess profits, corporations offer more flexibility than a limited liability company (LLC). A corporation is allowed to pass income and losses to its shareholders, who report taxes on an individual tax return at ordinary levels.
Is an LLC Better Than a Corporation?
It all depends on your goals. For
smaller businesses, limited liability
companies are usually a better option.
An LLC is easier to set up and
receives many of the same benefits as
corporations, but with less
Learn more about forming a Colorado LLC so you can decide which business entity is right for you.
Benefits of Forming a Colorado C Corporation
Benefits of Forming a Colorado S Corporation
It offers several advantages similar to those provided by a C Corp including, but not limited to:
- Options for creating, transferring and selling stock, though not as many as a C Corp
- The capacity for up to 100 shareholders
- Simpler rules than those that apply to C Corporations
- Easy transfer of ownership simply by selling your stock
- The possibility of saving money by allowing you to pay less self-employment tax
In this guide, you’ll find information on naming your corporation, getting a Registered Agent, the fees you’ll need to pay, business taxes and much more. We also cover what you'll need to register your corporation and how you'll interact with the Secretary of State in Colorado.
How to Form a CO Corporation Yourself in 6 Steps
Choose a Unique Business Name and Complete a State Business Search
Every Colorado business must have a
unique name that isn't currently
claimed by another business in the
state. If you can't think of a name,
try using our
Business Name Generator
to gather ideas. You'll need to follow
a few naming rules, which you can read
about in detail on the
Colorado Corporation Names
Once you’ve landed on a name, you’ll need to make sure it’s available in Colorado. To see whether another company in the state is using your preferred business name, use our tool to do a Colorado entity search. You can also carry out a name search on the state's website.
Provide an Official Address for your Corporation
All CO corporations must have a
designated address. It could be your
residence address (if you’re running
the company from your home), a
building where your office is located
or any physical address of your
choice. The address can be outside the
state of Colorado and
can be a P.O. Box.
You may also be able to use a virtual mailbox for your business address. Bizee can provide you with a Colorado virtual mailbox where we'll receive your mail and scan it for your online review. This can be especially helpful if you run a home-based business and don't want your home address published as part of your business public record.
Assign an Registered Agent
Someone who receives official
correspondence and is responsible for
filing reports with the Colorado
Secretary of State is known as a
Registered Agent. Every Colorado
required to have a
You can fill this position yourself, assign another manager in your business or use a Registered Agent service. If your Registered Agent in Colorado is a person, they must have a physical street address in Colorado and must be available during business hours to receive important documents on behalf of your company. You'll appoint your Registered Agent when you file your Articles of Incorporation with the Secretary of State and officially create your corporation.
All of Bizee’s business formation packages include Registered Agent service. It’s free for the first year and just $119 per year after that. You can also access a digital dashboard to view any document we've received on your behalf.
File Your Articles of Incorporation with the Colorado Secretary of State
Once you've gathered all the information for your corporation, you’ll need to file your Articles of Incorporation online with the Secretary of State. This will officially create your business.
Filing your Articles of Incorporation
required and they
should be filed online
via the state's digital portal. Or if
you wish, Bizee can file it on your
CO Corporation filing
fee is $50.
You only need to file your Articles of Incorporation in Colorado once, but once a year thereafter, you'll also need to file a periodic report electronically with the Secretary of State in CO. Simply search for your business record in order to complete it. Bizee can remind you about this every year, or we can do it for you if you have us handle the paperwork.
What are the fees and requirements to incorporate in Colorado?
During the three-month beginning with the first day of the entity’s anniversary month of incorporation.
Get an Employer Identification Number (EIN) from the Internal Revenue Service
You'll need an EIN to identify your business to the IRS. You'll use this number for filing and paying taxes, submitting payroll information and payments for your employees and opening a business bank account. You can obtain one directly from the IRS, or Bizee can get one for you as part of the CO corporation creation process.
A set of rules that govern how a
corporation will be run, bylaws detail
how many directors the corporation
will have, whether the board of
directors will have annual meetings
and what the voting requirements will
be, among other things.
Some states legally require companies to create bylaws, however the state of Colorado is not one of them. Regardless of legalities, it's always a good idea to write and follow bylaws to protect your business from any future changes and events.
Types of CO Corporations
The CO Secretary of State has a professional occupation resource that may help with determining if you can form a Professional Corporation. If you're unsure, check with the Secretary of State to confirm whether your business should and can be a Professional Corporation.