As a business owner in Colorado, you may be considering setting up a limited liability company ( LLC). Many people opt for this as there are lots of benefits that come with registering your business as this type of entity.
Having the right documentation in place from the beginning helps you to make sure you’re complying with your legal obligations as well as assisting you with running operations day-to-day.
Below are two of the documents you should have in place at the inception of your Colorado business.
1. Articles of organization
This document is used to officially establish your business. You’ll need to give information such as your company name, the names of the people forming managing it and the relevant contact details. Once you have checked that you have included all the required information in the document, you must file it with the Colorado Secretary of State.
2. Operating Agreement
You should use your operating agreement to denote how the finances of the business should be handled and by whom. It will also describe how operations should run, including dealing with difficult topics such as how the business should dissolve and the ownership rights of each member. By covering all the important decisions at the outset, it can be used to avoid disputes among members later down the line.
An LLC is one of the most common entity types for a business due to the significant legal protection it can provide to you and your company. You can ensure that you have all the required paperwork in order by seeking the assistance of a legal professional.