Make your dream of being your own boss come true by setting up a corporation in Colorado. The business environment in Colorado is optimistic and is conducive for new ventures. More and more people are willing to spend their disposable incomes to experience new products and services.
Establishing a corporation in Colorado is an easy process. The entrepreneurs must obtain a Tax ID in Colorado as soon as they start planning for the business. This helps them to avoid unnecessary delays in procuring finance from banks, opening bank accounts for business, hiring employees and is procuring the other necessary licenses and permits to carry on the business.
An easy to follow step by step guide to form corporation in Colorado
- Choose a name for your Corporation. The name must contain the words “incorporated”, “corporation”, “company”, “limited” or their abbreviations. The name of the company must be easily distinguishable from the other companies and it should create an instant connect with the customers. Entrepreneurs can check the Colorado Secretary of State Business name database for the availability of the selected name.
- The corporation must appoint a registered agent to carry on the legal documentation with the state. The registered agent can be an individual or a corporation.
- The next step is to file the Articles of Association with the Secretary of state of Colorado. The articles of incorporation contain important details about the name of the company, its corporate address, and the purpose of the company. It should also contain the name and addresses of the registered agent and the promoters of the company. The articles also mention about the number of and the class of shares, the corporation can issue. Entrepreneurs should mention the exact name of the company as written in the articles of incorporating while filing the application to obtain Tax Id in Colorado.
- Setting up a corporate records book that contains the important documents of the company like the minutes of meetings, share certificates, articles of incorporation etc. is the next step in the formation of a corporation. The book should be kept at the principal office of the corporation.
- The next process involves preparing the byelaws that are basic rules of the corporation, appointing initial corporate directors and conducting the first board meeting of the Directors and issuing shares to the members.
- All the corporations in Colorado are required to submit a periodic report every year to the Colorado secretary of State. The report can be filed online and should be submitted within three months of the corporation’s anniversary month.
- The corporation must obtain Tax ID in Colorado to start operating business in the state. It is unique nine digit number given by the IRS and is legally required for Corporations.