There are steps one must take when planning to start Colorado business registration and operate their business legally within the state.
- Decide on the business name that you want.
- Determine the business entity type that is applicable.
- Visit the Colorado Secretary of State and start processing the registration of your business.
- Get the assigned number for your federal tax ID.
- Process a bank account for your business in order to have a debit or credit card.
- Visit the Colorado Department of Revenue with regards to your taxes.
- Process all the required permits and licenses by the state of Colorado.
Remember not to rush when choosing a business name because you might regret it in the future. Choose a name that will be easily remembered by the people. Make sure to secure the domain name of your business in order to launch a website that is the same name. If the domain name is not available, it is best to find another name that can be pronounced easily and conveys a positive vibe to the public.
There are different types of business entity including LLC or Limited Liability Company, Sole Proprietorship, Corporation and Partnership. Knowing the definition of each type and the difference between them will help you decide which business entity suits your company.
The Colorado Secretary of State will expect to receive the formation documents from your business application and the only way to get this done is through online because mailing is prohibited. There are different fees assigned depending on the type of business entity you are applying for.
Every business can be identified by the IRS through the federal tax ID number or EIN (Employer Identification Number). This is the same number you will use when applying for various accounts for your business such as bank account, employee payroll, filing taxes and receive financing. This serves as a social security number but for business purposes.
If you want to open your business as soon as possible, processing Colorado business registration sooner is recommended.