Register your business with your state and local authorities
A Limited Liability Company is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a sole proprietorship and partnership. The actual formation is a little more complex and more formal than that of a sole proprietorship and/or partnership. A LLC does have members but can also be formed by just one person (=1 member). Basically – a LLC receives the corporation’s protection from personal liability for business debts and the tax structure of partnerships and sole proprietorships.
Advantages of a Limited Liability Company (LLC)
– Members have limited liability
– Actual taxation might be more benfitial for the members
– Business form looks more professional than a sole proprietorship in many cases
– A LLC only needs one member
Disadvantages of a Limited Liability Company (LLC)
– A LLC cannot seek funding by offering shares to shareholders
– The liability protection can be removed by a judge if it is obvious that the members did not run the business as a LLC but as a partnership / sole proprietorship
– Less laws that govern the LLC. This could be a problem in complicated business situations
Fees – State of Colorado
http://www.sos.state.co.us/pubs/info_center/fees7_01_04.htm
Online Business Registration with the State of Colorado
http://www.sos.state.co.us/pubs/business/update09_15_04.htm
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