subject: The Colorado Limited Liability Company Is The Ideal Entity For Small Business [print this page] If you are starting a new business in Colorado, you are probably learning about legal entities and deciding on whether it is worth forming a Colorado limited liability company versus running a business without any protection.
Running and building a business can be financially rewarding but a smart entrepreneur should always be engaging in protection planning because it is inevitable that along the path of business growth, there will be challenges, setbacks and liability risk.
With the costs of starting and maintaining am LLC in Colorado being so minimal, attorneys and accountants universally recommend the use of the LLC for it personal liability protection as well as its other benefits.
A Co LLC offers a protection layer between you and your business activities. Basically, this means that if someone were ever to sue your business for a business obligation or liability, then you would not be personally liable just because you are the owner. If you run a business without the use of an asset protection vehicle, you are fully and completely at risk for any loss or liability generated by the business. There is no separation.
The state legislature understands that small business is required for keeping our economy healthy and so they passed the Colorado Limited Liability Company Act with this in mind. As a result, a single business owner can form an LLC and maintain it with only a few more formalities than a sole proprietorship and without any added tax complexity.
A Colorado LLC that is owned by just one member will report and pay taxes using the exact same process that the single owner would have used if it had operated without the limited liability company.
A final major benefit of using an LLC is that it provides your business with instant credibility. This is because there are not steps or formalities required for any person to claim they have a sole proprietor business.
On the other hand, if a business is run through an asset protection vehicle, it is a sign that he owners are serious about their business and have taken steps to ensure it is a legitimate business.
Now, there are many reputable sole proprietors out there but upon first glance it is hard to know who is legitimate and who is not. By having an LLC designation after your business name, it makes things easier to get started and get customers.
Visit Colorado Business Formation.com for more articles and information about the benefits of a Colorado limited liability company: http://www.ColoradoBusinessFormation.com
