Limited Liability Company Colorado

Leading Colorado Limited Liability (LLC) Law Firm in Denver CO

Call Our Denver Business Lawyers for Trusted Advice

(720)-941-7200 or toll free (866) 601-5518.

Colorado Business entities known as limited liability companies (LLC) and limited liability partnerships (LLP) are relative newcomers to the business entities recognized under Colorado law. These business entities are commonly used in Colorado small businesses. However, many Colorado business owners are unfamiliar with the statutory rules that govern them.  Theodore watson & Associates’ Denver limited liability company lawyers bring insight into these corporate structures and helps guide its clients in navigating their way through disputes involving business disputes and personal liability.

Theodore Watson & Associates can help clients understand the operating agreements they signed (and often never read) to identify their rights and resolve disputes in their favor. When Theodore Watson & Associates cannot reach an out-of-court resolution with operating managers, the firm’s  Denver skilled trial attorneys can maximize client success in the courtroom.

Services

• Formation and incorporation
• Guidance with regulatory matters
• Business contracts for services
• Outside counsel services
• Breach of fiduciary duty representation
• LLC operating agreements
• S corporation assistance
• Contract drafting
• Dissolution
• Litigation

 

Comprehensive Business Law Services

Our Denver small business lawyers have successfully counseled and litigated a variety of legal issues associated with Colorado LLCs. We can help you with:

• Formation and Incorporation with the Secretary of State
• Advising on the best ways to avoid personal liability
• Fiduciary duty matters
• Operating agreements
• Contracts for Services
• Start-up counseling
• Colorado partnership law disputes
• Contracts

LLC vs Corporation

Colorado small business owners form an LLC because of the major benefits. However, to know whether or not the limited liability company is the best entity for you would depend on understanding the benefits. The major benefits of LLC formation can be summarized as follows:

• Limited exposure to personal liability (so long as you honor statutory requirements)
• Better tax benefits (flow-through taxation versus corporate double taxation)
• Business Operational Flexibility (operate your business the way you want)
• No Ownership Restrictions or Member Limitations
• Less formality required through the Colorado Secretary of State as compared to corporations

 

What is an LLC or Limited Liability Company?

Colorado Limited Liability Companies were created by statute in 1990. The LLC has some of the attributes of a sole proprietorship, a general partnership and a corporation. For tax purposes, it is treated as a partnership. In understands what is an LLC, our Denver business lawyers educate our clients that the LLC has members rather than shareholders. It has a manager or managers instead of a board of directors. Management may be vested in the members or it may be vested in the manager(s). It is essentially a business entity created by contract between the members, much as a general partnership. However, in order to be legally recognized, it must file Articles of Organization with the Department of State. The members are protected from personal liability for the acts of the LLC, much like shareholders of a corporation. The LLC differs from an S corporation in that it is not restricted in the number or types of individuals or other entities that may be members. It also differs from a limited partnership by not imposing personal liability on members for participating in the management of the LLC. See the following topics directly from the IRS:

• Forming a Limited Liability Company
• Single Member Limited Liability Companies
• LLC Filing as a Corporation or Partnership
• Possible Repercussions
• Forms for Limited Liability Companies
• Form 8832
• Where to File Tax Returns – Addresses Listed by Return Type

 

A Limited Liability Company (LLC) is a business structure allowed by Colorado statute. LLCs are popular because, similar to a corporation, owners have limited personal liability for the debts and actions of the LLC. Other features of LLCs are more like a partnership, providing management flexibility and the benefit of pass-through taxation.

Owners of a Colorado LLC are called members. Since most states do not restrict ownership, members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit “single member” LLCs, those having only one owner.

A few types of businesses generally cannot be LLCs, such as banks and insurance companies. Check Colorado statutory requirements and the federal tax regulations for further information. There are special rules for foreign LLCs.

 

Colorado LLC Formation – Why Have A Lawyer?

When forming a Colorado limited liability company new business owners must be aware of deficient formation practices.

• Do you have an LLC operating agreement?
• Do you know how to avoid personal liability?
• Are there partnership agreements for other partners?
• Do you know your legal obligations to the LLC?

Forming the business is the easy part. However, when you are sued sometimes it is too late to undo the damage. This is why you should have one of our experienced Denver business law attorneys can be an investment for your future. We show you how to incorporate a business the right way.

As compared to online LLC formation companies that suggest you do not have to worry about the legal requirements, our attorneys help you to be proactive and understand your knew undertaking under Colorado LLC law.

 

Make Informed Business Decisions

If you are contemplating starting up a new business, you may want to take the time to make an informed decision as to what type of legal entity best suits your needs. There are very subtle laws that apply to S Corps, C Corps and business partnerships in Colorado. This is the attorneys at Watson & Associates, LLC can provide sound advice about the formation of your new limited liability Company (LLC).

 

General Counsel Services for LLC’s

As your Colorado LLC gets on the way, you can now enjoy the benefit of having your personal Denver business and general counsel attorney only a phone call away. Our law firm is available to help with:

• Governance
• Buying and selling transactions
• Dissolution of limited liability companies
• Financial disputes
• How to avoid personal liability
• Litigation support
• Government contracts law

 

LLC Classifications

The federal government does not recognize an LLC as a classification for federal tax purposes. An LLC business entity must file a corporation, partnership or sole proprietorship tax return.

An LLC that is not automatically classified as a corporation can file Form 8832 to elect their business entity classification. A business with at least 2 members can choose to be classified as an association taxable as a corporation or a partnership, and a business entity with a single member can choose to be classified as either an association taxable as a corporation or disregarded as an entity separate from its owner, a “disregarded entity.” Form 8832 is also filed to change the LLC’s classification.

Watson & Associates help LLC owners in all Colorado locations including: Colorado counties including Adams County, Alamosa, Arapahoe County, Archuleta, Baca, Bent, Boulder County, Broomfield, Chaffee, Cheyenne, Clear Creek, Cherry Creek, Commerce City, Conejos, Costilla, Crowley, Custer, Delta, Denver, Dolores, Douglas, Eagle, Englewood,  Elbert, El Paso, Fremont, Garfield, Gilpin, Grand,Greeley, Gunnison, Hinsdale, Huerfano, Jackson, Jefferson, Kiowa, Kit Carson, Lake, La Plata, Larimer, Las Animas, Lincoln, Littleton, Logan, Mesa, Mineral, Moffat, Montezuma, Montrose, Morgan, Otero, Ouray, Park, Phillips, Pitkin, Prowers, Pueblo, Rio Grande, Rio Blanco, Routt, Saguache, San Juan, San Miguel, Sedgwick, Summit County, Teller, Thornton,Washington, Weld, and Yuma.

 

What Does It Mean To Have Limited Liability?

Limited liability simply means that everybody associated with the company is not liable for damages beyond their initial investment and cannot be held vicariously liable. In easier terms, a person who puts money into a Colorado LLC only risks losing the amount of their investment and will not have to pay any more if the company is still in debt. It is a way of limiting the risk of investing in a company.

Note: Partners are not shielded from negligent behavior.

 

How is a Limited Liability Company Different From a Limited Partnership?

The difference is control. In a limited partnership, the partner has limited liability unless they act in control of the company’s actions, in which case they lose their limited liability. In an LLC, liability is limited regardless of participation in control.

 

Do I Need an Attorney Experienced with LLCs?

Starting a business is a very difficult but potentially lucrative option. To understand the distinctions and rights that attach to your business and its organization, it is a good idea to discuss your ideas with an attorney. A lawyer experienced with Colorado limited liability companies can help you incorporate your LLC and explain the tax and organizational benefits of the limited liability structure.

 

Contact Watson & Associates LLC

To speak with a Denver lawyer at Watson & Associates about a limited liability partnership dispute or a LLC dispute, call (720) 720-9200 or toll free (866) 601-5518, or contact the firm online.

 

Rocky’s Locations

If you own a Colorado limited liability company (LLC) or some other form of a business partnership, Watson & Associates can provide advice regardless of your location in Colorado. We can provide assistance to construction companies, retail and service providers in Colorado counties including Adams County, Alamosa, Arapahoe County, Archuleta, Baca, Bent, Boulder County, Broomfield, Chaffee, Cheyenne, Clear Creek, Cherry Creek, Commerce City, Conejos, Costilla, Crowley, Custer, Delta, Denver, Dolores, Douglas, Eagle, Englewood, Elbert, El Paso, Fremont, Garfield, Gilpin, Grand,Greeley, Gunnison, Hinsdale, Huerfano, Jackson, Jefferson, Kiowa, Kit Carson, Lake, La Plata, Larimer, Las Animas, Lincoln, Littleton, Logan, Mesa, Mineral, Moffat, Montezuma, Montrose, Morgan, Otero, Ouray, Park, Phillips, Pitkin, Prowers, Pueblo, Rio Grande, Rio Blanco, Routt, Saguache, San Juan, San Miguel, Sedgwick, Summit County, Teller, Thornton,Washington, Weld, and Yuma.