Colorado Processing Times and Fees
Most states offer both standard and expedited processing times for your corporation paperwork, and Colorado does too. To help you choose the best option for you, we have a list of the average wait times for each. Colorado charges the same fee for both standard and expedited filing options. You can see all Colorado fees under the “compare pricing” section in our incorporation center.
Choosing Between a Colorado S Corp and a C Corp
- Ownership rules: With a C Corp, you can have unlimited shareholders and stock classes. An S Corp is limited to one stock class and 100 shareholders. Shareholders in an S Corp must be legal residents or citizens of the United States.
- Taxes: A C Corp is taxed as a separate entity from shareholders. This means the C Corp pays taxes on the corporation's income, and individual shareholders may also pay taxes on the dividends they receive. S Corps are considered “pass through” entities and do not pay corporate taxes. Instead, the owners pay taxes individually on their shares of the income.
- Documents: A C Corp is the default corporate structure. In order to become an S Corp, you need to file IRS Form 2553, Election by a Small Business Corporation.
- Age requirement: Directors in a Colorado corporation must be at least 18 years old.
- Minimum number of directors: Your corporation must have at least one director.
- Residency requirement: Colorado does not require state residency for directors.
Other Requirements for Your Articles of Incorporation
- The name and address of your incorporator or incorporators
- The number of shares, and their class, that your corporation is authorized to issue
- The corporate name
- If your corporation is intended to last for a limited time, the date when it will cease to exist
Guidelines for Your Name
- Include “corporation,” “company,” “incorporated” or “limited” in your business name. You may also use an abbreviation of one of these words.
- Your name cannot be the same as, or deceptively close to, any business name or trademarks already filed or reserved with the Colorado Secretary of State.
- Do not use a name that suggests a business purpose that is different from what you do. For example, don't name your business "Fishing Supply World, Inc." if you sell office supplies.
Colorado Corporate Taxes & Reports
Keeping Corporate Records and Ongoing Filing Requirements
Colorado does not specifically require that you create corporate bylaws for your business, but it's a good idea. This document defines your business's operational structure and procedures. If you do create bylaws, they cannot conflict with your Articles of Incorporation. You do not have to file your bylaws. Just keep them with your other corporate documents. Creating a corporation in Colorado is a big step and we wish you luck in your endeavor. We can make the process easier for you with our incorporation service.
Christina Dixon is actively involved in local and national bar associations. She is a member of the Council for the ABA Section of Litigation, the Denver and Colorado Bar Associations’ Legal Fee Committees and the Sam Cary Bar Association and National Bar Association. Christina has extensive experience in insurance defense, insurance bad faith and insurance coverage litigation. She routinely advises claims personnel and insurance companies regarding day-to-day activities.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.