How to Incorporate a C Corp in Colorado

Choose a unique name for your C corporation

A unique and recognizable name is essential for making your C corp stand out. Ensure this name does not match any current Colorado business names using the Colorado Business Database Search. All C corporation names in Colorado must have the words “Corporation,” “Company,” or “Incorporated” in their company name in some form.

Reserve your name

Are you worried about losing your C corp name? For a small fee of $25, Colorado offers an optional name reservation service that can hold a company name for up to 120 days. These reservations can help reduce the stress of finishing the rest of your incorporation.

Determine your registered agent

A registered agent for a business in Colorado needs to have a physical address in Colorado. This person will maintain your company’s important legal documents, so hire someone you can trust. Your agent can be almost anyone, including a hired professional, close friend, or yourself. Many C corps employ a professional to avoid legal trouble later on.

File your Articles of Incorporation

Filing the Articles of Incorporation is what creates your corporation. The document includes essential information such as your business name, address, registered agent, and the number of shares your corporation will issue. As of 2024, there is a filing fee of $50 when sending in your document.

Determine how the company should be run

Corporate bylaws are optional rules determining how owners should run their company. These bylaws include information about holding meetings, making decisions, and electing directors. Creating a list of bylaws to adopt will help the company run smoothly.

Issue stock to shareholders

Shareholders are the owners of a C corporation. While they all get a say in how they should run the company, their power over it is determined by the share of stock they receive. Distributing this stock to shareholders is essential in creating an ownership hierarchy.

Get your Employer Identification Number (EIN)

Your company’s assigned Employer Identification Number allows you to open business bank accounts, hire new employees, and file taxes. These functions are necessary for a business to grow and thrive.

The IRS can provide this number to you for free.

Ready to get started? You can apply for your EIN quickly and securely on the IRS website.

Get necessary permits and business licenses

The state of Colorado does not require businesses to get any licenses. However, individual cities and counties may have different rules. Many of these areas need all companies to have a generic business license. 

There may be more licensing requirements for more specialized industries. For example, a fishing or hunting company may require a fishing or hunting license. If you have any questions about the licenses you need to run your business, ask your local government for specific requirements and prices.

• More credibility: Creating a C corporation can make your business look more professional and trustworthy. Businesses legally recognized by the state are more likely to gain investors and customers due to their trustworthiness.
• Tax deductions: A C corporation can deduct multiple expenses from their taxes. These deductions include salaries, marketing costs, employee benefits, rent, and other business-related essential expenditures.

• Unlimited shareholders: C corporations can have as many shareholders as they want. The higher the number of shareholders, the more money they invest in the company and the less risk individual shareholders face. 
• Limited liability protection: Personal assets are protected if your corporation faces legal trouble or debts. For example, if someone sues your corporation, your money and belongings are usually safe.