How to Form an S Corp in Colorado

Choose a name for your S corporation

Choosing a name for your S corporation can be crucial to its success. A good name will inform potential customers of your business or service while being memorable. Check the Colorado Corporation Commission’s business name database to ensure the name is not already in use. 

As with all corporations, your business must include a specific entity name to be valid. Names like “Corporation,” “Incorporated,” or an abbreviation like “Inc.” or “Corp.” are accepted in Colorado.

You can reserve your name in Colorado for 120 days. As of 2024, this reservation costs a small fee of $25.

Find your registered agent

Registered agents are necessary for every small business operating in Colorado. This individual will receive your legal paperwork on behalf of your S corporation. This agent can be yourself, a close friend, or a hired professional.

Because your agent will be in charge of critical legal documents, ensure your chosen agent is reliable and trustworthy. Most businesses hire a professional to handle this paperwork to prevent future problems.

Create corporate bylaws

Corporate bylaws outline your business’s rules and operation guidelines. Colorado does not require creating or adopting these laws for your business to be formed. 

If you make bylaws, you must meet with the board members to adopt them and cover other essential formation processes. Here, you will also issue stock to shareholders and determine how much power they have over the company. 

File the Articles of Incorporation

The Articles of Incorporation are the first important document that all for-profit business owners must file. This document will provide government information about your business and your chosen agent. As of 2024, the Articles of Incorporation filing fee is $50.

Get an Employer Identification Number (EIN)

Your S corporation needs an Employer Identification Number (EIN) from the IRS. EINs allow S corps to pay taxes, hire employees, and complete other essential business activities.

Get your S corporation status with the IRS

The IRS requires that all businesses file IRS Form 2553 to be considered for S corp taxation. You will need basic information about your company and shareholder approval to complete this form. All S corps should file form 2553 within two months and 15 days of forming your corporation or at the beginning of the tax year.

Figure out what business licenses and permits you need

In Colorado, the business licenses you need depend on your business type, location, and industry. Colorado does not require a general business license for all businesses, though the local governments will likely require it.
For more information on required licensing, visit Colorado’s Department of Regulatory Agencies website.

• More professional appearance: Incorporated businesses appear more professional to customers and investors. This more credible appearance increases the likelihood that people will trust and work with your company.
• Liability protection: S corp shareholders’ assets are protected if the business faces legal trouble or debts.

• Continuous existence: An S corp can continue operating or change leadership, even if the original owner is no longer part of the business.
• Pass-through taxation: S corporations are not required to pay federal income taxes. Any profits gained pass through to shareholders and are reported on their tax returns.