Colorado LLC Laws – Limited Liability Company Act Tips for Compliance
The Colorado Limited Liability Company Act has a wealth of information related to operating LLC’s. However, the following are only but a few of the basics that business owners should know.
- Without proper formation or compliance with Colorado LLC Laws, your personal assets can be exposed to creditors
- There is more to forming an LLC than simply registering with the Secretary of State.
Under LLC Colorado laws, A limited liability company may be formed for only any lawful business governed under Colorado business laws.
The unauthorized assumption of powers. All persons who assume to act as a limited liability company without authority to do so and without a good faith belief that they have such authority shall be jointly and severally liable for all debts and liabilities incurred. When you do not comply with the Act statutory requirements, you may be considered as having waived any personal protections that you have otherwise gained. This can mean being personally liable for business debts etc.
Does the Colorado Limited Liability Company Act Require an Operating Agreement?
The Colorado Limited Liability Company Act does not mandate that you have an operating agreement. However, having a properly-drafted operating agreement can go a long way in protecting your rights in the event of a business dispute. Your Colorado LLC operating agreement may contain provisions for the affairs of the limited liability company and the conduct of its business to the extent such provisions are consistent with Colorado law.
The LLC operating agreement governs the rights, duties, limitations, qualifications, and relations among the managers, the members, the members’ assignees and transferees, and the limited liability company. Having detailed information in the agreement avoids the risk of having the LLC Colorado laws to control the results of any disputes.
Under the Colorado LLC Act the operating agreement forms should not:
- Restrict rights of, or impose duties on, persons other than the members, their assignees and transferees, and the limited liability company without the consent of these individuals.
Articles of Organization Tips Under Colorado LLC Laws
To form a Colorado limited liability company, you must first file articles of organization with the Colorado Secretary of State. There is no exception to this rule.
A registered agent must be maintained. Each limited liability partnership or LLC shall appoint and continuously maintain in the state a registered agent for service of process. It is up to the business owner to make sure that the information is kept current and correct.
Under LLC Colorado laws if the LLC articles of organization vests in a manager or managers:
The articles of organization or the operating agreement of the limited liability company may apportion management responsibility or voting power among the several managers if there are two or more. See information about LLC vs Corporation.
The manager or managers, if they are natural persons under Colorado LLC laws, must be eighteen years of age or older but need not be residents of this state or members of the limited liability company unless the articles of organization or the operating agreement so require.
Speak to an Attorney & Get a Free Initial Consultation
For help with complying with the Colorado Limited Liability Company Act, forms or litigation, call our Denver CO limited liability company lawyers at 1-866-601-5518.
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