Are You Operating Your Delaware LLC From Colorado?
Clients from all over the world form Delaware LLCs in order to take advantage of Delaware’s corporate law structure, which is widely considered the strongest in the world.
The only requirement is that you maintain a Registered Agent in Delaware. We have helped thousands of companies by acting as a Registered Agent, for just $50, per year since 1981.
When operating a Delaware LLC in another state, such as Colorado, clients will often register their businesses as a foreign entity in that state. Each state has different requirements. Colorado, like most states, requires an application process and a state filing fee.
Unlike most states, however, it does not require a Certificate of Good Standing from Delaware. Colorado does require a Registered Agent in the state. We can act as your company's Registered Agent in Colorado for $99 per year. We can also assist with the application process to register your Delaware LLC as a foreign entity in Colorado.
Colorado does not have a publishing requirement unless specifically required by the county of your Registered Agent.
Why register in Colorado if my company was formed in Delaware?
The Foreign Qualification process is the way in which the state of Colorado grants you permission to operate with a Delaware LLC. The Foreign Qualification process enables a company to transact business in a jurisdiction other than where it was formed. By failing to comply with local compliance issues, you may be putting your company at risk.
After completing the Foreign Qualification process, you will receive a document from the Colorado Secretary of State called a Certificate of Authority. It states that Colorado grants your business the authority to operate in Colorado with a Delaware LLC. It is often a prerequisite for many business licenses in Colorado. This document is also required by banks before your company can open a bank account in Colorado.
Once registered in Colorado, you are responsible for the annual compliance fees. Colorado mandates a periodic report, which costs $10. You can sign up for Colorado's email reminder system once registered there.
If you have any additional questions about registering your Delaware LLC as a foreign entity in Colorado, or if you need assistance with the process, please contact Harvard Business Services, Inc. at 1-800-345-2677, Ext 6130 or email devin@delawareinc.com.
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.
More By Devin Scott
There is 1 comment left for Are You Operating Your Delaware LLC From Colorado?
Steven said: Tuesday, November 7, 2017Would corporations be required to pay income tax if registered outside Colorado owned by a person in Colorado and one in Canada - ecommerce, no physical location?
HBS Staff replied: Tuesday, November 7, 2017Income taxes are often paid in the jurisdiction in which the company is operating. For online businesses, clients typically pay income tax to the jurisdiction in which they are running this online business. Our clients typically work with an accountant for specifics on income taxes.