Incorporate in Colorado
Colorado Limited Liability Company may not fit business needs of some clients. For example, when a person does not want to be taxed directly on all business income and prefer to pay personal tax on his dividends only.
Our company offers in such cases incorporation of corporations in Colorado. Procedure is simple and straight forward and we are able to incorporate Colorado corporation in one business day.
Information about Colorado Corporation
Corporate name must end in one of the following: “Corporation”, “Incorporated”, “Company,” or “Limited,” or the abbreviation “Corp.,” “Inc.,” “Co.,” or “Ltd.,”. A corporate name must be distinguishable from existing corporate names in Colorado.
Registered office address must be located in Colorado. Our incorporation fee includes a Colorado registered office address and registered agent for the first year.
Principal office address (business address) of the Colorado corporation may be in any country.
A minimum of one shareholder is required. Residents of any country, individuals and legal entities may be a shareholder.
A resident of any country may be appointed as Director. A minimum of one director is required. Corporate directors and officers are not permitted.
Officers must be individuals, and may be a resident of any country. Positions of president, secretary and treasure are mandatory for each corporation.
One individual may be appointed as director, president, secretary and treasurer.
Federal income tax rate is 21%.
Federal corporate tax returns (Form 1120) for most types of corporations are due by the 15th day of the third month following the tax year (March 15 for calendar year).
Colorado state income tax rate is 4.63% and must pay its federal taxable income allocated and apportioned to Colorado. Colorado corporate income tax returns are due in the case of a calendar year taxpayer, on or before April 15 of the following year. In the case of a fiscal year taxpayer, the return is due on or before the 15th day of the fourth month following the close of the fiscal year.
A corporation is able to take tax deductions on business expenses (auto, office, etc.). A Corporation can also provide tax free benefits for its employees, such as dental, medical, etc.
Corporations must file annual periodic reports to the state. The due date of this report is determined by when you initially formed the company. If the corporation was formed in July, the report will be due every July. Our company will send you reminders and have this report filed for you as it will be included in our annual renewal fee.
A corporation is required to maintain appropriate accounting records and file annual income tax returns with US Internal Revenue Services.
All non-residents who own a US corporation (min 25% foreign shareholders) must file a 5472 US tax return with the IRS for disclosure purposes even if you do not owe tax in the US.
The Colorado Secretary of State does not maintain information about directors, officers and shareholders. Their names are not required to be listed in the articles of incorporation, and in the annual periodic report filed with the Secretary of State.
Incorporators (names and addresses) and the corporation’s principal office address are listed in the articles of incorporation.
The following documents must be kept in the corporation’s principal office (business office):
- Minutes of all meetings of shareholders and board of directors
- A record of shareholders (names, addresses, shares information)
- The articles of incorporation and all amendments
- Bylaws and all amendments
- Directors resolutions
- All written communications to shareholders
- Financial statements
- A list of the names and business addresses of current directors and officers
- Corporate annual franchise tax reports
There is no audit requirement for Colorado corporations.
Meeting is required, and could be held at the corporate principal office or any other place stated in accordance with the bylaws or a resolution of the board of directors. The failure to hold an annual meeting does not affect the validity of any corporate action and does not work a forfeiture or dissolution of the corporation.
Formation of a Colorado Corporation takes 1 business day. Preparation of all internal documents takes an additional 2 to 6 business days.