Starting an LLC is a big moment. You get to create your company and hopefully do the work you're passionate about. While starting an LLC is great, it's not always simple. There are many rules and laws you need to be aware of, which makes getting started easier said than done. One of the biggest issues with starting an LLC in Colorado is finding and working with a registered agent.
Registered agents are required by law in the state of Colorado. In fact, each state has unique LLC laws that pertain to registered agents. This is why you have to look at the information that's directly related to Colorado. This is because some states handle the rules differently. Moreover, states use different names for things. For example, Colorado's annual report is also known as a periodic report, which is different from other states.
The good news is that we're here to help with your registered agent needs. Read on to learn everything you need to know about Colorado registered agents.
What Is a Colorado Registered Agent?
A registered agent (also sometimes known as a resident agent) is required by
law in Colorado and handles all communication with the state on behalf of an LLC. While registered agents are required by law, they can also be useful for companies depending on who or what the registered agent is. This is why many LLCs choose to work with reputable registered agent services to avoid dealing with the responsibilities themselves.
That said, registered agents are responsible for more than one thing. Here is a list of some of the common things that registered agents do for companies:
- Handle Colorado periodic reports
- Manage the process for legal issues
- Communicate with the state
- Be available during normal business hours
Keep in mind, these are only a handful of tasks that registered agents are required by law to carry out in Colorado.
Can the Owner Be a Registered Agent?
In many states, Colorado included, the owner of an LLC can be the registered agent. This is a common registered agent path to take and one that isn't necessarily bad. In Colorado, family members, friends, and even employees can also be registered agents. According to state law, a person just needs to be over the age of 18 and must have a primary physical address (not a PO box) in the state.
That said, we always recommend working with a registered agent service to take the stress away from handling basic registered agent duties–we'll go into more detail on that later.
Why Do Businesses Need a Colorado Registered Agent?
If you want to own or operate an LLC in Colorado, you need a registered agent. First and foremost, registered agents are required by law in Colorado. This means you have to have one if you want to remain compliant. That said, registered agents also help LLCs with other needs–this is especially true if you work with reputable registered agent services.
Privacy
We'll start with privacy. One of the best things registered agent companies provide is privacy for business owners. This is because registered agents have to list their addresses and make it public knowledge. You can keep your information private by working with a registered agent service.
Registered agent companies can also handle the legal process. If someone decides to sue your company, the registered agent service can receive the serving documents and forward them to you discreetly. This prevents the courts from coming to your home or your business.
Flexibility
Flexibly is another reason an LLC benefits from registered agents. Registered agents have to be available every day during normal business hours. This makes it hard to focus on being a registered agent and running your company.
When you work with a registered agent service, you don't have to worry about being available all of the time. You can take vacations, enjoy time off, and spend more time with your family.
Compliance
Remaining compliant with the state of Colorado is difficult if you don't have a good registered agent. This is because registered agents are responsible for filing reports and ensuring the state gets information on time. When this doesn't happen, you can incur late fees, which is why working with a company that has guarantees is always a good idea.
Registered agent services can also manage your periodic report and help with tax filing. This makes it easy for you to remain compliant with the LLC's financials–another area where there are many penalties if companies aren't compliant.
Data Storage
Data storage is another thing registered agents can provide for your LLC. Data storage is important because it can keep your documents in one place, which is often on the cloud. This makes it easy to have documents ready when the state needs them.
What To Look For When Choosing a Colorado Registered Agent
Knowing why you need a registered agent in Colorado is a great start. This can help you begin the search for one. That said, it's hard to know where you should start. Finding a good registered agent is not easy, especially when there are tons of options around claiming to be the best.
For this reason, we're going to take you through some steps to help you narrow down your options.
Professional Service
First and foremost, you want to look for a professional service. While you can use yourself, an employee, friend, or family member, it's almost always best to go with a reputable registered agent service. This makes it easier to focus on your company instead of the registered agent's duties.
There are dozens of professional service options, each one with its own benefits. That said, as long as it's a company that has good reviews and a national presence, you can't go wrong.
Cost
Another factor to consider is the cost. There are several price ranges for registered agent services, and some are more or less expensive because of the features. For registered agent companies, you can expect to pay between $50 and $300 each year.
Still, if you don't want to pay an annual fee for a registered agent, you can always use a friend, yourself, or a family member.
National Reputation
When working with a registered agent service, you should consider the company's reputation. This is important for a few reasons. First and foremost, reviews can tell you if a company is honest about the services they offer. For reviews, you want to look for companies that maintain a 4+ star reputation on Google.
While reviews are important, a company should also be nationwide. A company available in all 50 states helps if you want to expand your business or move. Moreover, national companies are more successful and affordable than most local companies.
Data Management
A good registered agent service excels at data management. This includes storing data, moving data, and getting it to the state when needed. Being consistent with data storage is important for companies to remain compliant and have documents on hand when the state needs them.
You should also look for a registered agent service with multiple data management options and cloud storage. Moreover, some companies will store your data both on-hand and on the cloud.
Software Options
When looking for a registered agent service, you should also look at the software options. While software options tend to come with more expensive packages, if you have a lot of paperwork and need to communicate with the state often, choosing a package with great software options is a good idea.
Software is important because it can improve things like data storage, managing taxes, and sending data. This can help you avoid fees and remain compliant with the state.
While an LLC service doesn't need to include all of these services to be reputable, we recommend looking for registered agent services that check as many of the boxes as possible.
How Much Do Colorado Registered Agents Cost?
Registered agents can cost between $0 and $300 in Colorado. The amount a registered agent costs depends on the type that you're working with. In fact, in some cases, registered agents can be free if you appoint yourself or choose someone from within the company.
Still, even if you work with professional registered agent services, you don't have to worry about spending a lot of money. Most starter packages that include registered agents cost about $50 per year. The more expensive packages, ones closer to $300 per year, will come with additional features and benefits like premium data storage, software options, and even tax services.
What's the Best Registered Agent Service in Colorado?
If you want to find the best registered agent service in Colorado, look no further than
ZenBusiness. While there are dozens of reputable companies across the nation, none of them check all of the boxes like ZenBusiness does. ZenBusiness is the type of company that puts the customer first, which is evident in the customizable packages the company offers.
While the registered agent service comes with each package, there are different tiers. You can access premium data storage and transferring software, tax filing, reporting, and more. In fact, ZenBusiness can even help you start your LLC and make the first steps a breeze.
While ZenBusiness isn't as old as other companies like LegalZoom, ZenBusiness is a refreshing registered agent service. The company maintains great reviews, and the service is second-to-none.
For more on ZenBusiness and other registered agent services, read our
detailed guide.
