Moving to Colorado? If you, a friend, or a family member have recently moved to the Centennial State, and you’re wondering what to do with your LLC, look no further. I have your answer! You can do one of three things: you can register it as a foreign LLC; dissolve it and start anew; or create a new LLC and merge it with the old one. Keep It As A Foreign LLC A foreign LLC is one that’s registered in…
Frequently, I’m asked, “What do you put in an operating agreement?” And like any good lawyer, I respond “Depends.” I’m not avoiding the question. Rather what’s goes in to an operating agreement depends on many factors. For example, membership size and funding. The typical operating agreement for a single member LLC is about 10 pages. The average operating agreement I draft for a two or more member LLC is usually about 50 pages. That’s a big difference in content between…
I often come across small business owners who’ve made the S-Corp election for their LLC. Usually, after learning about their business, I’m at odds why they choose to do this. I understand by making the election an owner can save on self-employment taxes through a reasonable salary and dividend payments. I believe however, in the majority of instances, the tax savings to the business owners, do not outweigh the legal and tax advantages lost to the LLC on making the…
As a business owner part of your business plan should be planning for when your not around. A succession plan for your business should be on your bucket list. Make a plan and write it down. Whether you’re a solopreneur, a member of a LLC, or shareholder of a closely held corporation; I recommend before creating an estate plan for yourself before you create a succession plan for your business. If you’re business is a single member LLC, or a…
Colorado requires all businesses registered with the secretary of state to have a registered agent. The registered agent is a person or company designated to be the official point of contact between the government, the courts, as well as taxing authorities and your business. The appointment of your registered agent occurs during the filing of your articles with the secretary of state. The responsibility of the registered agent is to accept legal notices and tax documents for the business; then…