On this page, you’ll learn about the following:
Colorado Registered Agent Requirements
There are certain requirements to fill the role of a Colorado registered agent:
- The nominee must be more than 18 years old.
- The individual must have a legal, physical address in the state where the LLC will operate.
- The individual must be physically present during normal working hours.
How to Choose a Registered Agent?
When you file your Certification of Formation in Colorado, you must nominate a registered agent. You can either appoint an in-house registered agent (yourself or any LLC member) or outsource a Colorado registered agent service.
You can elect your registered agent online through the Colorado Secretary of State website.
Hiring an Inhouse Registered Agent
When hiring an in-house registered agent, make sure the individual is over 18 of age and lives in Colorado.
Can I be my own registered agent?
Yes, you can be your own registered agent. So long as you meet the basic requirements for a registered agent, then you can take on this role for your LLC.
Outsourcing a Registered Agent
You may, instead, get professional registered agent services. Doing so ensures that you will have the best individual to represent your business. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
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Note that availing of the services of professional registered agents would be your best option since you are guaranteed that whoever is handling your legal affairs knows their stuff well. You will enjoy peace of mind and focus only on running your business, as the ‘professionals’ take care of all legal matters.
What to Consider when Choosing a Registered Agent
Here are some factors to consider when choosing a registered agent.
- Service Fee: Since most states require formal businesses to have registered agents, selecting the best-registered agent is critical. Hiring a registered agent service typically costs between $50 and $300 annually. When you consider how much time it will save you, this is a small price to pay.
- Tenure in Business of Registered Agent: You want the registered agent to have established and time-tested procedures for handling documents that are received.
- State Jurisdiction Limitation: If your company expands to another state, you should use the same registered agent in all states to reduce the administrative burden of dealing with multiple registered agent service providers.
- Offer Monitoring and Follow-up Services: You want to receive up-to-date information and alerts from your registered agent as soon as possible so that you are aware of the various statutes, rules, and regulations that apply to your company.
Colorado Business Laws for Registered Agents to Note
If you are interested in starting a business in Colorado, then you must know about the business laws the state has. There are some basic business laws that exist in Colorado. Below is the list of business laws one has to consider while forming a Colorado LLC.
- Deceptive Trade Practice Law: Unlike California, Colorado has adopted the deceptive trade practice law in the state. Under this law, there are some activities that are considered to be trade malpractice. The following activities are punishable under the Colorado Deceptive Trade Practice Law,
- Knowingly disregard products from other businesses
- Knowingly sell damaged or old products faking it to be a new one
- Knowingly not detecting fire or water damaged products
- Knowingly represent false certificate of quality for the goods or services
- Appointing sale persons falsely just to sell products to them
The penalty for attempting any of the above-mentioned activities is the cost of the total damage or 3 times the total damage or $500 whichever is more.
- Antitrust Law: Colorado Antitrust Act has started in the year 1992. Under this act, there are some points that are punishable. The state attorney general can bring the claim. The time span is 6years. Following are the situations when an Antitrust claim can be raised,
- Mergers and acquisitions to form a monopoly and reduce price competition
- Rigging bid to influence the fixed market price
- Any attempt to monopolize the market
The punishment can be up to 6 years of imprisonment for any criminal offense and up to 4 years jail for a civil offense.
- Interest Rate Law: In Colorado, like every other state, there is one threshold of interest rate under this law. If no certain interest rate is mentioned in the contract, then any consumer loan will have an 8% of interest rate. For the non-consumer loans, the interest rate is 45% which is much higher among other states. However, crossing this threshold may end up being punished.
- No mention of interest rate > 8% by default
- Consumer loan interest rate > 8% to 12%
- Non-consumer loan interest rate > 45%
The penalty for violating the rules will be a class 6 felony and a fine from $1000 to $100,000.
- Civil Statute of Limitation: In Colorado, the time span for bringing a civil case is 1 to 3 years. For the cases related to the collection of debts and rents, the time span is 6 years. In case of personal injury or involving any motor vehicle one additional year is available that sums up to 3 years total.
How to Remove a Registered Agent for LLC in Colorado
The law in Colorado requires that an LLC hire a registered agent. This person will receive all legal documents on behalf of the company. However, the registered agent needs to be updated whenever the information about the company changes. Often, this will require a Statement of Change Changing the Registered Estate Information form. It is vital to follow these procedures carefully to avoid getting into trouble. The state of Colorado will suspend the operations of the LLC until it has resolved the matter.
In Colorado, the Secretary of State requires each LLC to have a registered agent. You can be an individual member of your LLC and serve as its agent. However, to serve as an agent for a foreign entity in Colorado, the registered agent must be a qualified foreign entity and have a physical address in the state. Alternatively, you can hire a registered-agent service to do the work for you. This will free up your time and protect your company from fines and penalties, while helping you stay compliant and protected.
Once you have a registered agent, you need to file a Statement of Change Changing the Registered Agent Information and a Periodic Report in order to remove them. You must file these documents online to avoid fees and penalties. You must also meet the annual filing deadlines. This will ensure that you have all the information you need to keep your LLC compliant. If you want to remove a registered agent from an LLC in Colorado, there are some things you need to do.
All corporations and limited liability companies doing business in Colorado are required by state law to appoint a Colorado registered agent. Colorado registered agents provide a reliable way for the Secretary of State and state courts to contact a corporation or LLC.
A registered agent is simply a person or entity appointed to accept service of process and official mail on your company’s behalf who lives in the state of service and is over 18.
If you intend to be your own registered agent, you may be forced to use your home address (especially if you run a home-based or web-based business), making the address public.