In August 2016, Denver was listed as #4 in the top 20 metro areas to start a business in America by CNBC. A new flock of millennials with spending power in our state, low unemployment rate, high average salaries and a well-educated workforce all lead to an economy that is ripe for supporting new businesses.
Starting a new business is more complex than just creating a business plan and leasing a physical space. If you want to protect yourself in the process it is advisable to set up a legal business structure that meets your goals, sets liability limitations and saves on taxes.
Setting up your legal structure is also required to register the trade name for your business. You can do an online search of business names in Colorado to find out if the name you are considering is already being used in our state.
Business Structure Options
- Corporations: typically a larger company with many employees that is owned by shareholders; there is no personal liability but there may be tax ramifications; regular meetings and record-keeping are mandatory
- Partnerships: two or more people who own and run a business; partners are liable for business debts from all partners but there is no double taxation
- Limited liability companies (LLC): a flexible legal entity that combines features of both corporations and partnerships; less record-keeping is required and profit sharing restrictions are reduced; includes some personal liability protection; self-employment taxes are enforced;
- Cooperatives: a group of members form a strategy to meet a need for the benefit of everyone using the service
- Sole Proprietorship: one person owns the business and is fully responsible for all assets, liabilities and management
Business structure options can be complicated; it’s important to make the right decision for your business goals, leadership structure, budget, taxation implications and more. The Denver business planning lawyers at The Brown Law Firm LLC can help you navigate the process and understand how each type of structure will not only affect your bottom line but also affect you as an individual.
Contact The Brown Law Firm LLC at (303) 339-3750 or send us a message online to start discussing the best options to bring your unique ideas to life. Our experienced team can also help you prepare the proper paperwork to get your business established and make your dream a reality in the Denver metro area.