From brain-storming to strategic planning, starting a business requires several steps. Whether you are planning a one-person firm or a company with several employees, an important process that must be initiated early on is your business formation strategy.

Forms of business entity for consideration in Colorado:

• Sole Proprietorship: This is an individual engaged in a business activity.
• Partnership: Defined as two or more persons as co-owners of a business for profit. Partnership formation options include General Partnership (GP), Limited Partnership (LP), Limited Liability Partnership (LLP) and  Limited Liability Limited Partnership (LLLP)
• Corporation: C Corporation (C Corp) and S Corporation (S Corp) are the two choices.
• Limited Liability Company (LLC): A hybrid entity combining aspects of a corporation and a partnership. An LLC in Colorado may have a single member.

Every business is unique, and each of these business formation options offers different benefits and structures. Considerations to keep in mind when starting a business include tax implications, protection from personal liability and the long term management structure. Consider talking to an attorney experienced in Colorado business law who truly understands good business planning and practice. Understanding the specific Colorado rules and regulations as it applies to your business may save a myriad of headaches in the long run, and eliminate a few extra steps so you can concentrate on your vision: building your business.

Make every business move a step forward.

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