Denver Business Formation Lawyers

Whether you’re just beginning your entrepreneurial journey or have years of experience, starting your business begins with choosing an appropriate legal structure.

Located in Denver, Lantz Law Group serves companies of all types looking to do business in the U.S. We want to ensure your business’s ongoing success, and we can handle the planning and filing needs of your business and any necessary matters after formation.

Call 719-212-2022 today or contact us to learn more about how we can help.

Choosing the Right Entity

We have experience with many types of corporate entities, and our Denver business formation lawyers will walk you through all your options, which include:

Corporation

A corporation is a legal organization that is distinct from its owners. They are treated as individual persons under the law and can own property, enter into contracts, and be sued. Corporations are owned by shareholders, managed by an elected board of directors, and run by appointed officers. Shareholders have limited liability in corporations and are more protected from lawsuits. The corporation files a tax return and pays income tax on its profits.

In Colorado, corporations are formed by filing Articles of Incorporation with the Colorado Secretary of State.

Limited Liability Company (LLC)

In contrast, a limited liability company (LLC) is a legal entity that combines the benefits of corporate protections with the profit-sharing flexibility and simplicity of a partnership. LLCs have the added benefit of “flow-through” taxation, where the profits and losses of the business pass through the personal tax returns of the owners, who are known as members rather than shareholders. This avoids double taxation since the LLC doesn’t pay corporate income tax on its profits — only the members are taxed on their personal returns.

When starting an LLC, you’ll choose someone, known as a registered agent, to receive correspondence and legal papers on behalf of your business. You’ll also have to choose a unique name for your business including the words “limited liability company” or an abbreviation such as limited or ltd., but this doesn’t necessarily have to be the same name you use to market your business to customers.

What Else Do You Need to Form a Corporation in Colorado?

To form a corporation and file Articles of Incorporation, your business formation lawyer will need to know:

• Your company’s name and address
• The name and address of your registered agent
• The name and address of the person wishing to form the corporation
• Names and addresses of your initial shareholders, board of directors, and officers
• The amount of capital the initial shareholder is investing (usually to cover filing fees and initial business setup needs such as renting an office space)
• The number of shares to be issued to the initial shareholders

Other Types of Business Entities

While corporations and LLCs are some of the most common business structures (especially for those in foreign countries establishing U.S. subsidiaries), other types of entities could be suitable for your business. Examples include:

• General partnerships — In this structure, two or more partners agree to manage and operate a business together, sharing profits and losses. General partnerships involve partners who operate a business together but have no other business structure. They share equal responsibility and personal liability for the businesses’ debts and obligations.
• Limited partnerships — In a limited partnership, general partners run the business and share liability, while limited partners are co-owners or investors who contribute capital and have limited liability for business debts. Limited partners are more protected from lawsuits and creditors than general partners.
• Proprietorships —A sole proprietorship is the simplest and cheapest way to start a business. One person owns and manages the business, but this structure creates significant financial exposure since the owner has unlimited personal liability.
• Cooperatives — Cooperatives are controlled by their owners who use the businesses’ services or products. Members of a co-op democratically manage decision-making and share profits.

With so many options to start your business, you might have questions about which structure will most benefit you. A business formation lawyer in Denver can explain the best choice for your business and represent you through the entire formation process.