How to Set Up a Real Estate LLC in Colorado

LLCs are the most popular structure for real estate businesses in Colorado. That's because starting and running a limited liability company (LLC) is simple and offers important benefits.

LLCs can protect your personal assets (car, house, savings) if your real estate business is sued. LLCs also offer credibility and options to save on taxes.

Recommended: Use Northwest ($29 + State Fees) to form your real estate LLC for you.

Starting a Real Estate LLC in Colorado Is Easy

You can set up a real estate LLC in Colorado by registering the Articles of Organization with the CO Secretary of State. The cost to get a real estate LLC in Colorado is $50.

Important: If you already own property and you have a mortgage, it’s important to understand your lender’s requirements before transferring title to a new LLC.

Follow our How to Set Up a Real Estate LLC in Colorado guide below to get started.

For information on how to form a real estate LLC in another state, read our How to Start a Real Estate LLC guide. Also, check out our other real estate investing guides.

Steps to start an L L C in Colorado

Step 1: Name Your Real Estate LLC

Choosing a company name is the first step in forming a real estate LLC. You’ll need to give your business a unique name that meets Colorado naming requirements.

You’ll officially register your name when you file your Articles of Organization.

  1. Choose a name that meets Colorado naming requirements:
    1. Your name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.)
    2. Your name can’t include words that suggest your LLC is affiliated with a government agency (FBI, Treasury, State Department, etc.)
    3. Read the full list of Colorado naming guidelines for more information
  2. Check if the name is available in Colorado. Make sure the business name you want isn’t already taken by doing an LLC name search online. To learn more about searching for a Colorado LLC name, read our full guide.
  3. Use naming tools like our LLC Name Generator and How to Name a Business guide if you need help brainstorming real estate business names.
  4. Check to see if your business name is available as a web domain. You may want to buy the URL to prevent others from using it.

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After you get your business name, your next step is getting a unique logo. Get your unique logo using our Free Logo Generator.

Step 2: Choose an LLC Registered Agent

When you file your Articles of Organization, you'll need to list a registered agent.

A registered agent'ss job is to accept legal documents like service of process and tax notices for your LLC.

Your real estate LLC’s registered agent can be a person or a registered agent service. You can be your own registered agent, but many business owners choose to use a registered agent service.

Things to think about before choosing a registered agent include:

  • Availability: You’ll need to be available during normal business hours (i.e., 9 a.m.–5 p.m. Monday through Friday) at the address you provide
  • Public Records: If you run your business from home, you’ll have to make your personal address public
  • Privacy: You could be served with a lawsuit in front of your family or coworkers

To learn more about Colorado registered agents, read our full guide.

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Many of the best LLC services offer a free year of registered agent service when you hire them to form an LLC.

Step 3: File Your LLC's Articles of Organization

To register your Colorado LLC, you'll need to file Articles of Organization with the Colorado Secretary of State. This can be done online. Note that Colorado has reduced formation filing fees to $1 from July 1, 2022, to June 30, 2023.

Now is a good time to decide whether your LLC will be member-managed vs. manager-managed.

Recommended: For help with completing the form, visit our Colorado Articles of Organization guide.

File the Colorado Articles of Organization

File Online With the Colorado Secretary of State

File Online

Filing Cost: $50, payable to the Secretary of State. (Nonrefundable)

Step 4: Create a Real Estate LLC Operating Agreement

An LLC operating agreement is a legal document that outlines the ownership and member duties of your real estate LLC.

Even single-member LLCs can benefit from having an operating agreement.

Your operating agreement should outline the following:

  • Each member’s responsibilities
  • How new members will be admitted
  • How existing members may transfer or terminate their membership
  • How profits and dividends will be distributed
  • How and when capital calls will be made
  • Manager indemnification regarding mistakes made in good faith
  • Tax and reporting timing
  • Interest transfer and first right of refusal to members if property is to be sold

You can add provisions to your real estate LLC operating agreement, as long as they don't conflict with Colorado law.

Recommended: Download a template or create a custom free operating agreement using our tool.

Step 5: Get an EIN

An Employer Identification Number (EIN) is a number that’s used by the US Internal Revenue Service (IRS) to identify and tax businesses. It’s basically a Social Security number for a business.

EINs are free when you apply directly with the IRS. Visit our What Is an EIN guide for instructions on getting your free EIN.

Steps After Forming a Real Estate LLC

After forming your real estate LLC, you’ll need to do the following:

  • Open a Business Bank Account. A business bank account legally separates personal finances from business finances. This separation is required to maintain your LLC's corporate veil (i.e., your limited liability protection).
  • Transfer Existing Property(s) to Your New LLC. If you already own property that you’ll be transferring to your new LLC, you’ll need to record a deed that reflects this change. This can be done with the help of a title company or on your own. We recommend contacting a title company or your county clerk to get started.
  • Update Your Lease. If you are transferring existing rental property to a new LLC, you’ll need to update your residential lease agreement to reflect new ownership.
  • File Your Colorado LLC Periodic Report. File online with the Colorado Secretary of State each year by the end of the month of initial registration. Reports do not need to be filed in the same year that an LLC is formed. For more details, check out our Colorado LLC Periodic Report guide.
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