How to Form an S Corp in Colorado
When forming a new business, one possible structure is the S Corporation. An S Corporation is not its own legal structure, but rather a form of Corporation. An S Corp, as it is commonly known, provides its owners with the same limited liability as a regular Corporation. However, the S Corp passes all gains and losses on to shareholders, thus avoiding the double taxation of traditional C Corporations.
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Instructions
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1
Search the business names database at the link below to see if your desired business name is already in use. Colorado law prohibits the use of "similar" names if such similarity may cause confusion.
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2
Go to the Colorado Secretary of State's document filing website. (Note: new articles of incorporation must be filed electronically.) Visit the link below and choose "Profit Corporation" under "Form a new..."
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3
Input the S Corporation's name in the box. The name should include any designator like, "Inc." as part of the name entered. Clicking the Search button performs an "exact match" search of the business names database. However, similar names can be forbidden under some circumstances, which is why it was necessary to search manually in Step 1.
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Complete the application, including the names and contact information of the entity as well as the registrant, and the number of shares the S Corp will issue. Click "Submit."
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Review the information on the confirmation page. If correct, choose the method to pay for the $50 fee and enter the relevant information. Print a copy of this screen for your records.
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Tips & Warnings
Because an S Corp is a special tax status of a regular corporation, additional documentation must be filed with the IRS. Form 2553 is required to be filed within 2 months and 15 days of the incorporation date.
Because an S Corp is not a separate entity from a regular corporation, there is not a separate form for S Corps. So, while the form allows for the entry of the number of classes of shares, remember that according to federal law, an S Corp may have only one class of shares.
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