Moving Your LLC or Corporation to Colorado

Introduction – Why Colorado?

Colorado is a centrally located state that shares its borders with Wyoming, Nebraska, and Kansas among others. The real gross domestic product (GDP) of Colorado is $385.83 billion and it is home to over 600,000 small businesses as well as large enterprises. The state is also home to several top facilities run by the federal government including NORAD (North American Aerospace Defense Command). If you have been thinking of moving your business to Colorado then it would be a good decision as the state takes pride in its robust transportation infrastructure and logistics chain. Today, there is a rise in entity domestication in Colorado as it is home to innovation and growth oriented industries with focus on STEM-based advanced industries as well. Small business incentive programs as well as easy access to loans and grants make the state an obvious choice for entrepreneurs. Let us look at some of the top benefits this state offers.

Best workforce

Whether you are moving your business to Colorado or simply starting a new business, one of the foremost requirements of every company is the need for skilled employees. The type of employees your business requires will depend on the services or products being offered, the niche or the industry requirements. This is where the highly dedicated and talented workforce of Colorado comes into the picture. The state boasts of a high concentration of talent in knowledge-based areas like computer or IT, engineering, and life sciences. The state also has a strong STEM (Science, Technology, Engineering and Mathematics) workforce. There are top universities and educational institutions in the state like the University of Colorado Boulder, Colorado School of Mines, Colorado Mesa University, and Fort Lewis College among others.

Diverse and growing economy

One of the top benefits of moving a corporation to Colorado or an LLC is the diverse and growing economy. There are several factors that play a crucial role in the ever growing economy of the state but the most important of them are the diverse industries. There are 14 major industry sectors and these include 7 STEM-driven advanced industry sectors. The state has been ranked number 6 in terms of concentration of creative class occupations, number 4 for concentration of STEM Workers, and number 2 for Technology & Science (Milken Institute, 2020). If you are thinking of relocating a business to Colorado then you should check out the top industries, their markets, growth, innovation, and future. Some of the growing industries include advanced manufacturing sector, transportation and logistics industry, tourism & outdoor recreation (4 percent of the state’s GDP), and Technology & information (7.2% of the state’s GDP) among others.

Global market access

If you plan on moving your business to Colorado and if your business entails selling, manufacturing and distribution to international markets then yes, the state does have a robust system in place to support your goals. The transportation and logistics industry in Colorado, enabled by multimodal transportation elements are publicly and privately owned and operated. North America’s longest commercial runway located at the Denver international airport connects to more than 150 domestic as well as international destinations, which includes Asia, Europe, Mexico, Central America, and Canada. Colorado enjoys a central location with easy access to global markets while ensuring low transportation costs.

Collaborative and stable ecosystem

One of the advantages of moving an LLC to Colorado or any other entity is the collaborative and stable ecosystem. This ecosystem is made up of individuals, organizations, and professionals who share common goals and interests towards creating a shared value for their clients, the industry, and the communities at large. A stable collaborative ecosystem helps in creating a versatile and efficient workforce and helps entrepreneurs to scale faster. Colorado is also focusing on strengthening the existing entrepreneurial ecosystems while attracting and retaining growth oriented entrepreneurship.

Steps to move your corporation to Colorado

If you are thinking of relocating a business to Colorado then there are several benefits that the state offers, which can help you in achieving your short-term and long-term goals. You can leverage state sponsored research and development programs and also have access to various incentive programs initiated by government agencies and private organizations. You may have several questions like, does Colorado allow domestication? as well as the various processes applicable for moving a business to this state. Let us take a look at the various options in detail.

Register as a Foreign Corporation

The first option for moving your business to Colorado is to register it as a foreign entity. This option is favorable for those business owners who want to operate their corporation in their home state (state of incorporation) as well as Colorado. There is a process for moving a corporation to Colorado and is known as foreign qualification. The process is governed by 2022 Colorado Code, Title 7 – Corporations and Associations, Article 90 – Colorado Corporations and Associations Act, Part 8 – Foreign Entities. The process for foreign qualification is as follows:

• Designate a registered agent in Colorado for handling service of process pursuant to CO Code § 7-105-101 (2022)
• If your existing true name is not available then you will be required to register a trade name pursuant to CO Code § 7-71-103 (2022)
• File the Foreign Entity Authority Statement pursuant to the provisions of CO Code § 7-90-803 (2022) along with a fee of $100.

Do you want to start a foreign corporation in Colorado?

Convert a Foreign Corporation to Colorado entity

There are two types of conversion possible in Colorado and they are:

• Domestic entity to domestic entity
• Foreign entity to domestic entity

• You need to identify a true name or a trade name if the true name is not available. Conduct a name availability search and if the name is available then reserve it pursuant to §7-90-301, et seq. and §7-90-602 of the Colorado Revised Statutes (C.R.S.). There is a fee of $25.
• You need to hire and maintain a registered agent in the state for service of process
• You need to file the Statement of Conversion pursuant to CO Rev Stat § 7-90-201.7 (2018). There is a fee of $50

Want to domesticate your company in Colorado?

Dissolve home Corporation and establish a new Corporation in Colorado

The third and final option for relocating a business to Colorado is through dissolving the entity in your home state and registering a new entity as a domestic corporation in Colorado. You will be required to follow the laws and process of dissolution in your original state of incorporation. The process of dissolution will also vary from one state to another and may involve voluntary, judicial, or administrative dissolution. IncParadise, one of the most reputable registered agents in the USA offers dissolution services in all the states.

Dissolution in Home State

The process of moving a corporation to Colorado through dissolution of an entity in the home state will involve:

• You will need to file Certificate of Dissolution or Article of Dissolution as mandated by your home state
• You will need to notify the Internal Revenue Service (IRS) of dissolution
• You will need to close all accounts, credit lines, and cancel business licenses

Domestic Incorporation in Colorado

The incorporation of new entity or entity domestication in Colorado involves:

• Appointing a registered agent in Colorado for service of process
• Identify and reserve a business name using the Statement of Reservation of Name
• File Articles of Incorporation with the Colorado Secretary of State
• Prepare bylaws for your corporation
• Apply for business licenses and permits

Incorporate in Colorado with ease!

Steps to Move an LLC to Colorado

If you want to transfer an LLC to Colorado then you will be able to enjoy many benefits right from central location to robust transportation infrastructure and a business friendly environment. There are different processes by which relocating a business to Colorado becomes easier. Let’s study these processes in detail.

Register as a foreign LLC

If you are thinking of relocating a business to Colorado, and if it is a limited liability company, then the first option would be to register the LLC as a foreign entity. This process is also known as foreign qualification. This process to transfer an LLC to Colorado will be governed by 2022 Colorado Code, Title 7 – Corporations and Associations, Article 80 – Limited Liability Companies,
Part 9 – Foreign Limited Liability Companies. The process encompasses:

• You will need to conduct a true name search. If the true name is unavailable then conduct and register a DBA or trade name.
• You will need to hire and maintain a registered agent in Colorado for handling service of process pursuant to CO Code § 7-80-902 (2022)
• You will need to file the Statement of Foreign Entity Authority pursuant to CO Code § 7-80-901 (2022) along with a fee of $100
• You will also be required to apply for relevant business licenses and permits in the state.

Apply for LLC foreign qualification in Colorado

Convert a Foreign LLC to Colorado entity

One of the important processes for relocating a business to Colorado is to undergo entity conversion. Since your LLC is based outside Colorado or operational in another state; you can opt for converting foreign entity to a domestic entity. This process is also known as entity domestication in Colorado. The process involves the following:

• You need to identify a true name or a trade name if the true name is not available. Conduct a name availability search and if the name is available then reserve it. There is a fee of $25.
• You need to hire and maintain a registered agent in the state for service of process
• You need to file the Statement of Conversion filed pursuant to § 7-90-201.7 (3) of the Colorado Revised Statutes (C.R.S.). There is a fee of $50
• You will also need to file Articles of Organization for moving LLC to Colorado. This has to be filed pursuant to § 7-80-203 and § 7-80-204 of the Colorado Revised Statutes (C.R.S.)

Domesticate your foreign LLC in Colorado

Dissolve home LLC and form a new LLC in Colorado

One of the final ways by which moving your business to Colorado is possible is through dissolution of the entity in the home state and forming a new domestic entity in Colorado. A limited-liability company can be dissolved voluntarily or through judicial, or administrative dissolution. IncParadise, one of the most reputable registered agents in the USA offers dissolution services in all the states.

Dissolution in Home State

The process to transfer an LLC to Colorado through dissolution involves:

• Depending on the state, you will need to file a Certificate of Dissolution or Articles of Dissolution
• You may also be required to submit a certificate of cancellation
• You will need to inform the Internal Revenue Service (IRS) and obtain necessary tax clearances
• Clear all your pending claims towards customers, vendors etc
• Surrender your business licenses and permits

New LLC Formation in Colorado

The above process will be followed by domestic LLC formation in Colorado. This is essential for moving your business to Colorado.

• Identify and reserve a business name using the Statement of Reservation of Name pursuant to §7-90-301, et seq. and §7-90-602 of the Colorado Revised Statutes (C.R.S.).
• Choose a colorado LLC registered agent pursuant to CO Code § 7-80-301 (2022).
• File Article of Organization with Colorado Secretary of State pursuant to CO Code § 7-80-204 (2022) along with a fee of $50
• Prepare an LLC operating agreement
• Open a business bank account
• Apply for and obtain necessary business licenses and permits in the state

Register your LLC in Colorado Today!

Move Your Business to Colorado with IncParadise

If you are wondering if Colorado allows domestication then the answer is yes. You can now move your business to this state following different processes including foreign qualification and entity conversion. We at IncParadise, one of the top registered agent services in Colorado can provide you with information pertaining to relocating a business to Colorado. We can also help you by facilitating paperwork necessary for dissolution in your home state and help you form a new business in Colorado.