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Register your business with your state and local authorities

You got a good business name and you found a great domain name by now. Now comes the first step to running an official business. You will need to register your business. There are several legal forms of doing business available. You could go with a "DBA - Doing business as", a "LLC - Limited Liability Company", or go with forming a corporation. Our personal favorite is the LLC and that is what we are recommending to you. Here are our reasons:

Limited Liability Company (LLC)

A Limited Liability Company is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a sole proprietorship and partnership. The actual formation is a little more complex and more formal than that of a sole proprietorship and/or partnership. A LLC does have members but can also be formed by just one person (=1 member). Basically - a LLC receives the corporation's protection from personal liability for business debts and the tax structure of partnerships and sole proprietorships.

Advantages of a Limited Liability Company (LLC)

- Members have limited liability
- Actual taxation might be more benfitial for the members
- Business form looks more professional than a sole proprietorship in many cases
- A LLC only needs one member

Disadvantages of a Limited Liability Company (LLC)

- A LLC cannot seek funding by offering shares to shareholders
- The liability protection can be removed by a judge if it is obvious that the members did not run the business as a LLC but as a partnership / sole proprietorship
- Less laws that govern the LLC. This could be a problem in complicated business situations

Fees - State of Colorado

http://www.sos.state.co.us/pubs/info_center/fees7_01_04.htm

Online Business Registration with the State of Colorado

http://www.sos.state.co.us/pubs/business/update09_15_04.htm

Cost associated with this step: $0.99 (online)
(this price could change - please check the fee information with the link provided below)

Continue to Step 4