We assist business clients and entrepreneurs with business formation by reviewing the goals and individual facts present in each situation and recommending the best entity. We take the time to explain the difference etween entity structures and discuss the advantages and disadvantages specific to their situation. We focus on the individual needs of our clients, emphasizing perrsonalized planning rather than standardized packages.
We apply a problem-prevention approach to business planning and business start-up issues. Our primary concern is to take every step necessary to assure that our clients understand proper business and corporate procedures, and to prevent legal problems from happening. Our firm provides the legal advice, counsel, and representation needed to start a legally and financially sound business, and helps clients plan for and successfully handle the challenges they will face down the road.
NEW BUSINESS CHECKLIST
We have the pleasure of assisting many entrepreneurs establishing new businesses. Whether our clients choose to establish a limited liability company or a corporation, there are many important legal aspects that fall outside of the scope of the basic formation process. Here, we would like to highlight some of the issues each new business should take into consideration.
Intellectual Property-
Make sure the company’s name is available
Search the Colorado Secretary of State database
Search the United States Patent and Trademark office for similar trademarks
Search an internet search engine to see if there are any companies using a similar name
Legal Formation
File the Articles of Incorporation/Organization with the Colorado Secretary of State
File the application for the Employer Identification/Federal Tax Identification Number
Purchase Shares or Membership Interest in the company
Hold the first meetings of the shareholders and directors or members and managers
Adopt bylaws or operating agreement
Elect directors and officers or managers
File a statement of trade name if the company will be operating under a name other than its official name
Determine whether your trade or profession is subject to specific regulatory requirements
Financial and Tax
Meet with an accountant to discuss the company’s operations and the tax implication of the entity form
Discuss whether the company should apply for “S” corporation status
File an application for Employer’s Withholding Tax Registration with the Colorado Department of Revenue (CR-0100) to open a wage withholding account with the Colorado Department of Revenue. The account number is the company’s Colorado taxpayer identification number and also establishes the company’s unemployment insurance account.
Create a business plan and budget, determine cash flow projections and working capital needs
Make sure you receive all of the federal, state and local tax information and forms.
Address applicable State & Local Sales and Use Tax issues- (See Permits and Licenses, below)
Open a company bank account.
Insurance
Discuss the company’s operations with an insurance advisor to determine what types of insurance are needed. (Liability, Fire and Premises, Auto, Glass, Business Interruption, Crime, Officer and Director liability, Products liability, etc.)
Determine whether your profession requires professional liability insurance
Determine whether the company is required to have worker’s compensation insurance