While we don't offer professional corporation formation in Colorado, we do offer LLC and incorporation services. Get started below.
A professional corporation (PC) is a business owned by a state-licensed worker, such as a dentist, lawyer, or hairdresser operating their own practice. Professional corporations are only available to those performing services that require them to be licensed by the state. If you have such a license, here’s how to form a Colorado professional corporation.
Colorado also allows you to file as a limited liability partnership (LLP) or professional limited liability corporation (PLLC). A PLLC also requires the primary owners to have a state license but has the structure of an LLC. A professional corporation is right for you if you wish to govern your company with a board of directors and issue stock.
If you’re starting this business with other investors or partners, decide who owns how much of the company. This is often represented by awarding each person a set number of shares of stock.
Decide who will be responsible for making business decisions. Some companies prefer leaving this up to the board of directors. Which decision is right for you depends on how involved you want to get in the day-to-day running of your company.
A good name lets potential customers know who you are and what you do. The Secretary of State has several guidelines governing the naming of Colorado professional corporations. Consult the chart on the Colorado Secretary of State’s Business FAQs page to know if you must include a professional designator in your business name, such as “PLLC” or “PC.”
Along with including the appropriate designator, business names are governed by the following rules:
A registered agent is someone empowered to accept important documents, including legal notices, on behalf of your business. You may name yourself or a business partner the registered agent, but it isn’t mandatory. Doing it yourself can be a hassle because you can’t leave your office during standard business hours.
ZenBusiness offers a registered agent service that can make your life much simpler. We have access to a range of partners who can act as your registered agent, resulting in discretion and convenience.
You must provide the following:
Next, pay the filing fee and click “submit.”
Colorado law requires your new company to keep a permanent record of all important records and minutes of meetings. You may keep this record at your place of business, but it’s best practice to keep a backup off-site. Consider using a cloud service to do so.
The board of directors for a professional corporation is responsible for guiding its growth and direction. The board of directors may be you and your business partners or investors.
After your board of directors forms, draft your corporate bylaws. These bylaws should outline the process to resolve disputes between members and assign corporate responsibilities to each officeholder. Good bylaws include the process for adding or removing people from the board of directors.
At your first board meeting, review and ratify your corporate bylaws. Decide who is responsible for your company’s day-to-day operations, and to whom they answer. Conduct any other important business, such as selecting the bank for your company. Don’t forget to take the minutes of this meeting, and include them in your corporate record.
One important element of your corporate record is your EIN, or Employer Identification Number. Similar to your personal Social Security Number, this is a unique designation your business will pay corporate taxes under. You can obtain your EIN at the IRS website. Or let ZenBusiness get an EIN for your professional corporation
In addition to federal taxes, ensure you’re complying with all state tax laws. In addition, check with your county and local governments to see if they require additional taxes.
Some businesses face extra regulation from state licensing boards. You are responsible for ensuring your business and its employees have all necessary, up-to-date licenses. ZenBusiness can help with its business license report.
Don’t forget to acquire the proper type of insurance for your business. You’ll want general liability insurance along with any sort of malpractice insurance mandated by your profession. If you plan to hire employees, don’t forget workers’ compensation — this is required by the state of Colorado.
To protect your personal assets, keep your company’s money in a separate account. Shop around locally for the bank which best meets your needs. When you set up this account, carefully designate who has the authority to access it.
Creating a professional corporation in Colorado is a way to take advantage of the favorable business structure and enhanced protections this brings. It can be extremely rewarding, and if you want the easiest way to set up a Colorado PC, talk to ZenBusiness today.
Fees change over time, so check the Colorado Secretary of State website for the most recent fee schedule. Paper filings will incur an additional processing fee and must be paid for by check. Expedited processing is also available for an additional fee.
Legal representation isn’t required to form your Colorado professional corporation; however, it’s strongly recommended that you consult a lawyer throughout the process. This ensures that all requirements are met and there are no legal snags.
Yes. Idaho allows professionals to form partnerships, professional limited liability partnerships, and professional limited liability companies. A solo professional may act as a sole proprietor, which doesn’t require a business registration.
No. All members of a professional corporation must be within the same profession.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
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