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Common questions when starting a Colorado business

All potential first-time business owners have questions when they are in the process of starting their companies. From a legal standpoint, there may be many things that have to be done that they do not have experience with simply because they have not gone through the business formation process before. It can be good for Colorado residents to look at frequently asked questions to see if they are looking for some of the same answers.

First of all, people often ask how to declare their company a Sole Proprietorship, or they may want to know how to declare a business that is a General Partnership. Both things can be done simply by going to the Secretary of State's office. There, they will need to put in a form known as a Statement of Trade Name.

Others are interested in starting what is known as an S corporation or starting up a C corporation. To do this, they should not turn to the Secretary of State, as this is handled by the Internal Revenue Service. They will need to file with the IRS to figure out what status their new business can use.

Finally, business owners may need to get a business license to begin legally operating, but they might not know how to get it. While the Secretary of State's office does have a Business Division, it is important to note that they cannot give out the proper license. This is something that is often handled by offices at the city level or the county level. In some cases, it can also be done through the Colorado Department of Regulatory Agencies, or the new business owner can contact the Colorado Department of Revenue.

Source: Colorado Secretary of State, "Business FAQs: Beginning a Business" Aug. 13, 2014

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