Colorado LLC Information

More businesses and entrepreneurs are choosing LLCs as their preferred entity choice every day. According to the Colorado Secretary of State, over 54,000 LLCs were formed in Colorado between July 2010 and July 2011. From July 2007 to July 2011, the total number of active LLCs in Colorado has increased from 309,000 to 518,000. LLCs are becoming increasingly popular because of the convenience, flexibility, and protection they can offer. For more detailed information about the above figures, please see the charts below.

Colorado LLCs are governed by the Colorado LLC Act. (Colorado Revised Statutes § 7-80). This statute contains much of the information you need to understand the default rules governing LLCs. By law, the managerial structure and member intent of an LLC without an operating agreement shall be judged according to the default rules contained within the Colorado LLC Act.

§ 7-80-180(4) states:

“It is the intent of this article to give the maximum effect to the principle of freedom of contract and to the enforceability of operating agreements.”

A custom operating agreement can override most of the default rules used in Colorado. If a dispute involving your LLC arises in the future, a custom operating agreement will protect your original intent and safeguard your interests.

Allow me to do the heavy lifting for you. I understand which default rules can be overridden and which ones are non-waivable. Contact me today to get started.