LLC required for "official" business name?

Question

I want to make the name of my business official in my state of Colorado, and it looks like I might need to set up an LLC first so the business is actually a business. Does that sound right? Or could I be missing something?

Ryan Sanders · Answer

thanks everyone! I'll be talking with a CPA on the 18th but I haven't found an attorney yet. I'm still looking for that

Mira J. · Answer

I'm not sure how it works in Colorado. However, here in Illinois I acquired an assumed business name certificate from city hall and was able to open a business bank account with that. From what I understand about real estate so far, some lenders require your articles of incorporation showing that you formed an LLC.

Shawn Ackerman · Answer

NO.  If you do not want to form an LLC or a Corp(S/C) you can either set up a "DBA" Doing Business As structure or "Sole Proprietorship"  which is pretty much the same thing and cost little to no money to create unlike the expenses that come along with forming an entity.  in ether structure you will be personally liable for the business debt unlike an LLC where the owner is not liable for business debt granted he/she didn't acquire the debt with a PG.  So if you don't want to set up an LLC you will have

1. No protection -  As you are not separate from the business.  All of your assets are exposed(Get gap insurance).

2. Personally liable for business debt - If the business runs out of money then your personal assets are up for grabs if you cannot pay.

In any event consult your CPA.

Samuel R. Harden · Answer

If all you want to do is protect a business name in Colorado, you can use the trade name form for individuals found here: http://www.sos.state.co.us/pubs/business/sampleFor...

Regarding the rest of your post, it is not clear what exactly you're looking to accomplish, and I'd suggest talking to an attorney. It sounds like you are a sole proprietor business, meaning there isn't any difference between you and your business for liability or tax purposes. Any changes to that would depend on what goals you're trying to accomplish, but if you solely want to protect a name in Colorado, just follow the above link and file online.

LLC required for "official" business name?

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