Hey folks, I'm finally taking the plunge and forming an LLC for my side gig (bike repair). I've been reading the Colorado Secretary of State site and my brain is mush. Does Colorado actually require me to appoint a registered agent? I see the term everywhere but not sure if it's mandatory or just a suggestion. Also, can I just be my own agent? I work from my garage so I'm not sure if that counts as a physical address. TIA!
LLC
Does Colorado require an LLC to appoint a registered agent?
Yes, it's required. Colorado law says every LLC must have a registered agent with a physical address in the state. You can be your own agent if your garage address is where you actually receive mail and are available during business hours. PO boxes don't count.
What Pete said. But pro tip: if you use your home address as your registered agent address, it becomes public record. So every spammer and their cousin can find you. I learned that the hard way.
I used a registered agent service for like $50/year. Worth it to keep my home address off the state website. But yeah, mandatory.
Ah, I didn't think about the privacy thing. So if I use a service, do I still have to list my garage as the principal office? Or can that be different?
Principal office can be different from registered agent address. The registered agent is just for legal service. But you'll still need a physical address for the principal office too, I think.
Wait, so if I'm my own registered agent, do I have to be there 9-5? What if I'm out riding? Asking for a friend.
You have to be 'generally available' during normal business hours. So if you're out biking all day, maybe not the best idea. But honestly, who's checking? Unless you get sued.
Actually, the registered agent must be available at the registered office during normal business hours to accept service of process. If you're not there and someone tries to serve you, it could be a problem. But in practice, many small LLCs use their home address and it's fine.
Thanks LegalEagleEye. So it's more about being reachable than literally sitting there? I have a mailbox at the end of the driveway, does that count as physical address?
A mailbox is not a physical address. It needs to be a street address where you can receive documents. The SOS is pretty clear on that.
Yeah, mailbox won't fly. But your garage address is fine as long as it's a real street address.
So what happens if you don't appoint one? Fine? Or does the LLC just not exist?
The LLC won't be in good standing, and you could be administratively dissolved. Plus you can't file reports or maintain the entity. So yeah, it's required.
Also, if you get sued and can't be served because no registered agent, the court might allow service by other means, and you could lose by default. Not a fun time.
Okay, I think I'll just use a service. Any recommendations for cheap ones? Or should I just be my own agent and deal with the spam?
I use Northwest Registered Agent. They're around $125/year but include a lot of privacy stuff. There are cheaper ones like $50 but read reviews.
If you're just starting out and don't mind the spam, being your own agent is free. You can always switch later.