What is a Colorado Limited Liability Company (LLC)?
A Colorado Limited Liability Company, commonly referred to as a LLC, is a legal entity that is formed at the state level to separate a business owner from his or her business. Like a corporation, the owners of a LLC are not personally liable for the debts of a properly formed and maintained LLC. Like a partnership or sole proprietorship, an LLC has operating flexibility and is a pass-through entity for tax purposes. This means that the profits of the LLC are passed through and taxable to the owners of the LLC unless the LLC elects to be taxed as a corporation.
