Colorado LLC Operating Agreement
A Colorado operating agreement is the legal document that contains the rules and policies your LLC will follow. It’s a contract between you and your members that clearly defines how your LLC will handle important procedures like voting, transferring membership interest, allocating profits and losses, and closing up shop, should the time come.
Your operating agreement is an internal document, kept on record with your LLC. You don’t need to file it with the Colorado Secretary of State, but your operating agreement may be your LLC’s most important document. That’s why at Northwest, we offer operating agreements tailored to suit several different LLC management and ownership structures.
Is an operating agreement required in Colorado?
Colorado doesn’t legally require LLCs to adopt an operating agreement. However, an operating agreement isn’t any less important because it’s not required by law. You’ll need one to open a bank account, override Colorado’s default statutes, reinforce your limited liability status, and navigate big events like mergers and dissolution.
Do I have to file my operating agreement in Colorado?
No. Your operating agreement is an internal document, kept on file with your Colorado LLC.
Does a single-member LLC need an operating agreement?
Yes. We admit that it seems odd—why would you need to draft a legal agreement with yourself? Well, to open a bank account, for one. But there’s also the fact that if you don’t have an operating agreement on file, a single-member LLC can seem perilously close to a sole proprietorship—a business entity without limited liability protection.
*This is informational commentary, not advice. This information is intended strictly for informational purposes and does not constitute legal advice or a substitute for legal counsel. This information is not intended to create, nor does your receipt, viewing, or use of it constitute, an attorney-client relationship. More information is available in our Terms of Service.