Business Representation

The type of business license you need in Colorado depends on the business you plan to operate and its location. Federal, state, and local governments may all have licensing requirements. Depending on your business type, you may also need to obtain a certain license to sell certain products or services lawfully. 

Visit the Department of Regulatory Agencies (DORA) for more information.

All employers must report new hires to the Colorado State Directory of New Hires within 20 days of the date of hire. This requirement applies to newly hired and rehired employees, as well as independent contractors in some cases. Failure to report can result in costly penalties.

Colorado law doesn’t explicitly mandate specific cancellation policies for contracts. However, it’s generally advisable for businesses to include clear and fair policies to avoid disputes. Our business representation attorneys recommend incorporating a 72-hour rescission period clause in contracts to demonstrate good faith.

You can face significant legal and financial consequences if your business is not compliant with Colorado's paid sick leave requirements. Noncompliance can result in civil actions brought on by employees, investigations by the Division of Labor Standards and Statistics, as well as potential penalties. 

Before an aggrieved employee can file a civil action, they must either submit a complaint to the Division of Labor Standards and Statistics or make a written demand for compensation or other relief to the employer. 

You have 14 days to respond to such a notice or demand. Our attorneys can help you respond to the complaint or demands to potentially resolve the issue without litigation.

If a lawsuit is filed, our business law attorneys can prepare a strong defense. For instance, if you’re in compliance with the Healthy Families and Workplaces Act but failed at recordkeeping, we may be able to demonstrate compliance through a preponderance of the evidence.

Under C.R.S. 8-13.3-411, employers found in violation may be liable for back pay, unpaid wages, and other relief. This may include reinstatement or front pay if reinstatement is not feasible. You may also face fines, penalties, and orders to cease noncompliance and implement corrective measures. Civil fines can include up to $100 per violation.

With IP infringement cases, the potential damages you can recover or be liable for depend on the type of intellectual property involved and the applicable legal framework. Damages in IP cases are generally compensatory damages to restore the injured party. In some scenarios, punitive damages may also apply to deter future infringement.

If you’re a Denver business owner looking to recover damages for IP infringement or are being sued for IP infringement, your best option is to work with a knowledgeable business representation attorney.

Some common legal defenses against a business debt claim in Colorado include statutory and common law defenses. A common defense is the statute of limitations. Under C.R.S. 13-80-103.5, creditors generally have six years to take action against a business debt. This period begins when the debt becomes due, and this defense can bar claims filed after the prescribed period.

Another common defense is failing to comply with statutory requirements, such as failing to file necessary certificates or documentation.

If the creditor isn’t authorized to collect debts in the state, we may also be able to establish a defense under the Colorado Fair Debt Collection Practices Act. This defense can be particularly effective if the debt collector has not complied with licensing requirements. Also, if the creditor engaged in prohibited practices to collect a debt, such as harassment, making threats, or using obscene language, you may have a claim against the creditor.

Your best chance at defending business debt claims is to work with an experienced business representation attorney.

In Colorado, a limited liability company (LLC) is considered legally separate from its owner(s). “Piercing the corporate veil” refers to a court disregarding the legal separation between a business and its owners, shareholders, or members to hold them personally liable for the entity’s obligations. 

This extraordinary remedy is applied in limited circumstances to prevent the misuse of the corporate form to penetrate fraud, defeat rightful claims, or achieve other equitable outcomes. Situations typically involve a corporate structure trying to deceive creditors, defraud others, or a lack of separation between the company’s affairs and its owners’ or stakeholders’ personal affairs.  

A savvy business law attorney can help you defend your personal assets if you face a lawsuit that may involve the court lifting the veil.

In Colorado, startups are not legally required to have co-founder agreements, but having one is vital for your business. These agreements define roles, equity division, decision-making processes, and dispute resolution methods. Without one, your co-founder relationship will be governed by Colorado's default legal rules, which might not align with your or your partner’s intentions or expectations. 

Without an agreement, profits and losses are typically allocated based solely on the value of contributions recorded in your business's books. This arrangement can lead to crucial factors like time and effort being overlooked, potentially leading to ownership disputes. 

Notably, the lack of a co-founder agreement can complicate the dissolution of the partnership. Dissolution may occur for various reasons, including the express will of any partner. Any co-founder could dissolve the partnership, potentially leading to business disruption. 

Without a co-founder agreement, your business is subject to future legal and operational challenges. Contact a Denver business representation attorney to ensure your co-founder agreement is legally sound.