In Colorado, confidentiality agreements can protect trade secrets. To be enforceable, the confidentiality agreement must be reasonable and clearly define what information is protected. If an employee breaks the agreement, the business can sue for damages. 

A significant disadvantage of a C corporation is double taxation. The company pays taxes on its profits, only for shareholders to pay taxes again on their dividends. 

A major S corporation disadvantage is the shareholder limit. S corps can have no more than 100 shareholders, which can be restrictive for businesses seeking to raise capital or expand ownership.