How Colorado Legal Changes Affect You and Your Business

This overview of key Colorado laws for 2024 encompasses personal and business legal matters. Learn about your rights and obligations with this comprehensive guide.

Debt Relief and Consumer Protection

Colorado protects consumers and people in debt. Here's an overview of relevant laws:

Debt Consolidation

• Combine all your debts together.
• It can lower your interest rate and make paying more convenient.
• Access to numerous banks in Colorado.
• It may extend your repayment period.

Debt Settlement

• Negotiate for a lower amount than you owe.
• Colorado licenses debt settlement companies.
• Companies must sample charges for their customers.
• Always check for licensed providers to avoid scammers.

Payday Loans

Colorado boasts strong regulations against payday lending

• Maximum interest rate: 36% APR
• Lenders must offer at least a 6-month repayment plan
• Loan amounts are limited

Such policies prevent unfair interest rates and excessive charges.

Learn more:

• Colorado Debt Collection Requirements
• Colorado Payday Loan Laws
• Debt Consolidation and Settlement Laws, Colorado

Bankruptcy Laws

If you can't pay your debts, bankruptcy can help. Colorado follows federal bankruptcy laws but has its own exemptions.

Chapter 7 Bankruptcy

• Also called liquidation bankruptcy
• Eliminates most unsecured debts (e.g., credit cards, medical bills)
• Certain assets might be liquidated to repay creditors
• The process takes 4-6 months

Chapter 13 Bankruptcy

• Also called reorganization bankruptcy
• Allows you to pay debts over 3 to 5 years
• Ideal for avoiding foreclosure or repossession
• Requires regular income

Colorado Bankruptcy Exemptions (2024)

You can keep some property in bankruptcy:

• Homestead: Up to $75,000 ($105,000 if elderly or disabled)
• Personal Property: Household effects up to $3,000
• Motor Vehicle: Valued at $7,500
• Wildcard Exemption: Protects other assets not included in specific exemptions

More details: Colorado Bankruptcy Laws and Exemptions

3. Getting a Business Started

Colorado provides a business-friendly environment. Here's how to get started:

Business Models

Choose from:

• LLCs (Limited Liability Companies)
• Corporations (S-Corps, C-Corps)
• General and Limited Partnerships
• Sole Proprietorships

Each model has different legal protections and tax implications.

Steps to Start a Business

1. Choose a Corporate Name
   • Check availability on the Colorado Secretary of State's website
   • Follow state naming conventions
2. Choose a Business Structure
   • Consider liability protection and tax consequences
3. File Articles of Incorporation
   • LLCs: File Articles of Organization
   • Corporations: Register Articles of Association
   • Pay filing fee (usually $50)
4. Apply for an Employer Identification Number (EIN)
   • Apply free at the IRS Website
5. Open a Business Bank Account
   • Keep business and personal finances separate
6. Get the Right Licenses and Permits
   • Inquire with the Colorado Business Licensing Center

Registration and Licensing

• File with the Colorado Secretary of State
• Most businesses require local or state licenses
• The Business Licensing Center can help determine which licenses you need

Tax Provisions and Incentives

• Register for state taxes with the Colorado Department of Revenue
• Colorado offers tax credits and incentives such as:
  • Job Creation Tax Credit
  • Enterprise Zone Program
  • Advanced Industries Accelerator Programs

Learn more: How to Start a Business in Colorado

4. Estate Planning

Estate planning helps manage your assets after death or during incapacity.

Wills in Colorado

To be valid:

• Signed by you (the Testator)
• Observed by two witnesses

In your Will, you may:

• Provide for loved ones
• Appoint a guardian for minor children
• Choose an executor to administer your estate

If no Will is present, Colorado intestacy laws decide who inherits.

Trusts

Trusts can help:

• Avoid Probate
• Save on taxes
• Keep your estate private
• Manage assets in case of incapacitation

Types of trusts in Colorado:

• Revocable Living Trust
• Irrevocable Trust
• Special Needs Trust

Advance Healthcare Directives

Colorado allows for:

• Living Will: Outlines end-of-life care wishes
• Medical Power of Attorney: Appoints someone to make health decisions

Probate in Colorado

Whether you have a will or not, your estate may go through probate:

1. File the will with the court
2. Appoint an executor or administrator
3. Identify and value assets
4. Pay debts and taxes
5. Distribute remaining assets to heirs

More information: Wills and Trusts in Colorado

5. Property and Real Estate Law

Homestead Exemption

• Protects up to $75,000 in the value of your primary residence from creditors
• Increases to $105,000 if you are elderly or disabled

Landlord-Tenant Laws

• Security deposits must be refunded within 30 days of move-out
• Landlords must provide 24 hours' notice before entering a tenant's home
• Tenants have a warranty of habitability

Property Tax

• Paid annually, based on the appraised value of your property
• Rates vary between counties and cities

6. Employment Laws

Colorado's labor statutes cover a range of areas:

• Minimum Wage: $13.65 per hour in 2024 (higher in some cities)
• Overtime: Paid for hours exceeding 40 per week or 12 per day
• Paid Sick Leave: Earn 1 hour for every 30 hours worked
• Pay Equity Law: Requires pay transparency in job advertisements
• At-Will Employment: Employees can be terminated for any lawful reason
• Workers' Compensation: Required for employers

More information: Colorado Labor Laws

7. Family Law

Marriage

Marriage in Colorado is legal immediately. Common Law Marriage is also recognized.

Divorce

• Colorado does not favor one party over the other.
• There is a 91-day waiting period after filing before a divorce is finalized.
• Marital property is divided equitably, not equally.

Child Custody

• Courts prioritize the best interest of the child
• Joint custody is common
• Child support is calculated based on both parents' income

8. Legal Resources and Assistance

• Colorado Legal Services: Free legal aid for low-income individuals
• Colorado Bar Association: Provides attorney resources and referrals
• Colorado Attorney General's Office: Protects consumers and fights fraud

More information:

• Colorado Attorney General's Office
• Colorado State Bar Association

Conclusion

Understanding Colorado's legal landscape is crucial for both individuals and businesses. This guide covers key areas from debt relief to business formation and estate planning. Laws can change, so always check for the most current information. For specific legal issues, consult a qualified Colorado attorney.