5 Things to Know About Colorado’s New RA Rules

What's new for CO RAs

1. Residency proof required 

If you’re using an individual as your registered agent (rather than a business), they’ll now need to prove they’re an actual Colorado resident. This can be done by:

• Holding a valid Colorado driver’s license or state ID, or
• Completing an alternative verification process, such as requesting a passcode mailed to the individual’s Colorado address.

To qualify as an individual registered agent, you must be at least 18 years old and have either a primary residence in Colorado or a usual place of business in the state. The intention here is to stop fraudsters from setting up fake businesses with fake agents.  

2. Business entity agents must be legit

If your registered agent is another business (like an LLC, corporation, or foreign entity), it must:

• Be formed or registered with the Colorado Secretary of State
• Be in good standing (no delinquent filings)
• Have a usual place of business in Colorado.

In Colorado, an entity in good standing with a usual place of business in the state may serve as its own registered agent. However, this is a two-step process. You must first select either an eligible individual or another entity as a registered agent during registration. After the entity has been officially formed, you can file a change to self-select the entity to serve as its own registered agent.  

3. Restrictions on P.O. boxes

P.O. boxes and mail-forwarding services won’t cut it anymore. Registered agents must have a real, physical Colorado address where they can accept legal documents in person during business hours.

4. Power to freeze fraudulent businesses

If the Colorado Secretary of State’s office finds out a business was created or registered fraudulently, they can now mark it as “delinquent”—which could freeze its ability to operate. Previously, the Colorado Attorney General’s office could notify the Secretary of State that an entity was created without authorization or for fraudulent purposes, and the entity was marked as fraudulent or unauthorized on the state records. Now, the Secretary of State will also indicate that the entity is delinquent, which limits its ability to conduct business or maintain a court proceeding. 

5. The police get a say

Law enforcement agencies can now initiate a fraudulent business filing complaint directly, making it easier to stop fraudsters before they exploit the system and cause damage.

This isn’t Colorado’s first move against business fraud

These updates build on work the state’s already been doing to fight business identity theft. Two years ago, Colorado launched a Fraudulent Business Filings tool, letting people report cases online where:

• A fake business was set up using their name or address.
• A real business was hijacked by scammers.

When a complaint comes in, the Secretary of State’s office passes it to the Attorney General’s Office for investigation. If fraud is confirmed, the Secretary of State’s Office will then redact victim information and flag the record as suspected fraudulent activity. 

Real world impact of business fraud

These new measures are already helping to counteract business identity theft. In a typical scheme, thieves use a business’ identity to establish lines of credit with banks or retailers. With these lines of credit, identity thieves can then purchase items that can be exchanged for cash or sold with relative ease. The damage can be devastating for a business, wrecking its credit history and leading to significant operational problems. 

Fraudulent filings aren’t just a government paperwork problem. They hurt real businesses. Imagine finding out someone opened a credit card in your LLC’s name, maxed it out, and vanished. That kind of damage to your credit and reputation could take years to fix.

Colorado’s new rules help prevent that by making it harder for scammers to hide behind fake agents and addresses.

Fraud prevention in action 

Since Colorado’s fraud reporting tool launched two years ago, the Secretary of State’s office has received 3,508 complaints about suspicious business filings. Currently, more than half are still under investigation, and 44% have been resolved and officially labeled as “unauthorized or fraudulent.”

That’s thousands of businesses that could’ve been stuck dealing with ruined credit, legal battles, or stolen identities—but now have a faster way to fight back.

It’s clear that Colorado doesn’t want small business owners drowning in red tape. Without these protections, victims could spend years and thousands of dollars on attorneys just to reclaim their business name, address, or financial standing. These new rules cut the bureaucracy and help remove a major cause of stress for business owners.

LegalZoom is here to help

At LegalZoom, we understand that navigating business compliance can feel overwhelming—especially with changing regulations. That’s why we’re here to simplify the process. Whether you need to update your registered agent, verify your business filings, or ensure you’re meeting Colorado’s new requirements, we make it easy to stay protected and compliant. 

Allison DeSantis is Senior Director, Product Counsel at LegalZoom.