What You Need to Know about A-Corps
Colorado just became the first state in America to create a business entity specifically for artists. Find out what it means for you. Let's break it down:
What's special about A-Corps?
An A-Corp is a type of business entity, a specialized form of LLC designed for artists.
The purpose of the A-Corp law is to protect artists’ interests, especially regarding business control and intellectual property. An A-Corp must:
Be at least 51% artist-owned.
Have a clearly stated artistic mission.
Return artist-owned IP to artist members if the A-Corp dissolves.
A-Corp vs LLC
Practically, many of the protections offered by the A-Corp already existed through customized LLC agreements. However, A-Corps create a framework specifically tailored to artist ownership, governance, and intellectual property (IP) concerns.
Existing Colorado LLCs can convert into A-Corps by amending their governing documents and meeting A-Corp requirements.
The Required Documents
A-Corps are formed by filing Articles of Organization (a public document) with the Colorado Secretary of State, which includes:
The A-Corp’s name
Its artistic mission
Names of organizers
Registered agent information
Whether the company is a public benefit company
Most of the details about how the company operates will be contained in its Operating Agreement (an internal, detailed document), governing:
Ownership
Voting
Management
Profit distributions
IP
Member departures
Dissolution procedures
Can I use AI to create these documents?
We warn you against this, if only because no established A-Corp templates currently exist for AI systems to learn from.
Where to Get Help
You may have many more questions in mind... but don't worry. We'll keep creating resources and continue working with the Colorado Business Committee for the Arts (CBCA) and Colorado Attorneys for the Arts (CAFTA) to support the creative community.
We'll certainly post updates here, so make sure to follow!