Colorado artists can form companies and keep voting control

Artists may form limited liability companies under the Colorado Artist Company Act and set ownership and governance rules. These rules apply to limited liability companies organized as artist companies, including companies whose purpose includes or materially furthers an artistic mission. Artists must own and maintain at least 51% of the company’s voting securities. Company documents may set ownership and governance structures, and may describe how the artistic mission ranks against financial goals. The act takes effect after the 90-day period following the legislature’s final adjournment, unless a referendum petition is filed; if referred, voters must approve it before it takes effect.

Artist companies may set terms for assigning or licensing creative work and for what happens to that work when a member leaves or the company closes. These provisions concern artist-members and creative work related to an artist company’s artistic mission. Company documents may require artist-members to assign or exclusively license work related to the company’s artistic mission, and must describe the work covered. An artist-member who gives written notice to retain specified work when joining or within 30 days after creating it must still give the company a permanent, nonexclusive license to use it in the member’s work for the company. When the company dissolves, covered work assigned, exclusively licensed, or created by artist-members returns to those artists, subject to federal tax law, existing licenses, and specified financial obligations. Written notice to retain specified work may be given when an artist joins or within 30 days after creating the work. Reversion of covered work applies when the company dissolves.

An artist company may elect public benefit status; companies with that status must balance specified interests and give members and donors annual statements. These provisions apply only to artist companies that choose public benefit status. The company must name one or more specific public benefits in its governing documents; a later election requires approval by a majority of all member voting interests and artist-member voting interests. Managers must balance members’ financial interests, the interests of people materially affected by the company, its stated public benefits, and its artistic mission. The annual statement must report on the company’s public benefits, artistic mission, and effects on people materially affected by its conduct. A private lawsuit cannot be based solely on failure to pursue a public benefit, fulfill the artistic mission, or meet the specified duties. A public benefit artist company must provide its statement at least annually.

The Colorado Department of State receives $93,878 for implementing the act in fiscal year 2026–27. The appropriation is for the Colorado Department of State to implement the act. The money comes from the Department of State cash fund. The department may use $5,478 for business and licensing division staff, based on an assumed additional 0.1 full-time equivalent, and $88,400 for information technology division staff. The appropriation applies to state fiscal year 2026–27.