Colorado Governor Jared Polis signed Senate Bill 133 into law on June 2, creating a new type of limited liability company called an Artist Company (A-Corp). The bill, first proposed by Kickstarter co-founder Yancey Strickler, establishes a business structure specifically for artists that requires them to retain 51% voting control, prevents transfer of intellectual property to non-artist investors, and allows ownership units based on financial or in-kind artistic contributions. By July 2027, the Colorado Secretary of State will provide standardized forms so artists can form A-Corps without a lawyer.
This matters because Colorado is the first U.S. state to create a legal entity tailored to artists' needs, addressing the power imbalance between creative workers and investors. The A-Corp structure ensures artists maintain creative control and ownership of their work even if the company is sold or dissolved, potentially serving as a model for other states. The legislation makes what was previously only possible with expensive legal help into an accessible standard form, which could significantly impact how artists structure their businesses and protect their intellectual property.