How to Get a Business License in Colorado: A Step-by-Step Guide
Starting a business in Colorado is an exciting endeavor, but before you can legally operate, you’ll need to obtain the appropriate business licenses and permits. The process varies depending on your industry, location, and business structure, but this guide will walk you through everything you need to know about getting a business license in Colorado.
Whether you’re launching a small home-based business, an LLC, or a corporation, this article will outline the steps, costs, and requirements to ensure your business is legally compliant.
Do You Need a Business License in Colorado?
Unlike some states that require a general business license, Colorado does not have a statewide business license requirement. Instead, licensing depends on:
- Local city/county requirements
- Industry-specific permits
- State-level regulatory licenses
If your business operates in certain industries or requires local approvals, you may need to apply for multiple licenses at the city, county, or state level.
Step 1: Register Your Business with the State of Colorado
Before applying for any licenses, your business must be legally registered with the Colorado Secretary of State. Here’s how:
1. Choose a Business Structure
Decide whether you want to register as:
✔ Sole Proprietorship – No formal registration needed, but you may need local permits.
✔ Limited Liability Company (LLC) – Protects personal assets and provides legal benefits.
✔ Corporation (S-Corp, C-Corp) – Best for businesses with investors and shareholders.
✔ Partnership – A business with two or more owners sharing responsibility.
2. File Business Formation Documents
- LLCs – File Articles of Organization with the Colorado Secretary of State.
- Corporations – File Articles of Incorporation for S-Corp or C-Corp status.
- Trade Names (DBAs) – If operating under a name different from your legal entity, register a DBA (Doing Business As) with the state.
👉 File online at the Colorado Secretary of State’s website.
Step 2: Get a Colorado State Tax ID and Employer Identification Number (EIN)
1. Apply for a Federal EIN (Employer Identification Number)
- Required for businesses with employees or corporations/LLCs.
- Issued by the IRS (Internal Revenue Service) for tax purposes.
- Apply online at the IRS website.
2. Register for a Colorado State Tax License
Businesses selling physical products or providing taxable services must register for a Colorado Sales Tax License with the Colorado Department of Revenue.
- If you sell products online or in-store, you’ll need a Sales Tax License.
- Some service-based businesses also need a Use Tax License.
- Apply online at MyBizColorado.
Step 3: Apply for Local Business Licenses & Permits
1. Check City and County Licensing Requirements
While Colorado does not require a statewide general business license, many cities and counties do.
✔ Denver – Requires a general business license for many businesses.
✔ Colorado Springs – No general license but may require specialized permits.
✔ Aurora – Requires certain businesses to register.
✔ Boulder – Requires businesses to obtain a local license.
👉 Check your local city or county government’s website to see if you need a local business license.
2. Apply for Industry-Specific Licenses (If Required)
Certain professions and businesses require additional licensing from state agencies:
- Restaurants & Food Businesses – Need health permits from the Colorado Department of Public Health & Environment (CDPHE).
- Construction & Contractors – Require licensing at the city/county level.
- Real Estate Agents – Need licensing from the Colorado Division of Real Estate.
- Childcare Providers – Must register with the Colorado Office of Early Childhood.
- Liquor Stores & Bars – Need a Liquor License from the Colorado Department of Revenue.
👉 You can check all Colorado business licensing requirements at MyBizColorado.
Step 4: Obtain Professional and Home-Based Business Permits
1. Home-Based Business Permits
If you run a business from home, your city or county may require:
✔ Zoning Permits – To confirm your business activities are allowed in a residential area.
✔ Home Occupation Permits – If customers visit your home for services.
2. Professional Licenses
Professions such as doctors, lawyers, accountants, and cosmetologists need to be licensed through the Colorado Department of Regulatory Agencies (DORA).
👉 Find professional licensing details at the DORA website.
Step 5: Renew and Maintain Your Licenses
Most business licenses and permits in Colorado must be renewed annually. Stay compliant by:
✔ Renewing your licenses and tax permits before expiration.
✔ Updating business registration with the Secretary of State each year.
✔ Complying with local business regulations.
You can track renewals and file updates through MyBizColorado.
How Much Does It Cost to Get a Business License in Colorado?
The cost of licensing varies based on your location and industry. Typical fees include:
- State Business Registration (LLC/Corporation) – $50–$100
- DBA/Trade Name Registration – $20
- Sales Tax License – $50 (one-time fee)
- Local Business License – $25–$300 depending on the city
- Industry-Specific Licenses – Varies ($50–$500+)
Check with your local government for exact costs and fees.
Final Thoughts: Get Your Business Licensed in Colorado Today
Starting a business in Colorado is simpler than you might think, but ensuring compliance is key to avoiding fines and legal issues.
Quick Recap of the Steps to Get Licensed in Colorado:
✅ Register your business with the Colorado Secretary of State.
✅ Obtain an EIN and state tax ID if needed.
✅ Check city and county licensing requirements.
✅ Apply for necessary industry-specific and home-based business permits.
✅ Renew licenses annually to stay compliant.
Once you’ve completed these steps, you’ll be ready to legally operate your business in Colorado and focus on growing your venture! 🚀
👉 Need more details? Visit MyBizColorado for all licensing and registration resources.
