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Colorado · How-To Guide

How do I get a business license?

Colorado Secretary of State (entity formation) / Colorado Department of Revenue (sales tax license) / City/County for local licenses
Step by Step

How to do it

  1. Determine your business structure: sole proprietor, LLC, corporation, partnership
  2. Register your business entity with the Colorado Secretary of State (for LLCs and corporations) at sos.colorado.gov/business - file online through the Secretary of State's Business Filing System
  3. Obtain an EIN (Employer Identification Number) from the IRS at irs.gov if forming an entity, hiring employees, or operating as a partnership
  4. Register with the Colorado Department of Revenue for a Colorado Sales Tax License if you sell taxable goods or services in Colorado - apply online at revenue.colorado.gov; $16 fee; required to collect and remit Colorado sales tax
  5. Register with the Colorado Department of Labor and Employment if you have employees - unemployment insurance and workers' compensation requirements apply
  6. Obtain a local business license from your city and/or county - most Colorado cities and some counties require a local business license; requirements and fees vary significantly
  7. Check for industry-specific licenses: contractors (DORA - Division of Professions and Occupations), health professionals, real estate agents, and many others require state professional licenses
  8. Renew entity periodic report with Secretary of State; renew local license per city schedule
Details

What you need to know

Required Docs
  • Business name and type of activity
  • Business address (physical Colorado location)
  • Entity formation documents if LLC or corporation
  • EIN or Social Security number
  • Industry-specific certifications if applicable
Fee
LLC formation: $50; corporation: $50; Colorado Sales Tax License: $16; local business license fees vary widely ($25-$500+ depending on city and business type); periodic report filing: $10 (due annually) RENEWAL: LLC/Corp periodic report due annually (within 3-month window of formation anniversary); local license annual or biennial per city ONLINE OPTION: Yes - sos.colorado.gov/business (entity formation and periodic reports); revenue.colorado.gov (sales tax license); city portals vary WHERE TO GO: Colorado Secretary of State (entity formation); Colorado DOR (sales tax license); City Finance/Licensing Office (local business license); DORA (professional licenses)
Online Option
Yes - sos.colorado.gov/business (entity formation and periodic reports); revenue.colorado.gov (sales tax license); city portals vary
Where to Go
Colorado Secretary of State (entity formation); Colorado DOR (sales tax license); City Finance/Licensing Office (local business license); DORA (professional licenses)
County-specific variations apply

Colorado business licensing is primarily state (Secretary of State + sales tax) and city-level. County-level business licenses vary - most unincorporated county areas do not require a separate county business license, but some do. In Colorado, cities administer their own business licenses and sales taxes - Denver, Aurora, Colorado Springs, Fort Collins, Boulder, and other cities each have their own portals and requirements. Verify with your specific city or county.

Colorado Notes

Important state-specific details

  • Colorado LLC annual periodic report: due annually during the 3-month window surrounding the formation anniversary; $10 filing fee; failure to file results in delinquency and potential dissolution.
  • Colorado Sales Tax License ($16): required for businesses selling taxable tangible goods; Colorado's state sales tax rate is 2.9% - local city and county taxes add 1%-8% more in most areas; Colorado's combined rates vary significantly by location.
  • Home Rule Cities: Denver, Colorado Springs, Boulder, and other "home rule" cities collect their own sales tax separately from the state - businesses in these cities must register with both the state DOR and the city.
  • DORA (Department of Regulatory Agencies): oversees professional licensing for contractors, engineers, real estate, health professions, and many others - dora.colorado.gov.
  • DBA (Trade Name): if operating under a name other than your legal name, register a trade name with the Colorado Secretary of State.
  • Colorado has a state income tax (4.40% flat rate as of 2024).
Official Source

State office contact

State Office
Colorado Secretary of State, Business Division - sos.colorado.gov/business | (303) 894-2200; Colorado DOR (sales tax) - revenue.colorado.gov | (303) 238-7378; DORA - dora.colorado.gov | (303) 894-7855