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Looking to launch your dream business in the Centennial State? You're joining over 680,000 small businesses that call Colorado home.
Whether you're opening a brewery in Denver, starting a ski rental shop in Aspen, or launching a tech startup in Boulder, this guide breaks down exactly what you need to do—and what it'll cost—to get your Colorado business up and running.
7 Steps to Starting a Business in Colorado
- Choose your business structure
- Register your business name
- File with Colorado Secretary of State
- Get your federal EIN
- Register for Colorado taxes
- Obtain business licenses and permits
- Set up business banking and insurance
1. Choose your business structure
LLC: Most popular for Colorado small businesses, offering liability protection with simple tax filing through Colorado's LLC formation process. Perfect for restaurants, retail shops, and service businesses.
Corporation: Better for businesses seeking investors or planning major expansion through Colorado's incorporation requirements. Requires more paperwork but provides strongest liability protection.
Sole Proprietorship: Simplest structure requiring only a $20 trade name filing. Works for freelancers and consultants but offers no personal asset protection.
Partnership: Similar to sole proprietorship but for two or more owners with a $25 filing fee. Consider an LLC instead for better liability protection.
2. Register your business name
Name availability check: Search Colorado Secretary of State's database to ensure your name isn't taken or "confusingly similar" to existing businesses.
Name reservation: Hold your chosen name while preparing other documents (protects it during your planning phase).
Trade name filing: Required if operating under any name different from your legal name ($20 for sole proprietors).
Domain and trademark search: Check website availability and federal trademarks to protect your brand long-term.
3. File with Colorado secretary of state
Online filing: Complete your Articles of Organization through Colorado's online portal in 10-15 minutes ($50 fee).
Processing time: 1-3 business days online vs 7-10 days by mail—expedited service available for $50-$100.
Registered agent requirement: Designate someone with a Colorado physical address to receive legal documents ($100-$400 annually if hiring a service).
Operating agreement: Not required but strongly recommended to define ownership and management structure.
4. Get your Federal EIN
Free from IRS: Apply online at IRS.gov for immediate issuance if you have an SSN.
Required for: Opening business bank accounts, hiring your team, and filing taxes.
One per business: Each legal entity needs its own EIN—you can't share between businesses.
International applicants: Must apply by fax or mail if you don't have a U.S. tax ID.
5. Register for Colorado taxes
Sales tax license: Required for selling products or taxable services through Colorado Department of Revenue.
Withholding account: Necessary when you hire your first employee for payroll taxes.
Corporate income tax: 4.55% rate for corporations with quarterly payments if you owe over $5,000 annually.
Local tax registration: Denver, Aurora, and other cities may require separate tax accounts.
6. Obtain business licenses and permits
City/county business license: $25-$500 depending on location—Denver and Boulder typically higher than rural counties.
State professional licenses: Required for regulated industries through Colorado DORA (real estate, healthcare, construction).
Health permits: Food businesses need retail food licenses starting at $100 plus plan review fees up to $580.
Zoning permits: Verify your location allows your business type—especially important for home-based businesses.
7. Set Up business banking and insurance
Business bank account: Separate your personal and business finances immediately after getting your EIN.
General liability insurance: Protects against customer injuries and property damage claims.
Workers' compensation: Required in Colorado once you hire your first employee.
Professional liability: Essential for service businesses like consultants, accountants, and healthcare providers.
Pro Tip: Open your business bank account at a local credit union or community bank in Denver, Colorado Springs, or Fort Collins for better small business support and lower fees than national chains.
How to get a business license in Colorado?
To get a business license in Colorado, you need to apply for licenses at the state level (if your profession is regulated), city or county level (general business license), and obtain any industry-specific permits your business requires.
Most Colorado cities require a general business license costing $25-$500, with Denver, Aurora, and Colorado Springs on the higher end.
What are the best cities to start a business in Colorado?
The best Colorado cities for small businesses are Denver (tech and food scene), Boulder (startup ecosystem), Fort Collins (craft businesses), and Colorado Springs (lower costs with military customer base).
These cities combine strong local economies with supportive business communities and access to Colorado Small Business Development Centers.
Denver: Colorado's business hub with 715,000+ residents, diverse industries, and extensive networking opportunities—though higher costs at $100-$500 for city licenses.
Boulder: University town fostering innovation with educated workforce and venture capital access, ideal for tech startups and creative businesses.
Fort Collins: Lower costs than Denver/Boulder with thriving craft brewery and artisan scene, plus Colorado State University providing talent pipeline.
Colorado Springs: Military presence creates a stable customer base, lower commercial rents, and growing tech sector without Denver's premium prices.
Aurora: Colorado's third-largest city offering diverse demographics, lower business costs than Denver, and proximity to Denver International Airport.
Pro Tip: Start in suburbs like Littleton, Lakewood, or Westminster for Denver-area access with 30-50% lower commercial rents and easier permitting.
How much money do you need to start your business in Colorado?
Starting a business in Colorado costs $54 minimum for basic LLC formation, but realistically budget $500-$5,000 including licenses, permits, insurance, and initial operating expenses.
Your actual costs depend heavily on industry—restaurants need $175,000+, while consulting businesses can launch for under $1,000.
What are your required Colorado business filing fees and processing times?
Your required Colorado business filing fees start at $50 for LLC or corporation formation, processed in 1-3 business days online through the Secretary of State.
Additional required costs include a $10 annual report, registered agent service ($100-$400 yearly), and local business licenses varying by city.
- State filing fees: $50 for LLC Articles of Organization or Articles of Incorporation (among the lowest nationally).
- Trade name registration: $20 for sole proprietors, $25 for partnerships operating under assumed names.
- Annual report: $10 yearly to maintain good standing—due date based on formation month.
Expedited processing: Add $50 for 4-6 day processing or $100 for 1-2 day rush service.
What hidden costs should you budget for your Colorado business?
Hidden costs for your Colorado business include local permit fees ($25-$1,000+), industry-specific licenses, annual registered agent services, and compliance requirements that vary dramatically by location.
Jefferson County businesses face the highest local fees while rural Wilcox County-type areas stay minimal.
- Professional licenses: DORA-regulated professions require state licensing with fees from $100-$1,000+ plus continuing education.
- Restaurant permits: Beyond basic licensing, food businesses need health permits, plan reviews, and equipment certifications totaling $500-$2,000.
- Multi-location licensing: Each city requires separate business licenses—operating in Denver, Aurora, and Littleton means three different licenses and fee structures.
- Liquor licenses: $500-$3,000 depending on license type, plus lengthy application processes and potential legal assistance.
What are the real startup costs beyond filing Fees in Colorado?
Real startup costs in Colorado beyond the $50 filing fee include business insurance ($500-$2,000 annually), initial inventory or equipment, marketing materials, and 3-6 months operating capital.
Service businesses typically need $2,000-$10,000 while retail and restaurants require $50,000+.
- Operating capital: Cover 3-6 months of expenses including rent, utilities, and payroll before expecting profit.
- Technology and software: Point-of-sale systems, accounting software, and industry-specific tools ($100-$500 monthly).
- Professional services: Attorney for operating agreements ($500-$2,000), accountant for tax setup ($500-$1,500).
- Initial marketing: Website development, business cards, signage, and grand opening promotion ($1,000-$5,000).
Pro Tip: Start lean by launching from home if zoning allows, using free tools initially, and reinvesting revenue rather than taking on debt—Colorado's strong economy rewards patient growth over rushed expansion.
What support resources can you access for your Colorado business?
Support resources for your Colorado business include free counseling through Small Business Development Centers at CU Boulder, Colorado State, and other universities, plus SBA loans and local chamber networking.
These organizations provide everything from business plan reviews to funding assistance at no cost.
Colorado SBDC Network: Free one-on-one consulting at 15 locations statewide including Denver, Boulder, Fort Collins, and Colorado Springs.
SCORE Mentors: Volunteer executives offering free guidance on business planning, marketing, and growth strategies.
Economic Development Organizations: City and county programs offering grants, tax incentives, and reduced-rate loans for job creation.
Industry Associations: Colorado Restaurant Association for food businesses, craft guilds for artisans, and tech incubators in Boulder/Denver.
Pro Tip: Book your free SBDC consultation before registering your business—they'll review your plan, identify potential issues, and connect you with local resources specific to your industry.
What's your 30-Day action plan to start a Colorado Business?
Your 30-day Colorado business launch plan moves from entity formation in week one through licensing in week two, financial setup in week three, and operational preparation in week four. This timeline assumes you've already chosen your business idea and have basic funding secured.
Week 1: Choose business structure, check name availability, file Articles of Organization online ($50), apply for federal EIN, and create operating agreement.
Week 2: Register for Colorado tax accounts, apply for local business licenses, schedule required inspections, and research industry-specific permits.
Week 3: Open business bank account, secure general liability insurance, set up accounting system, and establish vendor relationships.
Week 4: Finalize location setup, complete employee paperwork if hiring, launch marketing website, and schedule grand opening.
Tip: Start your city business license application immediately after state registration—Denver, Boulder, and Colorado Springs can take 2-3 weeks for approval, potentially delaying your opening.
What's Your bottom line for Colorado business success?
Colorado offers one of the most business-friendly environments in the nation with low filing fees, efficient online systems, and strong support networks from the Rockies to the Eastern Plains.
You'll invest $500-$5,000 to properly launch most small businesses, navigating state, federal, and local requirements that vary significantly between Denver's urban complexity and rural simplicity.
The key is starting with Colorado's simple $50 LLC formation, then systematically working through tax registrations, local licensing, and industry permits while tapping into free SBDC counseling and SBA resources.
Your Next Move: Visit the Colorado Secretary of State website today to check your business name availability, then schedule a free consultation with your nearest Small Business Development Center to review your business plan and get localized guidance for your specific city's requirements.
