The Ultimate Business License Guide for Colorado Springs, Colorado

Last updated: August 2025

This guide is built to be practical, direct, and fully linked to official sources. Colorado Springs is a home-rule city with its own sales tax system and several local permits. There is no one-size-fits-all “city business license.” Instead, you’ll pull together a few city, county, state, and sometimes federal registrations. This guide walks you through the exact steps, timelines, documents, common mistakes, and Plan B options—plus links to the right offices when you need help.

Quick help box (save these links)

MyBizColorado (one-stop state registration: sales tax, wage withholding, unemployment, and more) — Official State of Colorado portal to register tax accounts and many business basics.
Colorado Secretary of State – Business Filings (form an LLC, corporation, trade name) — Official business registration and filings.
City of Colorado Springs Sales Tax Division (city sales/use tax licensing and filing) — Home-rule city sales tax license, filing, and guidance for businesses operating in the city.
Colorado Department of Revenue – Sales & Use Tax — State retail sales tax, SUTS, rates, filing schedules, and forms.
CDOR GIS Sales Tax Rate Lookup (state-managed lookup for rates and jurisdictions) — Official way to look up the correct rates by address.
Pikes Peak Regional Building Department (PPRBD) – permits and contractor licensing — Building, mechanical, electrical, plumbing permits for the Pikes Peak region.
El Paso County Public Health – Retail Food, Food Trucks, and Health Permits — Health permits for restaurants, caterers, and mobile food units.
Colorado Springs Fire Department – Fire Prevention & Permits — Operational permits, inspections, food truck fire requirements, occupancy.
Colorado DORA – Professional & Occupational Licensing — State professional licenses (electricians, barbers, real estate brokers, etc.).
Colorado Springs Planning & Development (zoning, home occupations, short-term rentals) — Location approvals, zoning, STR permits, land use.
Pikes Peak Small Business Development Center (free advising) — Free local help with licensing, steps, and business planning.

Tip: If you’re stuck and just need a human, the City of Colorado Springs main line is 719-385-2489 (CITY). For Colorado taxes, CDOR’s Taxpayer Hotline is 303-238-7378.

Do you actually need a “business license” in Colorado Springs?

Start here: Colorado Springs does not issue a universal “general business license.” Instead, you’ll likely need one or more of these:

A City of Colorado Springs Sales Tax License (if you sell taxable goods, lease tangible items, or provide taxable services in the city). Source: City of Colorado Springs – Sales Tax Division.
A State of Colorado Sales Tax Account (if you have taxable sales anywhere in Colorado). Source: CDOR – Sales & Use Tax.
State or local industry permits (for example, restaurants need health permits; liquor needs city and state liquor licenses; contractors need PPRBD licenses). Sources: El Paso County Public Health – Retail Food, City Clerk – Liquor Licensing, PPRBD.
Zoning approvals or occupancy permits (if your location or use requires it). Source: Colorado Springs Planning & Development.
Employment-related registrations (state wage withholding, unemployment insurance, workers’ comp). Sources: MyBizColorado, CDLE – Employers, Division of Workers’ Compensation.

Reality check:

If you don’t sell taxable goods, you may not need a city sales tax license—but you still may need zoning approvals, a professional license, or a state tax account (for withholding or other taxes). Always confirm your exact activities against city and state rules.
Good news: most state and city registrations can be done online. Bad news: getting the right combination for your exact business can take time, especially with home-rule city taxes, food/health permits, or construction-related use tax.

What to do if this doesn’t work:

Call the City Sales Tax Division for licensing questions via the city main line 719-385-2489, or use the contact options on City Sales Tax. For state tax, call CDOR at 303-238-7378 or use Revenue Online.

At-a-glance: Which approvals do most Colorado Springs businesses need?

The most important action item: determine if you must collect city sales tax and/or need a health or building/fire permit. Use the decision aid below, then follow the step-by-step section.

Table 1 – Common business types and likely approvals (always confirm via official links)

Business type (example)	City Sales Tax License	State Sales Tax Account	Health Permit	Building/Fire Permit	Industry License	Notes & Official Links
Retail shop in Colorado Springs	Likely yes	Likely yes	Not unless food	Maybe for buildout/sign	Maybe	City Sales Tax, CDOR Sales & Use, PPRBD
Restaurant or food truck	Yes (if taxable sales)	Yes	Yes	Yes (kitchen, hood, mobile fire)	Maybe (alcohol)	El Paso County Public Health, CSFD
Online retailer shipping to CO Springs	Usually yes if nexus	Yes if CO sales	No	No	No	Use CDOR GIS lookup for rates
Home-based tutoring or consulting (no goods)	Maybe no (if no taxable sales)	Maybe no (if no sales tax), but payroll taxes if employees	No	Maybe home occupation rules	Possibly (profession)	Planning – Home Use
Short-term rental (STR)	Yes (lodgers tax applies)	Possibly state account	Not typical	Maybe inspection	STR permit	Short-term Rentals – Planning
General contractor	No for sales (unless taxable)	Maybe for use/sales	No	Yes (contractor license, permits)	Yes (PPRBD license)	PPRBD Contractor Licensing
Barber/cosmetology shop	Yes if retail	Yes if retail	No	Maybe buildout	Yes (DORA license)	DORA – Professions
Liquor store	Yes	Yes	No	Possibly	Yes (city + state)	City Clerk – Liquor

Note: These are typical patterns. Always check official sources for your exact case.

What to do if this doesn’t work:

Use Pikes Peak SBDC for free one-on-one help mapping your exact approvals, or call City Planning & Development via the city main line 719-385-2489 for zoning and STR questions.

Step-by-step: From idea to licensed and open

The most important action item: make sure your business is set up correctly with the state (entity and tax accounts) before you apply for city licenses or permits. That way the city and county systems recognize your legal name, trade name, and FEIN.

Step 1: Choose a structure and register your business entity (if needed)

If you’re forming an LLC, corporation, or nonprofit, file with the Colorado Secretary of State online.
Sole proprietors and general partnerships don’t have to form an entity, but should file a trade name (“doing business as”) if using a name other than the owner’s legal name.
Keep your filed documents and your entity ID handy—you’ll use them for tax accounts and licenses.

Where to apply and learn more:

Colorado Secretary of State – Business Home (online filings, search, and certificates).
Colorado Business Resource Book (OEDIT) (state’s official step-by-step handbook).

Fees:

Colorado has adjusted filing fees several times recently. Check the current fee schedule on the SOS site before you submit. Source: SOS – Fees.

Timelines:

Online SOS filings are usually immediate to same-day, but allow 1–2 business days if there are name issues or corrections.

Required documents:

Proposed business name, principal office address, registered agent name and address, organizer/owner information, and payment method.

Reality check:

Name conflicts and registered agent mistakes are common. Use the SOS business search to check your name before filing.

What to do if this doesn’t work:

If your filing is rejected or you’re unsure which structure fits, get free advice at Pikes Peak SBDC or talk with a Colorado business attorney or CPA. The SOS Help & Support center is linked from each filing page.

Step 2: Get your federal EIN (Employer Identification Number)

Most businesses need an EIN for banking, hiring, and taxes. Apply online with the IRS.

Where to apply:

IRS – Apply for an EIN.

Timelines:

Online issuance is instant when the system is available.

Required documents:

Legal name (as registered), SSN/ITIN of responsible party, business address, and structure type.

Reality check:

The IRS allows only one online EIN application per responsible party per day.

What to do if this doesn’t work:

If you don’t have an SSN/ITIN, or you’re a non-U.S. owner, apply by mail or fax using Form SS-4. See IRS instructions on the same page.

Step 3: Register with the State of Colorado for tax accounts (MyBizColorado)

Use MyBizColorado to register for state-level accounts like sales tax, wage withholding, and unemployment insurance. You may be able to do all three in one session.

Where to apply:

MyBizColorado (official state one-stop portal).

Sales tax notes and numbers:

The state base sales tax rate is 2.9%. Source: CDOR – Sales & Use Tax Overview.
Colorado is a “home rule” state. Cities like Colorado Springs collect their own city sales tax separately from the state. You will likely need both a state and a city tax account if you have taxable sales in the city. Sources: CDOR – Home Rule Guidance, City of Colorado Springs – Sales Tax.
Filing frequency (monthly/quarterly/annual) is assigned based on your expected sales. State sales tax returns are typically due on the 20th of the month following the period. Source: CDOR – Sales Tax Filing Information.
Use the GIS system to verify rates and jurisdictions by address: CDOR GIS Tax Rate Lookup.

Payroll and employer accounts:

If you’ll have employees, you must register for state wage withholding and unemployment insurance (UI). Sources: MyBizColorado, CDLE – Employer Services.
Colorado has paid family and medical leave (FAMLI) premiums for most employers. Rates can change; see the official page: FAMLI – Employer Premiums.
Colorado requires workers’ compensation coverage for most employers. Source: Division of Workers’ Compensation.

Required documents:

FEIN, business entity details, NAICS code, owner info, estimated monthly sales, employee counts, start date in Colorado.

Timelines:

Most state tax accounts are issued same-day to 1–2 business days after application.

Reality check:

Home-rule city collections plus state collections can be confusing. If you plan to sell across different Colorado cities, consider using the state’s SUTS system where available: Sales & Use Tax System (SUTS).

What to do if this doesn’t work:

Use CDOR’s Revenue Online or call 303-238-7378 for help with state tax accounts. For UI issues, contact CDLE via Employer Services.

Step 4: Get your City of Colorado Springs Sales Tax License (if applicable)

If you sell, lease, or rent tangible personal property, or provide taxable services in Colorado Springs, you likely need a City Sales Tax License. The city is home-rule and administers its own sales/use tax system.

Where to apply:

Start at the city’s official page: City of Colorado Springs – Sales Tax Division. Use the “Licensing” section to apply and to access the e-file/e-pay system.

City sales and use tax rates:

The city’s sales and use tax rate is published by the city. See the official rate page for the current city rate and any special taxes: City Sales/Use Tax Rates. As of recent years, the city rate frequently cited is 3.07% for general sales/use tax; always confirm current rates on the city page.

Filing and deadlines:

Filing frequency is assigned by the city. Returns are typically due monthly, quarterly, or annually based on your volume. Due dates and penalties are listed at City Sales Tax – Filing.

Required documents:

FEIN, state tax account numbers (if applicable), business location addresses in Colorado Springs, ownership info, start date, and estimated taxable sales.

Timelines:

City licenses are commonly issued within a few business days after a complete application.

Reality check:

Construction use tax and building materials: The city collects use tax on certain items, often at permit time through PPRBD. Budget for this if you’ll be building out a space. Source: PPRBD – Use Tax Info.

What to do if this doesn’t work:

Contact the City Sales Tax Division via Sales Tax – Contact. If your business operates in multiple home-rule cities, ask about filing options and whether SUTS applies for the other cities.

Step 5: Confirm zoning, location, and occupancy (before you sign a lease)

Colorado Springs zoning rules affect whether your business type is allowed at your chosen address, whether you need parking, a sign permit, or special approvals.

Where to start:

Planning & Development – Zoning and Land Use.
For building permits, sign permits, and contractor licensing, use PPRBD.
If you’re opening to the public or doing a new buildout, expect fire code requirements. See CSFD – Fire Prevention.

Home-based businesses:

Many home-based businesses are allowed under “home occupation” rules (limits on employees on site, traffic, signage, and customer visits). Start at Planning for details and any registration that may apply: Planning & Development.

Short-term rentals (STRs):

STRs require a city permit and compliance with zoning and licensing rules. See Planning – Short-term Rentals.

Required documents:

Site plan/tenant finish plans, lease or deed, contractor info (if building), and design details for signs.

Timelines:

Zoning confirmation can be same-day to 1–2 weeks, depending on whether a formal land use review is required.

Reality check:

Don’t sign a long lease until you’ve confirmed use is allowed, parking is sufficient, and you understand buildout costs and timelines.

What to do if this doesn’t work:

If your desired use is not allowed by-right, ask Planning about variances, conditional uses, or alternative locations. Free SBDC advisers can help you evaluate options.

Step 6: Health, fire, and safety permits (if you handle food or public spaces)

Food service and retail food:

Restaurants, caterers, food trucks, and some groceries need permits from El Paso County Public Health. Start here: Retail Food Establishments.
Food trucks also need fire safety inspection and permits. See Colorado Springs Fire Department.
Plan review is required for new or remodeled food facilities.

Required documents:

Floor plan, equipment list/spec sheets, menu/processes, commissary agreement (for food trucks), water/sewer info, and managers’ food safety training (ServSafe or equivalent).

Timelines:

Plan review can take 2–6 weeks depending on completeness and complexity. Schedule inspections accordingly.

Reality check:

Many food truck launches are delayed by missing commissary agreements, propane installation issues, or last-minute equipment substitutions that don’t match approved plans.

What to do if this doesn’t work:

Schedule a pre-submittal meeting with Public Health and CSFD. The SBDC has food-business specialists who can review your plan package before you submit.

Step 7: Industry-specific city/state licenses

Some industries need city-issued licenses, state-issued licenses, or both:

Liquor: City licensing through the City Clerk, plus state approval via the Liquor Enforcement Division. Start with City Clerk – Liquor Licensing.
Medical marijuana: Colorado Springs has local licensing for medical marijuana businesses. Recreational marijuana sales have historically been restricted in Colorado Springs; verify the current status before proceeding. Start at City Clerk – Marijuana Licensing. For state licensing, see Marijuana Enforcement Division.
Child care: Facility and provider licensing is through the Colorado Department of Early Childhood. See CDEC – Licensing.
Professional services (electricians, real estate, cosmetology, etc.): State licensing via DORA – Division of Professions and Occupations.
Taxis, pawnbrokers, and other special city licenses: check the City Clerk’s page: City Clerk – Licenses.

Documents, fees, and timelines:

Vary widely by license type. Follow the specific application checklists on the city/state pages. Where fees are not listed here, use the official fee schedule linked on each program page.

Reality check:

Background checks, neighborhood surveys (liquor), public hearings, and inspections can extend timelines several weeks to months.

What to do if this doesn’t work:

Ask the City Clerk for a licensing roadmap meeting, or contact an attorney experienced in liquor or marijuana licensing. The SBDC can help organize your tasks and timeline.

Step 8: Open a business bank account and set up your bookkeeping

You’ll likely need your SOS registration (if any), EIN, and city/state tax account letters to open an account.
Choose accounting software that can handle Colorado home-rule city sales tax and state tax separately.

What to do if this doesn’t work:

If your bank asks for documents you don’t have yet, try a different bank or a local credit union, or open a basic “organizing” account and upgrade later.

Step 9: Set up payroll, posters, and HR compliance if you’ll hire

Register new hires with the state: Colorado New Hire Reporting.
Post required labor posters: CDLE – Workplace Posters.
Minimum wage and overtime: CDLE – Wages and Rules.
Paid sick leave (HFWA) and FAMLI: HFWA and FAMLI.
Workers’ comp coverage: Division of Workers’ Compensation.

What to do if this doesn’t work:

Use a reputable Colorado-experienced payroll provider. The SBDC can help you compare vendors and setup checklists.

Step 10: Keep up with renewals and filings

State sales tax, city sales tax, and any special taxes (like lodgers’ tax for STRs) have assigned filing schedules and due dates.
Many licenses renew annually. Put renewal dates in your calendar as soon as you receive them.
Business personal property tax: If you own equipment, furniture, or machinery above the state exemption threshold, you may need to file a declaration with the El Paso County Assessor. Start here: El Paso County Assessor – Business Personal Property.

What to do if this doesn’t work:

If you miss a filing, file as soon as possible to limit penalties and interest. Contact the relevant office through their links above to discuss penalty relief options if applicable.

Taxes you’ll collect and pay (city vs. state)

The most important action item: verify the correct tax jurisdictions and rates for every sale. Home-rule city boundaries do not always match ZIP codes.

Table 2 – Sales/use tax overview

Tax	Who collects	Typical triggers	Where to register	Due dates	Official source
State sales tax (2.9%)	State of Colorado (CDOR)	Retail sale of tangible goods in CO; some services	MyBizColorado	Typically the 20th after period	CDOR – Sales & Use Tax
City of Colorado Springs sales/use	City of Colorado Springs	Retail sale/use in city limits	City Sales Tax Division	Assigned by city	City Sales Tax
County/regional (if applicable)	State collects for county/regional	Address-specific	CDOR – GIS Lookup	State schedule	CDOR – Sales Tax
Lodgers’ tax (STR/hotels)	City of Colorado Springs	Short-term stays	Planning & Development; Sales Tax	Assigned by city	City – Lodging taxes

Notes:

For exact combined rates by address, use the official CDOR GIS Tax Rate Lookup and the city’s sales tax pages. The city posts its own rates and any special local taxes.

What to do if this doesn’t work:

Ask your POS or ecommerce platform to map local home-rule jurisdictions correctly, or work with a sales tax automation provider that supports Colorado home-rule cities.

Industry-specific: What you’ll need and where to go

The most important action item: match your business activity to the permits below and start those applications early—health, fire, and liquor take time.

Table 3 – Industry permits snapshot for Colorado Springs

Industry	Permit/license	Agency	Where to start	Typical timeline	Key notes
Restaurant	Retail Food Establishment	El Paso County Public Health	Retail Food Establishments	2–6 weeks plan review + inspections	Plan review, food manager training, final inspection
Food truck	Mobile Retail Food + Fire	Public Health + CSFD	Retail Food, CSFD	2–6 weeks	Commissary letter, propane safety, fire inspection
Liquor store/bar	City + State Liquor License	City Clerk + LED	City Clerk – Liquor	6–12+ weeks	Public hearing, neighborhood survey, posting
STR (Airbnb/VRBO)	STR Permit + Lodgers’ Tax	City Planning + Sales Tax	Planning – STR	2–6 weeks	Occupancy rules, spacing limits, taxes
Contractor	Contractor License + Permits	PPRBD	PPRBD – Licensing	1–3 weeks	Testing/verification, insurance, permits
Cosmetology/Barber	State License (facility/practitioner)	DORA	DORA – Professions	Varies	Health/sanitation standards
Child care	Facility/Provider License	CDEC	CDEC – Licensing	4–12+ weeks	Background checks, inspections

What to do if this doesn’t work:

Book a free session with Pikes Peak SBDC to build a permit timeline and checklist tailored to your concept and location.

Colorado Springs “no general license” reality, with examples

Real example: A home-based graphic designer in Briargate who doesn’t sell physical products and bills clients for design services only may not need a city sales tax license. But they still need:

A federal EIN (if not using SSN with a bank).
State wage withholding and UI accounts if they hire staff.
City zoning/home occupation compliance if clients visit their home.
State and federal income tax filings and estimated payments.

Real example: A boutique on Tejon Street selling clothing needs:

City of Colorado Springs Sales Tax License (for local sales).
State sales tax account (for state and other non-home-rule taxes as applicable).
PPRBD sign permit if installing an exterior sign.
Possibly a music license (ASCAP/BMI) if playing recorded music—this is not government, but practical to avoid infringement claims.

Real example: A food truck operating within Colorado Springs needs:

Retail Food Establishment permit (mobile) from El Paso County Public Health.
Fire inspection/operational permit from CSFD.
City Sales Tax License if selling taxable items in the city.
Commissary kitchen arrangement and agreement letter.

What to do if this doesn’t work:

Bring your scenario to the SBDC for a quick “map” of the approvals you’ll need and in what order.

Zoning, signs, and buildouts — don’t skip this

The most important action item: check zoning and permit requirements before you sign a lease or start construction.

Table 4 – Location-related approvals

Approval	When needed	Who issues	Where to apply	Notes
Zoning/use check	Before lease	City Planning	Planning & Development	Confirm your use is allowed
Tenant finish/building permits	Any buildout	PPRBD	PPRBD – Permits	Architect/contractor may handle
Fire occupancy/operational permits	Assembly, hazmat, kitchens	CSFD	CSFD – Fire Prevention	Hood systems, extinguishers, egress
Sign permit	Exterior signs	PPRBD	PPRBD – Sign Permits	Follow city sign code
Home occupation	Home-based activity	City Planning	Planning & Development	Limits on traffic and signage

What to do if this doesn’t work:

Ask PPRBD about pre-submittal meetings and plan reviews. If a location isn’t viable for your use, consider other zones that allow it by-right to save time.

What it costs (and how to budget) without guessing

The most important action item: don’t rely on assumptions—open the fee pages and build a line-item budget. Fees change; home-rule cities differ from state fees.

Table 5 – Typical fees and where to find them (confirm current amounts)

Reality check:

Construction use tax on materials can be a surprise. Ask your contractor to estimate city use tax up front.
Don’t forget insurance costs (general liability, product liability, workers’ comp, liquor liability if applicable).

What to do if this doesn’t work:

If you can’t find a fee listed online, call the relevant office or schedule an SBDC budgeting session to avoid shortfalls.

Filing calendars, penalties, and refunds

The most important action item: set filing reminders for city and state returns as soon as you get your account numbers.

State sales tax filing is typically due on the 20th of the month after the period. Some businesses file quarterly or annually. Source: CDOR – Sales Tax File.
City of Colorado Springs sales tax filing frequency and due dates are set by the city; see City – Sales Tax Filing.
Refunds: Both the city and the state have refund processes for overpayments. Check refund forms and time limits on the city/state sites.

What to do if this doesn’t work:

If you miss a deadline, file and pay as quickly as possible to limit penalties and interest. You may request penalty relief in some cases—see the city’s and state’s penalty policies on their sites.

Common mistakes to avoid

Skipping the city sales tax license because you already have a state account.
Signing a lease before confirming zoning, parking, and buildout costs.
Underestimating plan review times for food service or fire permits.
Forgetting construction use tax or assuming your contractor “handled it” without checking.
Using ZIP codes to determine sales tax jurisdictions instead of address-based lookup.
Missing STR permit requirements when listing on Airbnb/VRBO.
Not registering for wage withholding/UI when you hire your first employee.
Using a POS/ecommerce system that can’t handle Colorado home-rule city taxes.
Ignoring sign permit rules and installing a sign without approval.
Waiting until the last minute for liquor or marijuana licensing, which involve hearings and background checks.

What to do if this doesn’t work:

Book a no-cost session with the Pikes Peak SBDC to audit your compliance and build a fix-it plan.

Inclusivity, diversity, and accessibility resources in Colorado

The most important action item: if you qualify for certifications or targeted support, start those applications early—they can open doors to contracts and grants.

Women-owned, minority-owned, and veteran-owned certifications: The Minority Business Office (MBO) of Colorado provides guidance, training, and help navigating certifications (WOSB, MBE/WBE, DBE, SDVOSB). See Minority Business Office of Colorado (OEDIT).
Disadvantaged Business Enterprise (DBE) for transportation contracting: CDOT Civil Rights & Business Resource Center. This certification is widely used by agencies and primes.
Woman-Owned Small Business (WOSB) and Economically Disadvantaged WOSB (EDWOSB): SBA WOSB Certification.
Veteran-owned (VOSB/SDVOSB): VA Vets First Verification.
LGBTQ+-owned business certification: NGLCC (National LGBT Chamber of Commerce). Recognition by many corporations and some public entities.
Disability-owned business certification: Disability:IN – DOBE/SDV-DOBE.
Language access and immigrant-owned business support: The State’s Office of New Americans provides resources and connections to language assistance and technical support. See Colorado Office of New Americans. City service pages often include translation options; start at the City of Colorado Springs homepage and look for accessibility features.

What to do if this doesn’t work:

Contact the Pikes Peak SBDC for individualized help with certification pathways, documentation, and bid readiness.

Realistic timelines

The most important action item: plan parallel tracks—entity/EIN/state tax on one track; location/permits on another—to compress your overall timeline.

Entity formation and EIN: same day to 2 business days.
State tax accounts (sales, withholding, UI): same day to 1–2 business days via MyBizColorado.
City sales tax license: a few business days after application, assuming complete info.
Zoning confirmation: same day to 2 weeks depending on review.
Building/sign permits: 1–3+ weeks plus contractor schedules.
Food service plan review + inspections: 2–6+ weeks.
Liquor licensing: 6–12+ weeks including hearing timelines.
STR permits: 2–6 weeks, varies.

What to do if this doesn’t work:

If timing is tight, schedule pre-application meetings (Health, Fire, Planning) and submit complete packages. Missing documents add weeks.

Real-world examples

“Old Stage Tacos” food truck took four weeks for health plan review and two additional weeks to schedule fire inspection. They lost a weekend event slot because their propane setup didn’t match the approved drawing. They now build in a two-week buffer after the planned inspection to handle corrections. Sources for requirements: Public Health – Mobile Food, CSFD – Fire Prevention.
“Northgate Boutique” opened on time because they ran two tracks: while their contractor pulled permits via PPRBD, they set up the city sales tax license and state accounts. They used the CDOR GIS to set their POS tax rates correctly by address.
A home-based therapist used DORA – Professions to verify licensure requirements, confirmed home occupation limits via Planning, and didn’t need a city sales tax license because they didn’t sell taxable goods. They still registered for state wage withholding once they hired an assistant.

FAQs (Colorado Springs–specific)

Do I need a City of Colorado Springs “general business license”?
- The city does not issue a universal general business license. You may need a City Sales Tax License if you sell taxable goods/services, plus any industry-specific permits. Source: City – Sales Tax Division.
What’s the city sales tax rate?
- Check the official city rates page for the current rate. Historically cited at 3.07% for general sales/use, but verify here: City – Sales/Use Tax Rates. For address-specific totals, use CDOR GIS.
When are Colorado state sales tax returns due?
- Typically on the 20th of the month following your period (monthly/quarterly/annual as assigned). Source: CDOR – Sales Tax File.
I sell services only. Do I need a City Sales Tax License?
- Many services are not taxable, but some are. If you sell any taxable services or goods in the city, you likely need the city license. Confirm with City Sales Tax.
I’m opening a restaurant. What permits do I need?
- Health permit (El Paso County Public Health), possible building/fire permits, City Sales Tax License if you sell taxable items, and possibly liquor licensing. Start here: Retail Food Establishments, CSFD, City Sales Tax, City Clerk – Liquor.
Can I run a business from home?
- Often yes, within home occupation rules (limits on signage, traffic, and employees on site). Check with Planning & Development.
Are short-term rentals allowed?
- Yes, with a city permit and lodgers’ tax compliance. See Planning – STR and City – Sales Tax.
Do I need a contractor license?
- For construction work in the Pikes Peak region, contractor licensing and permits go through PPRBD. See PPRBD – Licensing.
Where do I check my sales tax rates by address?
- Use the official CDOR GIS Tax Rate Lookup. For city-specific guidance, see City – Sales Tax.
Who can help me one-on-one at no cost?
- The Pikes Peak SBDC offers free advising on licensing, taxes, and startup steps. You can also contact the City via 719-385-2489 or the CDOR hotline 303-238-7378.

Quick checklists

Core registrations:
- SOS entity/trade name (if forming or using a DBA): Colorado SOS
- EIN: IRS – EIN
- State tax accounts: MyBizColorado
- City Sales Tax License (if applicable): City – Sales Tax
- Zoning/building/fire: Planning, PPRBD, CSFD
- Health permits (if food): El Paso County Public Health
- Industry licenses: City Clerk, DORA, CDEC
Documents you’ll typically need:
- SOS filings or trade name certificate, EIN confirmation, lease or property agreement, site plan/tenant finish plans, menus/equipment lists (for food), insurance certificates, state tax account numbers.
Filing reminders:
- State sales tax returns (due by the 20th) and city sales tax returns (per city schedule), wage withholding deposits, UI reports, license renewals.

What to do if this doesn’t work:

Build a shared calendar and copy key dates from your account dashboards (state and city). Ask your CPA to set up automated reminders.

How to apply: Links, eligibility, and documents (by topic)

The most important action item: use the official application portals; do not apply through unofficial “filing services” that charge extra.

Colorado SOS (entity formation, trade name):
- Eligibility: Any business operating in Colorado that chooses an LLC/corporation or uses a trade name.
- Apply: SOS – Business Home
- Documents: Name, registered agent, principal office, organizer/owner info, payment.
- Fees: See SOS – Fees.
State sales/wage/UI (MyBizColorado):
- Eligibility: Any business with Colorado taxable sales, employees, withholding, or UI obligations.
- Apply: MyBizColorado
- Documents: FEIN, entity info, NAICS, ownership, estimated sales, payroll start date.
- Fees: Displayed during application; see CDOR and CDLE links above.
City Sales Tax License:
- Eligibility: Businesses selling/using taxable items or services in Colorado Springs.
- Apply: City – Sales Tax
- Documents: FEIN, state tax IDs, addresses, ownership, start date, estimated sales.
- Fees: Check city licensing page for current amounts.
Retail Food (restaurants/food trucks):
- Eligibility: Anyone preparing or serving food to the public in El Paso County.
- Apply: El Paso County Public Health
- Documents: Plans, equipment specs, menu/processes, commissary agreement (mobile), training certificates.
- Fees: See county fee schedules on the page.
Building/sign permits and contractor licensing:
- Eligibility: Any construction or sign installation in the Pikes Peak region.
- Apply: PPRBD
- Documents: Plans, contractor license, insurance, valuations.
- Fees: See PPRBD fee schedules; include use tax on materials where applicable.
Fire permits:
- Eligibility: Businesses with assembly use, cooking, hazardous materials, or mobile cooking operations.
- Apply: CSFD – Fire Prevention
- Documents: Plans, equipment details, inspections.
- Fees: See CSFD permits pages.
Liquor licensing:
- Eligibility: Retail sale/service of alcohol.
- Apply: City Clerk – Liquor and State LED
- Documents: Detailed ownership disclosures, fingerprints/background checks, premises diagrams, neighborhood survey evidence, hearing.
- Fees: Local + state fees; see both pages.
Short-term rentals:
- Eligibility: Rental of residential property for short-term stays within city rules.
- Apply: Planning – STR
- Documents: Proof of ownership or authorization, floor plan/bedroom count, compliance statements, tax accounts.
- Fees: Listed on city STR page.

What to do if this doesn’t work:

Call the specific office using the contact info on each page, or start with the City main line 719-385-2489 and say what you’re trying to do. They’ll route you.

Reality checks, warnings, and tips

Don’t assume your CPA or contractor “handled your taxes/permits.” You are responsible for ensuring accounts and permits exist and are used correctly.
Home-rule taxes: If you sell into multiple Colorado cities, you may need multiple city tax accounts. Use CDOR – Home Rule Cities as a starting point.
Address lookups beat ZIP codes. Always confirm jurisdictions using the CDOR GIS.
Keep copies of plan approvals on hand during inspections (food and fire).
If you change your menu, equipment, or floor plan after plan approval, you may need to re-submit.
Budget for insurance early; some licenses won’t issue without proof (e.g., liquor, contractor licensing).
Document retention: Keep sales tax exemption certificates (e.g., DR 0563 for resale) and records for audits. Source: CDOR – Sales Tax Exemption Certificates (DR 0563).

What to do if this doesn’t work:

If you receive a notice you don’t understand (from the city or state), don’t ignore it. Contact the issuing office immediately using the link or phone on the notice and request clarification or extra time if needed.

Useful tables you can keep open while applying

Table 6 – Who issues what (fast map)

Task	Agency	Link
Form LLC/corp or file trade name	Colorado Secretary of State	SOS – Business
Get EIN	IRS	IRS – EIN
State tax accounts	CDOR/CDLE via MyBizColorado	MyBizColorado
City sales/use tax license	City of Colorado Springs	City – Sales Tax
Health permits (food)	El Paso County Public Health	Retail Food Establishments
Building/sign/contractor	PPRBD	PPRBD
Fire permits/inspections	CSFD	CSFD – Fire Prevention
Liquor licensing	City Clerk + State LED	City Clerk – Liquor
Professional licensing	DORA	DORA – Professions
Short-term rentals	City Planning	Planning – STR

What to do if you’re selling online only

The most important action item: determine nexus and jurisdictions correctly.

If you ship to addresses in Colorado Springs and have economic or physical nexus with Colorado or the city, you may need to collect state and city tax. Use CDOR – Nexus Guidance and the GIS Lookup.
Marketplaces (like Amazon) often collect state sales tax, but they might not handle home-rule city taxes for your own website sales.
If you don’t sell taxable goods (digital services only), you may not need a city license—but verify your service is not taxable.

What to do if this doesn’t work:

Ask your ecommerce platform how they handle Colorado home-rule cities. If they don’t support it, consider a tax engine that does.

If you lease space: read this before signing

Make your lease contingent on zoning approval, building permits, and fire/health approvals as applicable.
Confirm who pays for code-required upgrades (e.g., restrooms, ADA accessibility, fire suppression).
Clarify sign rights in your lease and confirm sign permits with PPRBD.
Confirm parking requirements for your use with Planning.

What to do if this doesn’t work:

If the landlord won’t allow reasonable contingencies, consider another site; delays can be expensive if you’re paying rent before you can open.

Plan B when things go sideways

Can’t get that location approved? Look at zones where your use is allowed by-right to avoid hearings.
License denied? Ask the issuing office for a deficiency letter and fix list; many denials can be cured with added documents.
Budget overrun on buildout? Consider a smaller footprint or phased opening subject to fire/health rules.
Running out of time? Open without non-essential features if legal and safe, then add later with permits.

About sources, accuracy, and numbers

This guide avoids guessing. Where a concrete dollar amount or deadline changes often (fees, license costs, rates), we link directly to the official page that posts the current numbers. For stable numbers (like the Colorado state sales tax base rate of 2.9%), we cite the official tax pages. Always use the links provided to verify current amounts before paying or filing.

Key official sources used and linked throughout:

City of Colorado Springs – Sales Tax (city licensing, rates, filing)
Colorado Department of Revenue – Sales & Use Tax and GIS Lookup (state tax accounts, due dates, rates)
Colorado Secretary of State – Business (entity filings and fees)
MyBizColorado (state tax registrations)
PPRBD (regional building and permits)
El Paso County Public Health – Retail Food (food service permits and fees)
CSFD – Fire Department (fire permits and inspections)
City Clerk – Licensing (liquor, marijuana, and other local licenses)
DORA – Professions and Occupations (state professional licensing)
CDEC – Child Care Licensing
Pikes Peak SBDC (free local advising)

For any figure we didn’t print directly, click the link to see the current posted number. Rules and rates do change.

About this guide

Purpose: Provide a practical, no-nonsense hub for getting set up to operate legally in Colorado Springs, with direct links to official pages and realistic timelines.
Who it’s for: New and existing businesses opening or expanding in Colorado Springs, including home-based businesses, retailers, restaurants, STR hosts, and contractors.
How to use: Skim the Quick Help Box, then follow the step-by-step. Use the tables to find the right offices. Bookmark the city and state sales tax pages.
Feedback: If you find an outdated link or a change in rules, use the contact form on the relevant agency site to confirm, and consider letting the SBDC know so others benefit.

Disclaimer

This guide is for general informational purposes only. Program details, fees, tax rates, deadlines, and rules change. Always verify current requirements and amounts with the official agencies linked above before you apply, file, or pay. If you have legal or tax questions about your specific situation, consult a qualified attorney or CPA.