City business license guide
Last updated: April 29, 2026
Starting a business in Colorado Springs can feel hard because the rules come from more than one office. The city may handle licensing, city sales tax, zoning, signs, short-term rentals, and some permits. El Paso County may handle food permits and business personal property tax. Colorado may handle entity filings, trade names, tax accounts, employer accounts, and professional licenses. The IRS may handle your federal tax ID.
Bottom line
Colorado Springs does not appear to issue one universal city business license for every business. The city says that, other than liquor and marijuana licensing, only the business types listed by the City Clerk need a business license issued by the City Clerk’s Office. Those listed types include areas such as concrete contractor, escort, bicycle-share, funeral escort, massage business, mobile food vendor, pawnbroker, pedal-cab, security, sexually oriented business, tree service, and excavation.
That does not mean you can skip local checks. A Colorado Springs business may still need a city Sales and Use Tax License, zoning approval, a Home Occupation Permit, a short-term rental permit, a sign permit, building or fire review, county health approval, state tax accounts, a trade name, an entity filing, an employer account, or a state professional license.
Quick start: what to check first
- Check whether your business type is listed on the city’s City Clerk licensing page. If it is listed, read that license page before you operate.
- If you sell taxable goods, lease items, rent rooms, collect city taxes, or report use tax, check the city Tax Applications & Returns page and the city GenTax portal.
- If you will work from home, check the city Home Occupation Permit page before you use the home address for business.
- If you will use a shop, office, kitchen, warehouse, salon, studio, or other site, check zoning and building needs before signing a lease.
- If you sell or serve food, contact El Paso County Public Health before buying equipment or setting an opening date.
- If you use a business name that is not your legal name or entity true name, check Colorado trade name rules.
Colorado Springs facts box
| City | Colorado Springs, Colorado |
|---|---|
| County | El Paso County |
| Main city business license office | City Clerk’s Office for listed City Clerk business license types |
| City sales tax office | City Sales Tax Division, Finance Department |
| Planning and zoning | Colorado Springs Planning Department and Land Use Review / Development Review |
| Building permits | Pikes Peak Regional Building Department |
| Food permits | El Paso County Public Health for Colorado Springs retail food establishments |
| State business filings | Colorado Secretary of State and MyBizColorado |
What does this mean for me?
Your first question should not be only, “Do I need a business license?” A better question is, “Which layer applies to my exact business?” A cleaner, home baker, food truck, massage business, online seller, and short-term rental host can all have different answers. For background, see Do I Need a Business License? and How to Get a Business License in Colorado.
City, county, state, and federal layers
| Layer | What it may cover | Where to check |
|---|---|---|
| City | Listed City Clerk business licenses, city sales and use tax, zoning, home occupations, signs, short-term rentals, local permits | Colorado Springs City Clerk, Sales Tax Division, Planning Department, Fire Department, and city online portals |
| County | Retail food licensing, inspections, business personal property tax, some health and environmental items | El Paso County Public Health and El Paso County Assessor |
| State | Business entity filings, trade names, state sales tax, withholding, unemployment, workers’ compensation, professional licenses | Colorado Secretary of State, Department of Revenue, CDLE, DORA |
| Federal | EIN, federal tax duties, BOI rules when they apply | IRS and FinCEN |
| Private platforms | Marketplace, delivery app, payment processor, booking site, or landlord rules | Your contract, platform dashboard, lease, HOA, or insurer |
City requirements in Colorado Springs
City Clerk business licenses
The Colorado Springs City Clerk’s Office handles the listed city business license types. The city says businesses not listed may still need other state or local approvals, permits, or licenses. If your business fits a listed category, read the city’s Business Licensing page for that exact license.
City Sales and Use Tax License
Colorado Springs is a home-rule city for sales and use tax. The city says it collects its own city sales and use tax, while Colorado collects the state, El Paso County, and Pikes Peak Rural Transportation Authority taxes. The city’s Sales Tax page listed the city rate as 3.07% and the total combined rate as 8.20% in its posted rate note. Confirm rates before you collect or file.
The city says the Sales and Use Tax License applies to retailers engaged in business in the city when collecting city sales tax, lodgers’ tax, auto rental tax, motion picture theatre admissions tax, bicycle excise tax, or reporting use tax. The city also says the license expires every odd year on December 31 and must be renewed. You can apply, renew, print a license, file and pay, and update account information through Sales Tax Online Services.
Zoning, home business, signs, and short-term rentals
Before opening at a location, check the use of the property. The city Planning Department handles planning and development submittals. Zoning may matter if you change a space, open a storefront, add a sign, work from home, or use property in a new way.
For home-based businesses, the city Home Occupation Permit page lists a $120 non-refundable application fee. It also says an approved home occupation does not require renewal, but a new application is required if the business moves. The page lists limits on nuisance, outside employees, deliveries, signs, outside storage, and the area used in the home.
The city’s Sign Applications and Information page says any new sign on private property requires a sign application. Signs in a public right-of-way need a revocable permit before placement.
The city’s Short Term Rentals page says there are owner-occupied and non-owner-occupied permits. It also lists zoning limits for some non-owner-occupied rentals and says each listing requires a separate permit application and fee.
Building, certificate of occupancy, and fire review
If you build, remodel, add equipment, or change how a building is used, check building rules before work starts. The Pikes Peak Regional Building Department reviews plans, issues permits, and performs inspections for Colorado Springs and nearby areas. The city also lists Applications, Forms and Permits for land use items such as development plans, conditional uses, zone changes, and compliance letters.
Some businesses may also need fire review, especially restaurants, daycares, mobile food units, assembly spaces, auto shops, warehouses, or businesses using heat, fuel, chemicals, alarms, or suppression systems.
El Paso County requirements
Retail food and health permits
El Paso County Public Health licenses and inspects retail food establishments in Colorado Springs. Its Retail Food Establishments page says retail food licenses are tied to current ownership, location, and Colorado Sales Tax License. The county lists examples such as restaurants, mobile food trucks, coffee kiosks, convenience stores, grocery stores, bars, hotels, and special events.
Food businesses should contact the county before signing a lease, buying a truck, remodeling a kitchen, or choosing equipment. A change of ownership may be treated differently than a new build or major remodel.
Business personal property tax
El Paso County also has a business personal property layer. The El Paso County Assessor says business personal property includes furniture, equipment, machinery, security devices, signs, and other movable items used to produce income. The Assessor says owners must declare taxable business personal property only if the total actual value is greater than $56,000, effective January 1. This is not a business license; it is a county property tax issue.
Colorado state requirements
Entity filing and trade name
Colorado state filings are separate from city licensing. MyBizColorado is the official state filing tool for registering and managing a business, from a sole proprietorship to an LLC. The Colorado Secretary of State also has a Business Information page for business searches, name availability, new records, and existing-record filings.
A trade name is Colorado’s DBA. The Secretary of State says a trade name is an assumed name used to identify the business or activity. It is not the same as an entity. For a plain comparison, see Business License vs LLC vs DBA vs Seller’s Permit.
State sales tax and withholding
The Colorado Department of Revenue says the Colorado sales tax license is for state and state-administered sales and use taxes. It does not cover every home-rule city requirement. A Colorado Springs seller may need both a state sales tax license and a city Sales and Use Tax License.
For state retail sales, review the Standard Retail License page. The state lists fees by the half-year and year in which you apply, plus a $50 deposit for new accounts. If you have employees or make payments that require Colorado withholding, check the Withholding Accounts page.
Employees, workers’ compensation, and state professional licenses
The Colorado Department of Labor and Employment says employers may need to register for unemployment insurance when paying wages to at least one employee in Colorado. CDLE’s Starting a Business page points employers to MyBizColorado or MyUI Employer+ for unemployment registration. Employers should also check wage rules, new hire reporting, workers’ compensation, and FAMLI.
If your work is regulated, check the state license before selling services. DORA’s DPO homepage links to applications and license checks for fields such as barber and cosmetology, electrical, plumbing, architecture, engineering, land surveying, and more.
Federal requirements
Many businesses need an EIN, also called a federal tax ID number. The IRS says you generally need an EIN if you hire employees, operate a partnership or corporation, pay sales or excise taxes, change business structure or ownership, or administer certain trusts or plans. Use the IRS Get an EIN page, not a paid lookalike site.
Beneficial ownership reporting rules changed in 2025. FinCEN says U.S.-created entities and their beneficial owners are now exempt from BOI reporting under the interim final rule, while certain foreign entities registered to do business in the United States may still have duties. Check FinCEN BOI before relying on old advice.
Costs you can plan for
Do not build your budget from guesses. Some costs are posted, some depend on the license type, and some depend on your site, work, equipment, or business model. The table below lists costs that were visible on official pages as of this review. Confirm them before filing.
| Item | Posted cost or note | Where to confirm |
|---|---|---|
| Most City Clerk business licenses | The city says most business license fees are $110 annually; check the specific license page. | City Clerk Business Licensing |
| City late renewal for most business licenses | The city says late renewal is usually 50% of the license fee in addition to the license fee. | City Clerk Business Licensing |
| Private security background check and some other licenses | The city lists an additional $7 background check for private security officers and several other licenses. | City Clerk Business Licensing |
| City Sales and Use Tax License applications and renewals | The city sales tax page says applications and license renewals are online only, no fees. | City Sales Tax Division |
| Home Occupation Permit | The city lists a $120 non-refundable application fee. | Planning Department |
| Mobile Food Vendor License | The city lists $110 for the first unit, $25 for each additional unit, $55 late renewal, and $5 duplicate license. | City Clerk Mobile Food Vendor page |
| Colorado state retail sales tax license | The state lists fees by year and half-year, plus a $50 new-account deposit for new accounts. | Colorado Department of Revenue |
Real-world examples
Home-based online seller
A home-based seller may not need a City Clerk business license unless the business fits a listed city license type. But they should check city sales tax, state sales tax, Colorado trade name rules, and the Home Occupation Permit. Online platforms do not replace city and state rules. For more help, see Home Occupation Permit Explained.
Mobile food truck
A food truck is a layered case. The city has a Mobile Food Vendor License for people selling or taking orders for food from or on the public right-of-way. The city page also lists county health, planning, sales tax, and state business document checks. For a broader checklist, see Food Truck Business License and Permit Guide.
Massage business or salon
A massage business appears on the city’s listed license types. A salon or personal service business may also need state DORA licensing. Before leasing space, check zoning, building permits, signs, fire review, state license rules, and sales tax if selling products.
Short-term rental host
A short-term rental host should not rely only on a booking platform. The city has permit rules, zoning limits, separate applications for each listing, and change notices. The host may also need city tax accounts and state or federal tax steps.
Common mistakes to avoid
- Calling every requirement a “business license.” In Colorado Springs, the item may be a City Clerk license, city tax license, state sales tax license, trade name, home occupation permit, or county food license.
- Assuming no City Clerk license means no local approval. Zoning, taxes, building, fire, food, signs, or special use rules may still apply.
- Signing a lease before checking zoning and building limits.
- Starting a home business before checking the Home Occupation Permit rules.
- Selling taxable items without checking both Colorado state tax and Colorado Springs city tax.
- Buying a food truck or restaurant equipment before county health review.
- Using a DBA name without filing the correct Colorado trade name.
- Trusting a paid ad or mailer that looks official. Use official city, county, state, and federal pages.
Phone and email scripts
Use these scripts as short notes when you contact an agency. Replace the bracketed words with your facts.
City Clerk business license script
Hello, I plan to operate a [business type] at [address or general area] in Colorado Springs. I am trying to confirm whether this business type needs a City Clerk business license. I saw the city list of licensed business types. Does my activity fit one of those categories, and which city page or application should I use?
Sales tax script
Hello, I will sell [products/services/rentals] to customers in Colorado Springs. Do I need a Colorado Springs Sales and Use Tax License, and do I also need a Colorado state sales tax license? If my activity is not taxable, where can I get that confirmed in writing or through the official portal?
Planning and zoning script
Hello, I want to operate a [home-based / storefront / mobile / short-term rental] business at [address]. Is this use allowed at that location? Do I need a Home Occupation Permit, zoning verification, sign permit, short-term rental permit, building review, or another land use approval before I open?
Food business script
Hello, I plan to sell or serve [type of food] in Colorado Springs from [restaurant / truck / kiosk / booth / home / event]. Do I need a retail food license, plan review, inspection, commissary approval, or special event approval before I sell?
Keep a copy of the answer, the date, the office name, and the person or email that replied. Rules can depend on small facts.
What to do if this doesn’t work
If a portal is confusing, a link is broken, or two offices give different answers, write down the exact issue. Do not pay a random third-party site just because it appears first in search results.
- Start with the official page for the exact license, tax, or permit.
- Use the agency’s published email address when possible so you have a written record.
- Ask which office controls the next step. For example, zoning may come before a license, or health review may come before a mobile food approval.
- Ask whether the answer changes if the business is home-based, mobile, temporary, online, or inside city limits.
- If the issue affects money, lease terms, safety, tax, employees, or legal rights, talk with a qualified professional.
A compact compliance checklist
- Write down your exact business activity, location, and whether customers visit.
- Check the City Clerk license list for your business type.
- Check the city Sales and Use Tax License if you sell taxable goods, rentals, lodging, or other taxable items.
- Check zoning before signing a lease or using a home address.
- Check Home Occupation Permit rules if working from home.
- Check building, certificate of occupancy, fire, and sign rules before remodeling or opening.
- Check El Paso County Public Health before selling or serving food.
- Check the county Assessor if you own business equipment, furniture, machinery, signs, or other taxable personal property.
- File the Colorado entity or trade name steps that fit your business.
- Set up state tax, withholding, unemployment, workers’ compensation, and new hire accounts when they apply.
- Get an EIN from the IRS if your structure or hiring plan requires it.
Official resources
- Colorado Springs Business Licensing
- Colorado Springs Tax Applications & Returns
- Colorado Springs Sales Tax Online Services
- Colorado Springs Home Occupation Permit
- Colorado Springs Sign Applications
- Colorado Springs Short Term Rentals
- Colorado Springs Mobile Food Vendor License
- Colorado Springs Liquor and Beer Licensing
- Pikes Peak Regional Building Department
- El Paso County Retail Food Establishments
- El Paso County Business Personal Property
- Colorado Secretary of State Trade Names
- Colorado Sales Tax License
- IRS EIN
About BusinessLicenseGuide.com
BusinessLicenseGuide.com is a plain-English guide for small-business owners. We are not a government agency, law firm, CPA firm, filing service, or permit expeditor. We help readers know what to ask and where to confirm details.
FAQ
Does every Colorado Springs business need a city business license?
No. Colorado Springs says that, other than liquor and marijuana licensing, only the business types listed on the City Clerk business licensing page require a business license issued by the City Clerk’s Office. Other city, county, state, or federal steps may still apply.
Do I need a Colorado Springs Sales and Use Tax License?
You may need one if you are a retailer engaged in business in Colorado Springs and you collect city sales tax, lodgers’ tax, auto rental tax, motion picture theatre admissions tax, bicycle excise tax, or report city use tax. Confirm your activity with the City Sales Tax Division.
Can I run a business from my home in Colorado Springs?
Maybe, but you should check the city Home Occupation Permit rules first. The city lists limits on nuisance, outside employees, deliveries, signs, storage, and the area used for the home business.
Who handles food business permits in Colorado Springs?
El Paso County Public Health licenses and inspects retail food establishments in Colorado Springs. A food business may also need city sales tax, zoning, building, fire, or City Clerk approvals depending on the setup.
Is a Colorado trade name the same as an LLC?
No. The Colorado Secretary of State says a trade name is an assumed name used to identify a business or activity. A trade name is not a business entity and cannot be converted into an entity.
Should I check zoning before I sign a lease?
Yes. Zoning, building, certificate of occupancy, signs, fire review, and health permits can affect whether a location works for your business. Check before you sign or remodel.
Disclaimer
This article is informational only. It is not legal, tax, financial, insurance, employment, safety, zoning, licensing, or professional advice. Rules, fees, forms, links, offices, and policies can change. Confirm important details with the official agency or a qualified professional before you act. We do not guarantee approval, eligibility, compliance, savings, income, speed, or results.
Update notes
Last updated: April 29, 2026
Next review: August 29, 2026
This page was reviewed for city, county, state, and federal business licensing layers that may affect a Colorado Springs business owner.