How to Get a Business License in Colorado

Step 1: Register the business with the Colorado Secretary of State if needed

The Colorado Secretary of State handles business entity records. This includes many LLCs, corporations, nonprofits, partnerships, foreign entities, and trade names.

You can search business names, file a form to create a new record, file a form for an existing record, and validate certificates through the Secretary of State business services pages. The state also lists MyBizColorado as an official filing tool for the State of Colorado.

When this applies

• You are forming a Colorado LLC, corporation, nonprofit, limited partnership, or other filing entity.
• You are a foreign entity that needs authority to transact business in Colorado.
• You are a sole proprietor or general partnership using a trade name.
• You need to update, maintain, or file periodic reports for an existing Colorado business record.

What this does not do

A Secretary of State filing creates or maintains a state business record. It does not automatically give zoning approval, a city business license, a sales tax account, a health permit, a liquor license, or a professional license.

Trade names and DBAs in Colorado

Colorado uses the term “trade name” for many DBA-style filings. The Secretary of State says a for-profit business not using the entity’s true name, or an individual not using their legal first and last name to conduct business in Colorado, is required to file a trade name.

For example, if Maria Lopez runs a sole proprietorship as “Front Range Mobile Notary,” the trade name issue is separate from whether she also needs a city license, tax account, or professional registration.

Trade name filing is not the same as trademark protection

A Colorado trade name filing creates a state record. It does not automatically give federal trademark rights. If the name is important to your brand, check the Colorado Secretary of State trademark information and the U.S. Patent and Trademark Office.

Step 2: Check Colorado tax accounts and sales tax licensing

Colorado tax setup is one of the most important parts of this process. The name of the account depends on what your business does.

Colorado sales tax license fees and deposit

As of the last check for this guide, the Colorado Department of Revenue listed Standard Retail License fees that vary by when the license is applied for in the two-year cycle. CDOR also listed a $50 sales tax deposit for new accounts, refundable after the business collects and pays $50 in state sales taxes. Always confirm the current fee and deposit on the official CDOR page before applying.

Home-rule cities can change the tax picture

Colorado’s home-rule city system is a common source of mistakes. CDOR says state sales tax licenses cover state and state-collected tax jurisdictions only. If you are in a home-rule city, contact that city for its license requirements.

CDOR also says home-rule cities must be contacted directly when sales are made within their jurisdictions and that they require businesses to have a local sales tax license. Some home-rule cities participate in SUTS. Others may still have their own city filing portal.

Step 3: If you hire workers, set up employer accounts

Hiring employees adds a separate set of requirements. Handle these before payroll starts.

• Federal EIN: The IRS says businesses generally need an EIN to hire employees, operate a partnership or corporation, pay certain taxes, or change business structures. Get it directly from the IRS.
• Colorado wage withholding: If you must withhold Colorado income tax, CDOR says you must apply as a withholding tax agent. This is a Colorado wage withholding tax account, not a general business registration.
• Unemployment insurance: CDLE says employers paying wages to at least one employee in Colorado may need to register for an unemployment account. Colorado uses MyUI Employer+ for UI employer account management.
• Workers’ compensation: CDLE says all businesses with employees operating in Colorado must have workers’ compensation insurance, with limited exceptions.
• New hire reporting: Colorado uses a New Hire Reporting Employer Services Portal for reporting new hires and rehires.
• FAMLI: Colorado’s paid family and medical leave program may create employer payroll obligations. Check CDLE and the My FAMLI+ Employer portal if you have employees.

Step 4: Check city, county, zoning, and home-based rules

Local rules are often the step that trips people up in Colorado. A state filing may be complete, but the city or county may still control whether your business can operate at a specific address.

If you have a storefront, office, warehouse, salon, studio, or restaurant

Before signing a lease, ask the city or county planning office whether your use is allowed at that address. You may also need building permits, fire review, a sign permit, a certificate of occupancy, or a local business license.

If you run the business from home

Home-based businesses usually need a zoning check. Denver says home occupations are intended to be secondary to the home’s main use as a dwelling and may be limited by size, employees, signage, and hours. Colorado Springs has a Home Occupation Permit process and tells applicants to check building, fire, and sales tax issues before applying. County rules may apply if the address is outside city limits.

If you sell food

Food businesses often involve both state and local review. CDPHE says it licenses and inspects restaurants, mobile food units, and grocery or convenience stores only in certain counties. In other counties, contact the local public health agency. Cottage food businesses should check Colorado’s Cottage Foods Act and any local rules before selling.

If you operate online only

An online business may still need Colorado tax registration, a trade name, local zoning approval for a home office, or local licensing if inventory, employees, pickups, deliveries, or regulated services are tied to a Colorado location.

Step 5: Check industry-specific Colorado licenses

Some Colorado businesses need a state license or permit because of the work they do. This is separate from entity filing and local licensing.

Colorado city links and local starting points

Local licensing varies by city. Start with the official city page for your address. If a BusinessLicenseGuide city guide already exists, it is included here as a plain-English next step.

Official Colorado agency directory

Use these official pages to verify the exact requirement for your business.

• Colorado Secretary of State Business Services — business entity filings, business search, trade names, certificates, and periodic reports.
• MyBizColorado — official state filing tool for registering and managing many business filings.
• Colorado Department of Revenue business tax resources — sales tax, withholding, Revenue Online, and business tax tools.
• Colorado Sales and Use Tax System — sales tax filing for state, state-collected, and participating home-rule jurisdictions.
• Colorado GIS sales tax lookup — address-based sales tax rate and jurisdiction lookup.
• CDLE starting a business employer page — unemployment account registration guidance for employers.
• Colorado Division of Workers’ Compensation — workers’ compensation insurance requirements.
• Colorado Department of Regulatory Agencies licensing and permitting — professional and business licenses regulated by DORA divisions.
• Colorado Division of Professions and Occupations — professional and occupational license programs.
• CDPHE food safety and licensing — retail food, manufactured food, cottage food, and related food safety programs.
• Colorado Department of Revenue Specialized Business Group — liquor, tobacco, marijuana, auto industry, gaming, racing, and other specialized licensing programs.
• Colorado Department of Agriculture licensing — agricultural, pesticide, pet facility, and related programs.
• IRS EIN information — federal employer identification number information.
• U.S. Small Business Administration licenses and permits — federal license and permit categories.