City business license guide
Last updated: October 9, 2026
Starting a business in Colorado Springs can feel hard because rules come from more than one office. The city handles listed business licenses, city sales tax, zoning, signs, short-term rentals, and some permits. El Paso County handles many food and business personal property matters. Colorado handles state filings, tax accounts, employer duties, and professional licenses.
Bottom line
Colorado Springs does not have one general city business license for every business. The city says that, apart from its separate liquor/beer and marijuana paths, only the business types listed by the City Clerk need a City Clerk business license. Those listed categories include activities such as concrete contracting, massage businesses, mobile food vending, pawnbroking, pedal-cabs, security, tree service, and excavation.
That does not mean you can skip local checks. Depending on what you do and where you operate, you may still need a Colorado Springs Sales and Use Tax License, zoning or Home Occupation approval, sign approval, a short-term rental permit, building or fire review, county health approval, state tax accounts, a Colorado trade name or entity filing, employer registrations, or a state professional license.
Quick start: what to check first
- Check whether your business type appears on the city’s Business Licensing page. If it does, use the page for that exact license.
- Use the city’s Permit Partner and current zoning tools for your exact address before signing a lease or changing a property.
- If you sell taxable goods, rentals, lodging, or other taxable items, check both the city’s Tax Applications & Returns page and Colorado state sales-tax requirements.
- If you work from home, check the Home Occupation Permit rules.
- If you sell or serve food, check El Paso County Public Health before buying equipment or setting an opening date.
- File the Colorado entity, trade-name, tax, and employer steps that actually fit your business.
Colorado Springs business changes: April 1–October 1, 2026
- Colorado retail sales-tax license fee: for a new Standard Retail License whose start date falls from July through December 2026, the state application fee is now $12. New accounts also have a $50 deposit. The fee was $16 for January through June 2026, so this amount changed inside this review period.
- Large construction permits: Colorado SB26-093 took effect May 29, 2026. For a building or construction permit with total construction cost over $1 million, the applicant must file the required workers’ compensation coverage declaration with the permitting agency before work starts. This is a construction-permit rule, not a general filing for every small business.
- City business-license code transition: On September 22, 2026, City Council took final action on Ordinance 26-52, Ordinance 26-53, and Ordinance 26-54, which restructure portions of Chapter 2 business-licensing rules. As of the October 1 review, the public Business Licensing page still showed pre-update license labels, so this guide does not assume the code package is fully reflected in public forms or classifications yet. Start from the current City Clerk page for the activity you actually operate.
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 handles only the license types listed on its Business Licensing page. Businesses not listed may still need tax, zoning, building, health, professional, or other approvals. Liquor/beer and marijuana use separate city-and-state paths shown there.
Because the city modernized its business-license code in September 2026, start from the current City Clerk page for your exact activity rather than an old form, code citation, or saved checklist.
City Sales and Use Tax License
Colorado Springs is a home-rule city and collects its own 3.07% city sales and use tax. Its current rate page shows an 8.20% combined rate when the 2.90% state, 1.23% El Paso County, and 1.00% PPRTA rates are included. Confirm the rate and jurisdiction for the transaction before collecting tax.
The city says its Sales and Use Tax License covers 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. It expires every odd year on December 31. Applications, returns, and account work use the city’s GenTax-powered online tax path.
Zoning, city limits, home business, signs, and short-term rentals
Check the exact property before signing a lease. Use current SpringsView or Permit Partner to research the address and zoning. Do not rely only on a mailing address, landlord description, or old SpringsView bookmark.
The city lists a $120 non-refundable Home Occupation Permit application fee and says an approved permit does not renew, although moving requires a new application. Rules also cover nuisance, employees, deliveries, signs, storage, and business area.
Colorado SB24-134 limits private HOA restrictions. Since August 7, 2024, a unit owners’ association may not flatly prohibit a qualifying home-based business in a common-interest community. Reasonable HOA rules can still address architecture, parking, landscaping, noise, nuisance, and similar impacts. City zoning and Home Occupation rules still apply.
Colorado Springs rewrote its sign provisions before this review period: Ordinance 26-01 became effective March 9, 2026. The current Sign Applications page routes new signs and the separate public-right-of-way permit path.
The city’s Short Term Rentals page says each listing needs a separate annual permit. The posted fee is $124.95 per listing, with extra rules depending on owner-occupied or non-owner-occupied status.
Building, certificate of occupancy, and fire review
For building, remodeling, equipment, or use changes, start with the Pikes Peak Regional Building Department. Its Address Search shows permits and, for a single address, Certificate of Occupancy information. Planning or fire review can also apply depending on the use, building, equipment, and hazards.
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 covers restaurants, mobile units, kiosks, stores, bars, and other food operations. Check the health path before signing a lease, buying a truck, remodeling, or choosing equipment.
Temporary food vendors use a separate special-event path. The county says they need a valid El Paso County Public Health Special Event License and should submit the required material at least 10 days before the event.
Colorado HB25-1295 took effect January 1, 2026 and created statewide health-license and qualifying fire-permit reciprocity for mobile food establishments. It does not erase Colorado Springs’ Mobile Food Vendor License when the city definition applies, including selling from or to people on the public right-of-way.
Business personal property tax
The El Paso County Assessor says business personal property can include furniture, equipment, machinery, security devices, signs, and other income-producing movable items. The current declaration threshold is total actual value greater than $56,000. This is property tax, not a business license.
Colorado state requirements
Entity filing and trade name
Colorado filings are separate from city licensing. MyBizColorado is an official starting point, and the Secretary of State’s File a Form page routes LLC, corporation, trade-name, and other filings.
A Colorado trade name is a DBA-style assumed name, not an LLC or other legal entity. See Business License vs LLC vs DBA vs Seller’s Permit.
State sales tax and withholding
A Colorado Springs seller can need both a state sales tax license and the separate city Sales and Use Tax License. The Standard Retail License fee is $12 for July through December 2026. A new account also requires a $50 deposit, refunded after the business has collected and paid $50 in state sales tax.
If you pay wages that require Colorado withholding, use the Withholding Accounts page or MyBizColorado to open the state account.
Employees, workers’ compensation, and professional licenses
Hiring can also trigger unemployment insurance, workers’ compensation, FAMLI, and new-hire reporting. CDLE’s Starting a Business page routes unemployment registration; Colorado New Hire Reporting is a separate reporting path.
Under SB26-093, effective May 29, 2026, an applicant for a building or construction permit with total construction cost over $1 million must file the required workers’ compensation coverage declaration before work starts under that permit.
For regulated work, check DORA’s Division of Professions and Occupations before selling services.
Coming January 1, 2027: cottage food expansion
Colorado HB26-1033 was signed in June 2026. Key Cottage Foods Act amendments, including expanded food categories and producer registration, take effect January 1, 2027. Until then, use current rules and recheck CDPHE guidance before relying on the new provisions.
Federal requirements
Many businesses need an EIN, or federal tax ID. Use the IRS Get an EIN page rather than a paid lookalike site.
FinCEN finalized its BOI reporting rule in August 2026. The practical exemption for domestic U.S. companies already existed under the 2025 interim rule, and the final rule now makes that exemption permanent. U.S. companies are exempt from BOI reporting; certain foreign companies registered to do business in the United States can still have reporting duties. Use FinCEN’s current BOI page instead of older filing instructions.
Costs you can plan for
Do not build a budget from guesses. The amounts below are tied to specific official license or permit pages and can change.
| Item | Posted cost or note | Where to confirm |
|---|---|---|
| Most City Clerk business licenses | Most are $110 annually; check the exact license page. | City Clerk Business Licensing |
| Late renewal for most City Clerk licenses | Usually 50% of the license fee in addition to the license fee. | City Clerk Business Licensing |
| Background check for private security officers and several other licenses | Additional $7. | City Clerk Business Licensing |
| City Sales and Use Tax License | The city says applications and renewals are online only and there is no license or renewal fee. | City Sales Tax Division |
| Home Occupation Permit | $120 non-refundable application fee. | Planning and Development |
| Short-term rental permit | $124.95 annually for each listing. | Short Term Rentals |
| Mobile Food Vendor License | $110 first unit; $25 each additional unit; $55 late renewal; $5 duplicate. | City Clerk Mobile Food Vendor |
| Colorado Standard Retail License | For July–December 2026, $12 for one location, plus a $50 deposit for a new account. | Colorado Department of Revenue |
Real-world examples
Home-based online seller
A home seller may not need a City Clerk license unless the activity fits a listed category. But city and state sales tax, trade-name rules, zoning, and Home Occupation approval may still matter. HOA rules remain relevant, but state law limits blanket bans. See Home Occupation Permit Explained.
Mobile food truck
A truck can face city, county, and state layers. Colorado Springs has its Mobile Food Vendor License; El Paso County Public Health handles food licensing locally; and Colorado’s 2026 law added health-license and qualifying fire-permit reciprocity. Reciprocity does not replace every city license, tax, zoning, or location rule. See our Food Truck Business License and Permit Guide.
Massage business or salon
A massage business appears on the city license list. Massage therapists and many salon professionals may also have DORA requirements. Check zoning, building, signs, fire, state licensing, and sales tax on product sales.
Short-term rental host
The city requires a separate annual permit for each listing. Zoning, insurance, city tax accounts, and other tax steps can also apply.
Common mistakes to avoid
- Calling every requirement a “business license” instead of identifying the exact license, tax account, trade name, zoning approval, or permit.
- Assuming no City Clerk license means no local approval. Tax, zoning, building, fire, food, signs, or other rules may still apply.
- Using only a postal address to decide jurisdiction instead of checking the exact parcel and zoning.
- Signing a lease before checking zoning, building, occupancy, and health issues.
- Using old SpringsView or sign-code bookmarks.
- Treating statewide mobile-food reciprocity as a universal city-license exemption.
- Stopping after payroll withholding when unemployment, workers’ compensation, new-hire reporting, or FAMLI may also apply.
- Trusting a paid ad or mailer that looks official.
Phone and email scripts
Replace the bracketed words with your facts.
City Clerk business license script
Hello, I plan to operate a [business type] at [address or area] in Colorado Springs. Does my activity fit a City Clerk license category, and which current application should I use?
Sales tax script
Hello, I will sell [products/services/rentals] in Colorado Springs. Do I need a city Sales and Use Tax License, a Colorado state sales tax license, or both for these transactions?
Planning and zoning script
Hello, I want to operate a [home-based / storefront / mobile / short-term rental] business at [address]. Is this use allowed there, and which zoning, home occupation, sign, occupancy, building, or other land-use approval applies?
Food business script
Hello, I plan to sell or serve [food] from a [restaurant / truck / kiosk / booth / home / event]. Which retail-food, plan-review, inspection, commissary, or special-event path applies?
Keep the written answer, date, office, and responder. Small facts can change the route.
What to do if this doesn’t work
If a portal is confusing, a link is broken, or two offices disagree, write down the exact issue and start from the official page for that license, tax, permit, or property. Ask which office controls the next step and whether home-based, mobile, temporary, online, or city-limit status changes the answer.
Keep written agency replies when possible. Do not pay a random third-party filing site just because it appears first in search results.
A compact compliance checklist
- Write down your exact business activity, address, and whether customers visit.
- Confirm city jurisdiction and zoning with current SpringsView or Permit Partner.
- Check the City Clerk license list for your business type.
- Check city and Colorado sales-tax licensing if you make taxable sales.
- Check Home Occupation 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, including temporary events.
- Check the county Assessor if you own taxable business personal property.
- File the Colorado entity or trade name that fits your setup.
- If hiring, set up withholding, unemployment, workers’ compensation, new-hire reporting, FAMLI, and other employer steps that apply.
- Get an EIN from the IRS if required for your structure or hiring plan.
Official resources
- Colorado Springs Business Licensing
- Colorado Springs Permit Partner
- Current SpringsView map
- 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
- PPRBD permit and Certificate of Occupancy address search
- El Paso County Retail Food Establishments and special events
- El Paso County Business Personal Property
- Colorado Secretary of State File a Form
- Colorado Standard Retail License
- Colorado Withholding Accounts
- Colorado employer and unemployment starting point
- Colorado New Hire Reporting
- Colorado professional licensing
- Colorado SB26-093 workers’ compensation permit verification
- Colorado HB25-1295 mobile food operations
- Colorado SB24-134 home-based businesses and HOAs
- Colorado HB26-1033 cottage foods
- IRS EIN
- FinCEN BOI
- Colorado Springs Sales Tax
- Colorado Secretary of State Trade Name FAQs
- Colorado Sales Tax License application guidance
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.
Related business license guides
Start with the closest next-step guides, then explore other BLG location and licensing resources.
Best next guides
Explore more BLG guides
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 check the city Home Occupation Permit rules first. The city lists limits on nuisance, employees, deliveries, signs, storage, and business area. Colorado law also prevents a unit owners’ association from flatly prohibiting a qualifying home-based business, although reasonable HOA rules on parking, noise, nuisance, architecture, landscaping, and similar impacts may still apply.
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.
Update note
Last updated: October 9, 2026
Next review: January 7, 2027
This review rechecked the city license list, city sales tax, zoning and home occupation, current SpringsView and Permit Partner paths, signs, short-term rentals, PPRBD occupancy lookup, food and mobile-food rules, business personal property, Colorado filing and tax routes, employer duties, professional licensing, EIN, and BOI. It also adds the in-window state sales-license fee change and large-construction workers’ compensation declaration, flags the September city business-license code transition, and corrects older home-business, sign-code, and mobile-food context.
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.