Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Written By Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Staff Reviewer Rob Watts Managing Editor, SMBWith over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.
Rob Watts Managing Editor, SMBWith over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.
Rob Watts Managing Editor, SMBWith over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.
Rob Watts Managing Editor, SMBWith over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.
| Managing Editor, SMB
Updated: Feb 12, 2024, 11:40pm
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Businesses must have insurance, file taxes appropriately and may be required to obtain licenses from the city, county, state or federal governments. A business license is an official document governing how your company operates in the state. It certifies that a company meets state standards for conducting business and it allows your company to operate legally in the state.
The process of obtaining a Colorado business license is complex and requires steps on both the local and state levels, which may be confusing for new entrepreneurs unfamiliar with the process. In this guide, you’ll learn how to get a Colorado business license in just a few steps.
The state of Colorado does not require or issue a statewide generic business operating license. This being said, certain state regulatory agencies may issue specific licenses for certain kinds of businesses or professions. The only statewide licensing requirement applied to businesses of all industries where sales tax is levied is the “sales tax license,” sometimes also called a seller’s permit.
Most Colorado cities and counties will require businesses to obtain a general business operating license, though each city will have different rules or restrictions. For example, the city of Aurora requires any business operating within city limits to obtain a business license, while former libertarian paradise, Colorado Springs, only requires business licensing for a specific set of businesses including concrete contractors, bicycle-sharing, tree services, food trucks and any “sexually oriented businesses.”
We encourage business owners to research the specific license regulations in the relevant cities of business operation to ensure compliance with all city or county laws. Any business based in multiple cities or counties across Colorado will need to establish the appropriate business licensing for each location—even though said licensing may be drastically different.
Practically all businesses based in Colorado will need at least one type of license or permit to legally operate within the state. Unfortunately, figuring out exactly which license(s) you may be required to have to do business in your area or your specific industry can be confusing. The type of business you operate will determine which local, county, state and/or federal business licenses you need to obtain. You’ll need to check with your city hall or county clerk regarding local licenses and the Colorado Department of Regulatory Agencies (DORA) website regarding any statewide regulatory licenses.
The most essential type of business license you will need is a general business operating license, often called simply a “business license” or a “general license.” In some Colorado cities, these may be called City Sales and Use Tax licenses. Some cities and counties will require every business to obtain a business license while others may only require specifically regulated businesses such as those dealing in liquor, beer or marijuana, operating as contractors, auto parts and mechanics or others. For a full list, contact your local city or county clerk. Many cities and counties have lists on their websites but some digging around may be required.
Additional permits or licenses may be required on a city or county level when starting your business in Colorado. Depending on the location of your business, you may need an occupancy permit and even home-based businesses may require a home occupation permit. A building permit may be needed from the city or county planning department if any new construction or renovations are done. Some municipalities will also require a signage permit before adding any signs to your business.
Finally, your local health department may have specific requirements if your business is serving food or providing accommodations. This may be in addition to statewide licensing you must obtain for food service or public accommodations.
These permits are not the same or included in a business license, so you should research to see which, if any, you may need before starting your business.
All businesses in Colorado are required to obtain a sales tax license, sometimes referred to as a seller’s permit, if engaged in business in Colorado and intending to sell or lease tangible property that would ordinarily be subject to sales tax. If your business is not located in Colorado but does more than $100,000 in annual sales in Colorado, you must register your business for a sales tax license as an out-of-state retailer.
If your business will be selling liquor or buying or selling wholesale you will need to contact the Department of Revenue. You will also need a license from the Department of Regulatory Agencies if you are part of one of over 50 different professions regulated on the state level. To learn more about what the Department of Regulatory Agencies regulates, visit DORA’s website where you can identify if your business must obtain a license through it.
