Obtaining a Colorado Business License—A Complete Guide

Starting a new business in Colorado requires obtaining certain necessary licenses and permits to operate legally in the state. Depending on your location and the industry or activities involved, three types of Colorado business licenses may apply to your company.

This article will guide you through each step of obtaining your business license in Colorado, helping you meet all necessary compliance standards efficiently. Additionally, we’ll present Harbor Compliance, a trusted partner in business licensing, which offers a simple and stress-free way to help you meet all your licensing requirements.

Do You Need a Business License in Colorado?

The state of Colorado doesn’t require businesses to obtain general business licenses. However, specific licenses may still be required if your business operates within a profession, occupation, or industry regulated by the State of Colorado.

The Colorado Department of Regulatory Agencies (DORA) provides Colorado's licenses, registrations, and permits for certain business types. You can search their database to see if your business falls under the state regulation.

A few sectors regulated by DORA include:

• Banking
• Real estate
• Architecture
• Medicine
• Engineering
• Land Surveying

When Do You Need a Colorado Business License?

While general licensing doesn’t apply at the state level in Colorado, you may need a business license if your business is in an industry regulated by DORA. Also, the type of licenses you need to procure depends on many factors, including the city or county of operation, the specific activities, and the level of regulation within your industry.

For example, to operate a construction business in Boulder County, you may need the following permits:

1. Building Contractor License
2. Electrical Contractor License
3. Fire Contractor License

Do You Need a Business License to Sell Online in Colorado?

As of April 2022, businesses with limited or no physical presence are no longer required to apply for a local business license in their jurisdiction, provided they have a state retail license and engage in retail sales. Instead, their local city or county will automatically issue them a local business license (with effect from July 2023).

Moreover, if a business only sells on marketplaces, such as Amazon, Etsy, or eBay, the marketplace will collect and remit sales and use tax. So, online businesses won’t have to worry about getting licensed, calculating, or sending in the taxes themselves.

Types of Business Licenses in Colorado

In Colorado, businesses may need at least one business license or permit to comply with state or local regulations. The specific license requirements depend on your business type, location, and industry, as different rules apply at the local, county, state, and even federal levels.

Here are three main types of business licenses you need to obtain in Colorado:

1. Sales and Use Tax License

This license is essential for most businesses operating within the state and is issued by the Colorado Department of Revenue. In other states, it’s also referred to as a vendor’s license, reseller’s license, or resale certificate.

Generally, three categories of licenses are issued under sales and use tax licenses:

1. Standard retail license—Issued to businesses with a retail sales counter or a permanent store location. It applies to both retail and wholesale businesses. So, if a business engages in both, they don’t need to get separate licenses.
2. Wholesale license—Applies to businesses that sell goods to other licensed vendors rather than directly to consumers.
3. Special event license—Meant for businesses conducting single or multiple events from a temporary location.

2. Local Permits

These are additional permits that you may need within your county or city, depending on the location and nature of your business. For example, you may need an occupancy permit, even for home-based businesses, which could require a home occupation permit. If your business involves new construction or renovations, a building permit from the city or county planning department may be necessary.

3. State-Regulated Licenses

DORA regulates various industries and occupations at the state level and issues and renews business licenses with assistance from various boards and commissions.

For example, if you are setting up as an “Athletic Trainer” in the state, then you will require a license authorized by the Office of Athletic Trainer Licensure. The office’s responsibilities include issuing registrations to athletic trainers, investigating complaints, and enforcing any disciplinary actions determined by the Division Director.

How To Get a Business License in Colorado

To apply for a business license in Colorado, you need to register your business with the Colorado secretary of state’s office by filing online.

Once your business is registered, the next crucial step is to explore the various licensing requirements at the federal, state, county, or local levels. Depending on the nature of your business, you may need to obtain specific licenses through DORA. In addition to state-level licenses, you must also secure licenses issued by local city or county offices.

Here’s a step-by-step explanation of how to get your business license at each level:

1. Obtain state-level business licenses.
2. Fill out Form CR 0100 to get a sales tax license.
3. Apply for local licenses and permits within your city or county.

State-Level Business License

The state-level licensure is regulated by DORA and other agencies. They have issued the licensing requirements for different industries and occupations operating in the state of Colorado.

Here’s what the application process looks like:

1. Determine if your business is required to obtain a license issued by DORA. You may need a license if you operate in one of the industries listed on their website.
2. Fill out the necessary application for your business type, providing all required documentation.
3. If you don’t find your industry or occupation on the list, you can refer to the list of additional state regulatory services that are regulated by the sister agencies of DORA.
4. Select the correct regulated entity and click the “Apply For/Renew a License” link in the appropriate row.

Local-Level Business License

Local-level license requirements vary between cities and counties. Follow the below steps to ensure compliance with your local authorities:

1. Review your local county or city website or contact city hall to get the necessary licensing information.
2. Based on the licenses applicable to your business, contact the appropriate department and fill out the application form.

Colorado Sales Tax License

In Colorado, sales tax requirements do not apply to services but to tangible personal property. Here’s how the process goes:

1. Go to the Colorado Department of Revenue website and download Form CR 0100.
2. Fill in information, such as organization type, Federal Employer Identification Number (FEIN), Social Security number (SSN), business address, owner information, sales tax accounts, etc.
3. Submit the form and pay the fee.

Navigating the business licensing process often involves a steep learning curve. You’ll need to thoroughly research your industry’s specific licensing requirements, gather necessary documentation, and ensure that all forms are filled out correctly and submitted within tight deadlines.

This approach can be time-consuming and stressful, especially for entrepreneurs who are already juggling the demands of running a business. This is where partnering with a service provider that handles the complexities of business licensing and tax requirements can be beneficial.

How Harbor Compliance Makes Colorado Business Licensing Effortless

Harbor Compliance’s Managed Annual License Service offers a hassle-free solution for staying compliant while you focus on growing your business.

Here’s how we can make business licensing less overwhelming for you:

• Tailored licensing solutions—Our team evaluates your business needs and provides personalized guidance to ensure you have all the necessary licenses to operate in Colorado.
• License filing and renewal support—From your first application to routine renewals, we handle every step, ensuring timely preparation and submission of all required documents.
• Access to our compliance software—Stay on top of your licensing effortlessly with our intuitive License Manager software. Get real-time updates, track renewal deadlines, and manage your licenses with ease—all in one convenient platform.

How To Partner With Harbor Compliance

To order our Managed Annual License Service, follow these steps:

1. Visit our Business Licensing Service page.
2. Select Order Online to get started.
3. Complete the form with your business details.
4. Submit your order by clicking Checkout.
5. Our team will update you as soon as your filings are processed.

Additional Services by Harbor Compliance

In addition to business licensing, we offer a comprehensive suite of services to help your organization comply with various entity and tax requirements. Explore the table below for more details:

Colorado Business License FAQs

We’ve gathered answers to some of the most frequently asked questions about obtaining a Colorado business license. For additional information, explore our Information Center.

Harbor Compliance: Your Reliable Partner for Colorado Business License Solutions

Handling business licensing can be challenging and time-consuming. Why do it yourself when you can partner with Harbor Compliance to take on the heavy lifting? Our Managed Annual License Service is designed to simplify your licensing journey, so you can concentrate on what really matters—growing your business.

Want to check your company’s regulatory standing with the state? Try our FREE Harbor Compliance Score™ for an instant overview. You can contact us or schedule a demo if you want to learn more about our services.

Additionally, if you’re looking for information on business licensing requirements and processes across the U.S., explore the table below: