The Complete Guide to Colorado Business Licenses
Colorado does not issue a general state business license. Licensing depends on what you sell and where: a state sales tax license if you sell taxable goods, separate licenses in Colorado's home-rule cities, and a professional license through DORA for regulated work.
Step 1: Form the LLC
File Articles of Organization online with the Colorado Secretary of State for $50 — approval is usually almost instant. Every LLC files a $25 periodic report each year in a five-month window around its anniversary month. See the Colorado LLC guide for every formation step.
Step 2: State sales tax license
If you sell taxable goods in Colorado, apply to the Colorado Department of Revenue for a sales tax license. It costs $16 per two-year period plus a refundable $50 deposit. The state rate is 2.9%, and counties, cities and special districts add their own rates.
Step 3: Home-rule city licenses
Colorado's home-rule cities — including Denver, Aurora, Colorado Springs, Boulder and many others — administer their own sales tax. If you sell in one of them, you usually need that city's sales tax license in addition to the state license, and many also require a general business license or occupational license. Non-home-rule cities generally collect sales tax through the state. Check every city where you will have a location or make deliveries.
Step 4: Professional licenses (DORA)
The Colorado Department of Regulatory Agencies (DORA) licenses many professions and trades — electricians, plumbers, real estate brokers, accountants, cosmetologists, nurses and more. General contractors are licensed locally by the city or county where they build, not by the state. Alcohol sales are licensed by the state Liquor Enforcement Division together with the local licensing authority.
Hiring staff
Employers register with the Department of Revenue for wage withholding and with the Colorado Department of Labor and Employment for unemployment insurance before the first payroll.
Checklist
| Registration | Agency | Cost |
|---|---|---|
| Articles of Organization | Secretary of State | $50; $25 periodic report |
| State sales tax license | Department of Revenue | $16 per two years + $50 refundable deposit |
| Home-rule city sales tax / business license | Denver, Aurora, Boulder and others | Set by each city |
| Professional or trade license | DORA (contractors: local) | Varies |
Frequently Asked Questions
Does Colorado require a business license?
Colorado has no general state business license. Sellers need a state sales tax license, home-rule cities issue their own licenses, and regulated professions are licensed by DORA.
How much is a Colorado sales tax license?
The state sales tax license costs $16 for each two-year period, plus a refundable $50 deposit.
Do I need a Denver business license?
Denver is a home-rule city that runs its own sales tax, so businesses selling in Denver usually need a Denver sales tax license in addition to the state license, plus any business license required for their activity.
How much does it cost to form an LLC in Colorado?
The Articles of Organization cost $50 online, and the periodic report is $25 a year.
Does a Colorado LLC need a business license?
Forming the LLC registers the company but is not a license to operate. The LLC still needs any state and city sales tax licenses and professional licenses its activity requires.