How to Obtain a Small Business License in Colorado
To operate a small business in Colorado, you need to register your business with the state and obtain the appropriate tax licenses from the state. Certain cities and counties require additional tax and business licenses. The state of Colorado doesn't issue separate business licenses for all small businesses, but state law requires that certain professions such as massage therapists and electricians pass state licensing exams.
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Instructions
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Search the business name database to verify that another business doesn't exist with your business name. Go to the Business Center of the Colorado government website, and choose Search Business Database from the choices in the left hand column on the page.
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Obtain a Federal Employee Identification Number for the Internal Revenue Service. You'll need this number to fill out the Colorado State forms. Call 1-800-829-4933 between 8 a.m. and 10 p.m. Eastern Time to register on the phone and receive your FEIN immediately.
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Determine if your business needs a special license for your profession. Call the Small Business Hotline at 303-592-5920 to determine is your profession requires a special license. You will need to pay a fee and submit an application for this special license. Some licenses involve criminal background checks.
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Register your business name with the Colorado Secretary of State. In the Business Center of the Colorado government website, indicate that you want to file a Statement of Trade Name. You may file online or by mail. There is no fee to file this document.
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Complete Form CR0100 to register your business if you will have sales or employees. This form will generate both your state identification number --- which you will use to pay any sales or use tax due to the state --- and a withholding account into which you'll deposit any state taxes you withhold from employees' wages. You'll submit the form along with the required fees to the Colorado Department of Revenue. You'll also need to open an unemployment insurance account with the Colorado Department of Labor and Employment. There is no fee for opening an unemployment insurance account.
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Contact your local municipality's tax office to find out if they require a business license and/or tax license. You may need to pay a fee and renew these licenses annually.
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