How to Open a Movie Rental Store in Colorado

Opening a movie rental store in Colorado takes several steps.

DVD-by-mail, online streaming and cable "on demand' movie services make movie rental stores difficult to run profitably. Before you open your movie rental store, think about ways to differentiate your business. You can specialize in a particular niche, like foreign film or hard-to-find independent films. You could also have a delivery or mail-in service. Once you have a business plan and are confident you can be successful, you must follow a number of steps to open your business in Colorado.

Instructions

1. Register your business with the Colorado Secretary of State. Sole proprietorships and partnerships must file a trade name registration. Limited liability companies and corporations need to file corporate registrations. You can file all the necessary forms online at the secretary of state's website.

2. File IRS Form SS-4 to obtain your employer identification number. You also need to file form CR0100 with the Colorado department of revenue. This registers you for withholding and sales tax collection.

3. Call your local city hall to check if any additional local permits or tax certifications are required.

4. Open a business checking account and merchant account. A merchant account will allow you to process credit and debit cards. Visit your local bank and talk to their business banking specialist to open these accounts.

5. Lease a space that is zoned for commercial use. Try to pick a store that is in a high traffic area, is visible and easy to get to. Contact a commercial real estate agent to help you find a suitable location.

6. Stock your movie rental store with DVDs and Blu-rays. You should purchase these from a movie wholesale distributor rather than retail store. You also need to purchase point of sale equipment and software so you can process transactions. Consider installing TVs around the store that will continually play movies.

7. Market your rental store aggressively. Advertise in local publications and consider buying online ads. Install a large, easily visible sign on your store. Offer promotions to attract new customers.

Tips & Warnings

• Although not required, liability as well as fire and premises insurance are recommended.

• Unless you paid Colorado sales tax when you purchased your DVDs and Blu-rays, you must collect sales tax on their rentals.

References

• Colorado Secretary of State: Conducting Business in the State of Colorado
• Colorado Department of Revenue: Sales Tax License
• Colorado Office of Economic Development and International Trade: Business License Database