The only bookmark you need if you ever want to start a business in Colorado.
Colorado is home to over 50,000 small businesses, which employ 1 million people – nearly half of the State’s workforce. Interestingly, nearly all private businesses (97.6%) in Colorado are considered small businesses.
Aimco, Coors, Frontier Airlines, Envision Healthcare, Arrow Electronics, Dish Network, Newmont Mining, Western Union, CH2M Hill
Currently, Colorado ranks as the fourth-highest state nationwide for the amount invested in local companies. Denver’s maturing tech scene may shortly be in for a considerable boom, and cost of living in Colorado generally costs less than other states. Additionally, Boulder and Denver between them offer considerable startup resources, and the opportunity to raise a great deal of capital.
There are 3 basic options: a DBA, a Corporation or an LLC. Click here to learn more about business entities.
Picking a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that, the better).
Each state has it’s own requirements for registering a business. Now that you’ve chosen a business structure and picked your business name, here are the requirements to register your business in Colorado.
Our formation package includes everything you need to get started
Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.
You can read more about corporate tax laws in Colorado on the Colorado Department of Revenue Taxation Division site.
TIP: We will obtain your EIN for you if you we form your company.
To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork b) your EIN c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).
TIP: Our business formation service includes a free banking resolution for your use.
Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).
Tip: We work with a company that can obtain and prepare business licenses and permits for you. Click here to learn more.
DBA: Your Fictitious Business Name should be valid for 5 years (unless you change company name or other information listed on the FBN) at which point you’ll need to renew it with the county.
LLC: Colorado corporations are required to file a Periodic Report with the Colorado Secretary of State each year, in addition to general taxation. Information on your business’ taxes can be found here. This report is due on the last day of the second month following the anniversary of the date the LLC was formed. Depending on the nature of your business, you may also need to periodically renew operating permits.
Corporation: Your business must keep corporate records at its principal place of business. Every year, an officer of your corporation must file an annual report on or before the last day of the second month following the anniversary of the date you were incorporated. LLCs and Corporations will pay a filing cost of $10.
Wow loved it thankyou! I dreaded making this for a month thinking it would be a hassle. It wasn't thanks to you guys!
Excellent in all aspects. Perfect for new business owners with limited resources but wants to start it off right.
IMPORTANT: We are open and have resources for small businesses to get help with Covid19!