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How to Start a Business in Colorado: What to Do After You File

2 min readStarting a business

A ribbon cutting in front of our building, with a crowd of local business owners and a South Metro Denver Chamber ribbon
A ribbon cutting at our Lone Tree campus.

To start a business in Colorado, file with the Secretary of State, get a free EIN from the IRS, register for state taxes, get your city business license and open a business bank account. Here is each step in the order to do it, with the fee and where to do it.

How to start a business in Colorado, step by step

  1. File with the Secretary of State. Forming an LLC costs $50 online. Each year you file a periodic report for $25, and a late filing adds a $50 penalty. A sole proprietorship does not need this filing.
  2. Get an EIN. The IRS issues it free at IRS.gov/EIN in one sitting. Sites that charge for one are selling something the IRS gives away.
  3. Register for state taxes. Use MyBizColorado. You need a sales tax license if you sell taxable goods or services from a Colorado location, and a wage withholding account if you pay wages. Sales tax licenses renew every two years and typically expire December 31 of odd-numbered years.
  4. Get your city or county business license. Fees and rules differ by town. Lone Tree lists a $10 business license with no renewal fee and a $15 sales and use tax license that renews every two years. Its page doesn’t say which one fits which business, so call the city’s licensing office at 720-509-1017 before you apply.
  5. Open a business bank account. Keep business and personal money apart from the first dollar, so your small business accounting starts clean.
  6. Set up how customers find you. Claim your Google Business Profile, which is free, and put up a simple website that names your service and your town.

If you hire your first employee

Registering through MyBizColorado also connects you to unemployment insurance with the Colorado Department of Labor and Employment. Colorado requires workers’ compensation insurance from the first employee, and paid family leave (FAMLI) has its own separate registration. Confirm the current rates with the state before you budget.

Free help for a new Colorado business

The Colorado Small Business Development Center network offers no-cost advising, which is worth a call before you spend money on a lawyer or consultant. If you want a second opinion on where to start, tell us the biggest problem you’re facing and we will say where we would begin.

We checked the state and city pages on October 30, 2026. Fees change, so confirm each one when you apply. Once you have customers and want more, read how to grow a small business.

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