Checked against official sources in November 2026. Fees change from time to time, so confirm the amount on the linked page before you pay.
Most small businesses in Colorado go through the same five steps. You can do almost all of it online, and the state fees are lower than many people expect. Forming an LLC costs $50.
1. Decide how your business will be set up
Most owners pick one of these two:
- Sole proprietor. You and the business are the same person for legal and tax purposes. You don’t file anything with the state, unless you use a business name that is different from your full legal name. In that case you file a Statement of Trade Name, which costs $20.
- LLC (limited liability company). The business becomes its own legal entity, which keeps its debts separate from yours. You file Articles of Organization ($50), then a Periodic Report every year ($25).
A corporation also costs $50 to file, but it comes with more paperwork. If you aren’t sure which fits you, the Colorado Small Business Development Center (SBDC) gives free one-on-one advice and can help you decide.
2. File with the Colorado Secretary of State
Filings are done online on the Secretary of State’s website. Before you start, search their business database to make sure no one else is using your name.
For an LLC you will need the business name, a principal office address and a registered agent. A registered agent is the person or company that receives legal mail for the business. It has to be someone 18 or older with a Colorado street address, and it can be you.
When the filing goes through, the state gives your business an ID number. Save it, because you’ll use it in the next steps.
After that, file the Periodic Report once a year, around the month you formed. If you miss it, the state marks the business as delinquent.
3. Get an EIN from the IRS
An EIN (Employer Identification Number) is your business’s federal tax number. You need one to hire employees or to run an LLC with more than one owner, and most banks ask for one to open a business account.
Apply on irs.gov. It is free and you get the number as soon as you finish. To apply online you need a Social Security number or an ITIN. Some websites charge to file it for you; you never have to pay for an EIN.
4. Get a sales tax license if you sell products
If you sell goods, you need a state sales tax license from the Colorado Department of Revenue. Apply through MyBizColorado.
The application fee is between $4 and $16, depending on when you apply in the state’s two-year license cycle. New accounts also pay a $50 deposit. The state returns the deposit on its own once you have collected and paid $50 in state sales tax.
If you only sell services, you may not need a license. The Department of Revenue’s sales tax guide explains what is taxed.
5. Check with your city
Some cities, including Denver, Aurora, Colorado Springs and Boulder, collect their own sales tax and have their own license. Many cities and counties also require a business license or permit for certain kinds of work, like food, childcare, construction or beauty services. Check your city’s website or call their licensing office before you open.
Free help
You don’t have to do this alone. The Colorado SBDC has free advisors around the state, and our Resource Hub lists more free programs for Colorado owners.
Once you’re set up, add your business to Biz Tiendita. It’s free.