How to Get a Business License in Colorado (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

Colorado has no single statewide general business license. Instead, most businesses need a state sales tax license from the Department of Revenue - $16 for a two-year period plus a refundable $50 deposit - if they sell taxable goods, plus any local city or county license and any profession-specific license. What you need depends on what you sell and where you operate.

Colorado Has No General State Business License

Unlike some states, Colorado does not issue a single, all-purpose "business license" at the state level. There is no one form that authorizes a company to operate generally. Instead, Colorado's licensing is layered: a state sales tax license for sellers of goods, local licenses from cities and counties, and profession-specific licenses for regulated trades. Whether you need each layer depends on your activity and location. Forming your LLC does not, by itself, license you to operate - see how to form an LLC in Colorado for that separate step.

This layered model trips up many new owners who expect a single "get your business license" button. In practice, the right question is not "do I need the Colorado business license?" but "which of these three layers applies to what I actually do?" A freelance writer working from home may need none of them; a boutique selling clothing needs the state sales tax license plus, in a home-rule city, a local one; a licensed electrician needs a state trade license on top of everything else. Mapping your specific activity and address against the three layers is the whole task, and it is usually quick once you know the layers exist.

The State Sales Tax License

The closest thing to a required state license for most retailers is the sales tax license from the Colorado Department of Revenue. If your LLC sells tangible goods - or taxable services - in Colorado, you must hold this license before making sales and then collect and remit state sales tax. The standard retail license costs $16 for a two-year period, plus a one-time refundable $50 deposit. You apply using Form CR 0100, the Colorado Sales Tax and Withholding Account Application. The $50 deposit is returned automatically once your business has collected and remitted $50 in state sales tax.

A few details save headaches. The license must be in place before your first taxable sale, not after, because you are collecting the state's money in trust from day one. Each physical location needs its own license and its own $16 fee, though a single deposit generally covers the business. If you only sell online or at occasional events, Colorado also offers license types suited to remote and mobile sellers, so match the license to how you actually sell. Once licensed, you file sales tax returns on the schedule the Department of Revenue assigns based on your volume - monthly, quarterly, or annually - even for periods with no sales, until you formally close the account.

License Period and Renewal

Colorado issues sales tax licenses for a fixed two-year statewide period rather than a rolling anniversary. All standard licenses share the same period, so every business renews on the same cycle. When the current period ends, you renew for another $16 per location; the $50 deposit is a one-time charge, not a per-renewal fee. Watch the Department of Revenue's renewal notices so you do not sell on an expired license, which can trigger penalties on the tax you should have been collecting under the state licensing rules.

Local City and County Licenses

Many Colorado municipalities require their own local business license, and Colorado is notable for its home-rule cities - places like Denver, Colorado Springs, Boulder, and Aurora that administer and collect their own sales tax separately from the state. In a home-rule city you may need both a state sales tax license and a city sales/use tax license, each with its own fee and renewal. Requirements and costs vary widely by locality, so check with your city and county clerk for the exact license and fee that apply to your address and activity.

Home-rule status is a genuinely important Colorado wrinkle. In a state-collected jurisdiction, you file and remit sales tax only to the Department of Revenue, which then distributes local shares. In a self-collecting home-rule city, you may register, file, and pay separately to that city on its own forms and schedule - meaning two sets of filings for the same sale. Dozens of Colorado municipalities self-collect, so a business that ships to customers across the Front Range can owe returns to several jurisdictions. If you sell into multiple cities, confirm each city's rules early; the compliance work, not the license fee, is usually the bigger burden.

Other Common Registrations

Beyond licenses, a few registrations often accompany a new Colorado business. If you hire employees, you open a wage-withholding account with the Department of Revenue (it uses the same Form CR 0100 as the sales tax license) and register with the Colorado Department of Labor and Employment for unemployment insurance. If you operate under a public name different from your LLC's legal name, you register a trade name (DBA) with the Secretary of State. And every employer and most multi-member LLCs need a federal EIN from the IRS first, because state accounts reference it. None of these is a "business license" in the general sense, but together they form the compliance baseline most operating Colorado LLCs reach.

Profession-Specific and Regulated Licenses

Certain occupations need a state professional or occupational license regardless of the general rules above. Many are administered by the Colorado Department of Regulatory Agencies (DORA) - for example, contractors, cosmetologists, real-estate professionals, accountants, and health-care providers. Regulated industries such as alcohol, cannabis, and childcare have their own state licensing regimes with separate applications and fees. If your business is in a regulated field, that license is required in addition to any sales tax or local license, and operating without it can carry significant penalties.

The safest approach is to check your specific occupation directly with its licensing board before you start taking clients or money. Professional licenses usually require proof of education, exams, insurance, or bonding, and processing can take weeks - far longer than the instant sales tax license or LLC formation. Building that lead time into your launch plan avoids a gap where the entity exists but you are not yet legally allowed to perform the regulated work. When a profession is regulated, the license is not optional and cannot be substituted by the sales tax license or a local permit.

How to Get the Right Licenses, Step by Step

1. Form your entity first. Record your Articles of Organization with the Secretary of State so your Colorado LLC legally exists, then get a federal EIN.
2. Apply for the state sales tax license on Form CR 0100 if you sell taxable goods, paying the $16 license fee and $50 deposit to the Department of Revenue.
3. Check your city and county for a local business or sales/use tax license, especially in home-rule jurisdictions, and pay any local fee.
4. Obtain any professional license from the relevant state board or DORA if your occupation is regulated.
5. Track renewals for each license and keep them current alongside your annual Periodic Report.

Putting It Together: Typical Cost

For a typical Colorado retail LLC, the licensing cost is modest: $16 for the state sales tax license plus the refundable $50 deposit, on top of the $50 formation fee and the $25 annual Periodic Report. A service-only business that sells nothing taxable may need no state sales tax license at all, only a local license if its city requires one. Because local and professional fees vary, budget for them separately. For the full cost stack, see Colorado LLC cost and the national business license overview.

Frequently Asked Questions

Does Colorado require a business license?

Colorado has no single statewide general business license. Whether you need one depends on what you sell and where. Most sellers of goods need a state sales tax license, and many cities and counties require their own local license.

How much is a Colorado sales tax license?

A standard retail sales tax license costs $16 for a two-year period, plus a one-time $50 deposit. The deposit is refunded automatically after the business remits $50 in state sales tax. You apply on Form CR 0100.

Where do I get a business license in Colorado?

The state sales tax license comes from the Colorado Department of Revenue. Local licenses come from your city or county clerk. Profession-specific licenses come from the relevant state board, often under the Department of Regulatory Agencies (DORA).

Do I need a sales tax license if I only sell services?

Usually not, because most services are not subject to Colorado sales tax. If you sell tangible goods or taxable services, you need the license. Check the Colorado Sales Tax Guide or your local jurisdiction, since home-rule cities set their own rules.

Does an LLC need a business license in Colorado?

Forming an LLC and getting a license are separate steps. Your LLC exists once the Secretary of State records the Articles of Organization, but you still need any sales tax license, local license, or professional license your activity requires.

Related

• Business license (cluster hub)
• How to form an LLC in Colorado
• Colorado LLC cost
• Colorado Periodic Report and taxes
• Colorado registered agent requirements
• How to dissolve an LLC in Colorado
• How to get an EIN
• What is a DBA?
• What is an LLC?

Sources

1. Colorado Department of Revenue - Standard Retail License ($16 two-year license; $50 deposit).
2. Colorado Department of Revenue - How to Apply for a Sales Tax License (Form CR 0100).
3. Colorado Department of Revenue - Renew Your Sales Tax License (two-year period; renewal fee).
4. Colorado Department of Revenue - Sales Tax Guide (what is taxable; home-rule cities).
5. Colorado Department of Revenue - Business Income Tax.
6. Colorado Department of Regulatory Agencies - Division of Professions and Occupations (professional licensing).
7. Colorado Secretary of State - Business Division FAQs (formation vs. licensing).
8. Colorado Secretary of State - Business Home (Articles of Organization).
9. IRS - Get an Employer Identification Number (free EIN).
10. IRS - Limited Liability Company (LLC).
11. Colorado Revised Statutes - § 39-26-103, Licenses (state sales tax license requirement for retailers).
12. U.S. Small Business Administration - Apply for licenses and permits.

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the Colorado Department of Revenue, your local jurisdiction, and any relevant licensing board before acting.