So you want to start a business in Colorado? Whether you’re a native or a transplant, there’s no time like the present. Here’s what you need to know to get started.
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Decide on the business structure
When starting a business in Colorado, you need to decide on the business structure. This includes sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each business structure has different benefits and drawbacks. You need to choose the one that is best for your business.
Sole proprietorships are businesses that are owned and operated by one person. They are the simplest and most common type of business structure. Partnerships are businesses that are owned and operated by two or more people. Limited liability companies (LLCs) are businesses that have limited liability for the owners. Corporations are businesses that have legal rights and responsibilities that are separate from the owners.
Once you have decided on the business structure, you need to choose a name for your business. The name of your business should be unique and should not be confused with another business. You also need to register your business with the Colorado Secretary of State’s office.
After you have registered your business, you need to get a Business License from the Colorado Department of Revenue’s Office of Business Licensing section. You will need to fill out an application and pay the required fees.
You also need to get a Sales Tax License from the Department of Revenue’s Sales Tax Division if you will be selling taxable goods or services in Colorado. You will need to fill out an application and pay the required fees.
If you will be hiring employees, you will need to get an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). You can apply for an EIN online, by fax, or by mail.
You also need to obtain any other licenses or permits that may be required for your business, such as a food handler’s license or a card dealer’s license.
Choose a business name
You’ll need to choose a name for your business before you can do anything else. The name you choose will be used on all of your marketing materials, so it’s important to choose something you love. You can use your own name, or come up with something creative. Once you’ve decided on a name, you’ll need to check to make sure it’s available in Colorado.
If you want to use a name that’s already taken, you can file a fictitious name application with the Colorado Secretary of State. This will allow you to use the name for your business as long as you include the legal notice in any advertising materials.
You may also want to register your business name as a trademark. This will give you exclusive rights to use the name in Colorado, and can help prevent other businesses from using it.
Get a business license
You will need to get a business license from the City of Denver. You can do this by going to the City of Denver website and searching for “business license.”
Get a seller’s permit
If you will be selling any type of product in Colorado, you will need to obtain a seller’s permit from the Department of Revenue. This permit will allow you to collect and remit sales tax on the products that you sell. You can apply for a seller’s permit online or through the mail.
Register with the Colorado Department of Revenue
To start a business in Colorado, you must first register with the Colorado Department of Revenue. You will need to provide your business name, address, and contact information, as well as the type of business you will be operating. You will also need to provide a brief description of your business. Once you have registered with the Department of Revenue, you will be able to apply for a Business License.
Obtain the necessary business insurance
Before you can open your doors for business in Colorado, you will need to obtain the necessary business insurance. The type and amount of insurance you will need will vary depending on the size and type of business you are starting. However, all businesses in Colorado are required to have workers’ compensation and unemployment insurance. You can obtain these types of insurance through the Colorado Department of Labor and Employment.
Create a business plan
Creating a business plan is one of the most important steps you will take because the plan serves as your road map for the early stages of your business. The business plan generally projects 3-5 years ahead and outlines the route a company intends to take to reach its yearly milestones, including revenue projections. A well thought out business plan serves as a guide that can keep you on track and make sure you are hitting all of your milestones.
Open a business bank account
A business bank account helps you stay legally compliant and protected. When your personal and business accounts are mixed, your personal assets are at risk in the event your business is sued.
You’ll need to deposit money into your account to cover start-up costs and ongoing expenses, so be sure to open an account with a bank that meets your needs. Look for a bank that doesn’t charge monthly fees, offers free online banking and bill pay, and has a network of ATMs you can use for free. You may also want to consider whether you want a business credit card to help you manage cash flow or earn rewards on business expenses.
Once you’ve chosen a bank, you’ll need to provide them with some basic information about your business, including your:
-EIN (Employer Identification Number)
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