By Photo: Wusel007 / Wikimedia Commons, CC BY-SA 3.0
Starting a business in Larimer County involves state, county and sometimes city paperwork, and the order matters. Here is a checklist for a typical small business, with the public offices that handle each step. Fees and forms change, so confirm the details with each office before you file.
1. Choose a structure and register with the state
Most small businesses form a limited liability company or a corporation, or operate as a sole proprietor. LLCs and corporations register online with the Colorado Secretary of State, which charges a filing fee. A sole proprietor who uses any name other than his or her own legal name must register a trade name with the Secretary of State. Entities must file a periodic report each year to stay in good standing.
2. Get a federal employer identification number
An EIN from the Internal Revenue Service is free and is needed to open a business bank account, hire employees and file most business tax returns.
3. Register for state taxes
If you sell taxable goods, you need a Colorado sales tax license from the Colorado Department of Revenue. Employers must also register for state income tax withholding and for unemployment insurance with the Colorado Department of Labor and Employment.
4. Check your city
This is the step new owners most often miss. Fort Collins and Loveland are home-rule cities that collect their own sales tax, so a business in either city needs a city sales tax license in addition to the state license. Many other towns in the county have their state-collected local taxes handled through the Department of Revenue. Each city also has its own zoning rules, sign permits and, for some trades, business or contractor licenses.
5. Zoning and building permits
Before signing a lease, confirm with the city or, outside city limits, with Larimer County’s planning department that your use is allowed at that address. Restaurants and food businesses also need health permits from the Larimer County Department of Health and Environment.
6. Free help
- The Larimer Small Business Development Center, part of the Colorado SBDC network, offers free one-on-one consulting and low-cost classes on business plans, financing and marketing.
- SCORE volunteer mentors meet with business owners at no cost.
- The Colorado Office of Economic Development and International Trade lists state programs, grants and loans for small businesses.
- Local chambers of commerce and the region’s libraries offer networking events and business research databases.
7. Insurance and records
Talk with an insurance agent about general liability coverage, and, if you hire employees, workers’ compensation, which Colorado requires for most employers. Keep business and personal finances separate from day one.
For the household side of taxes, see our guide to Colorado and Wyoming taxes compared.
Sources
- Colorado Secretary of State, business registration.
- Colorado Department of Revenue, sales tax licensing.
- City of Fort Collins and City of Loveland, sales tax licensing.
- Larimer Small Business Development Center; Colorado SBDC Network.
- Colorado Department of Labor and Employment.
