Business License Cost in Colorado (2026): Varies by City
Colorado Sales Tax License. Local fees $10–$75/year. 1–3 business days to process.
Colorado does not require a general state business license. If you sell taxable products, a Colorado Sales Tax License costs $16 (one-time, no renewal). Most cities — including Denver ($25–$500/year) and Boulder ($75/year) — require separate local business licenses. The state registration at sos.colorado.gov is separate from licensing and costs $1–$50.
State License Fee
N/A
No state license required
Local License Fee
$10–$75
city/county, per year
Processing Time
1+
business days
Colorado Business License: Key Facts
| License Name | Colorado Sales Tax License |
| Issued By | Colorado department of revenue |
| State Fee | None (local fees apply) |
| Local Fee Range | $10–$75/year |
| Renewal | No Renewal |
| Processing Time | 1–3 business days |
| State Income Tax | Yes |
What You Need to Apply
Before applying for a business license in Colorado, have these ready:
- ✓ Business name and structure — whether you're a sole proprietor, LLC, or corporation changes which forms you file
- ✓ EIN (Employer Identification Number) — free from IRS.gov, required for most licenses
- ✓ Business address — physical location in Colorado or a registered agent address
- ✓ Business description and NAICS code — the license fee may depend on your business category
- ✓ Payment method — credit card or check for the license fee
Colorado-Specific Licensing Note
Colorado has no general state business license. Businesses selling taxable goods need a Sales Tax License ($16, no renewal fee). Local business licenses are required in most cities.
Also Starting a Colorado LLC?
Forming a Colorado LLC costs $50 in state filing fees and takes 1–3 business days. Business licenses and LLC formation are separate — you'll need both to legally operate.
How to Form a Colorado LLC →Professional and Industry-Specific Licenses
A general business license isn't the only license you may need. Most regulated professions require separate state-issued licenses regardless of your general business license status:
Frequently Asked Questions
How much does a business license cost in Colorado?
Colorado does not require a general state business license. If you sell taxable products, a Colorado Sales Tax License costs $16 (one-time, no renewal). Most cities — including Denver ($25–$500/year) and Boulder ($75/year) — require separate local business licenses. The state registration at sos.colorado.gov is separate from licensing and costs $1–$50.
Do I need a business license in Colorado?
Yes. Colorado requires businesses to obtain a Colorado Sales Tax License before operating. Colorado has no general state business license. Businesses selling taxable goods need a Sales Tax License ($16, no renewal fee). Local business licenses are required in most cities.
How do I get a business license in Colorado?
Apply for a Colorado Sales Tax License through the Colorado Department of Revenue. Processing takes 1–3 business days in most cases. You'll need your business name, entity type, EIN, and physical address before applying.
What is the difference between a business license and an LLC in Colorado?
An LLC (Limited Liability Company) is a legal business structure registered with the Secretary of State — it gives you liability protection and separates personal and business assets, costing $50 in Colorado. A business license is an operating permit from your state or local government that allows you to legally conduct business in that jurisdiction. Most small business owners need both.
Plan Your Business Costs
Business licenses are one piece of your startup budget. Use these calculators to plan the rest:
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