Colorado Business License: Who Needs One & How to Apply (2025)

What Is a Business License in Colorado?

A business license is a permit issued by a local, state, or federal body in order to allow businesses to perform a specific business activity and/or operate legitimately.

So, if there isn’t a “general business license” in Colorado, what exactly is there?

Well, Colorado — like the vast majority of states — imposes different requirements depending on where you’re located and what you actually do.

For example:

• A restaurant in Denver will need a Food Service Establishment License from the Denver Department of Public Health & Environment.
• A dispensary in Boulder will need a Retail Marijuana Store License from the Colorado Marijuana Enforcement Division and local approval from the City of Boulder.
• A construction contractor in Colorado Springs will need a license from the Pikes Peak Regional Building Department, potentially state registration through the Department of Regulatory Agencies for certain trades, and any required permits from Colorado Springs Utilities for work affecting utility connections.
• A home-based online boutique in Fort Collins will need a Home Occupation Permit from the City of Fort Collins Planning & Development Services.

Do I Need a Colorado Business License? 

Well, the answer to this will ultimately depend on your business’s situation. You can have a look at our table below in order to get a general idea:

Colorado Business Licensing at a Glance

Jurisdiction	Business Licenses	Who Needs It & Where to Apply
Local	Health Permits, Zoning Permits, Occupancy Certificates, Industry-Specific Permits, etc.	Varies by location. Contact your local municipality to determine local requirements.
State	Sales and Use Tax Permit	Businesses selling tangible goods or taxable services.  Apply via Colorado Department of Revenue.
	Professional Licenses	Required for regulated professions (e.g., electricians, real estate agents, cosmetologists, etc). Apply via the Department of Regulatory Agencies (DORA).
	Industry-Specific State Licenses	Businesses in regulated industries (e.g., food, environmental, health).  Apply through the relevant Colorado agency.
Federal	Industry-Specific Licenses	Businesses involved in federally regulated activities such as agriculture, aviation, firearms, alcohol, broadcasting, or wildlife. Apply through the relevant federal agency (e.g., USDA, FAA, ATF, FCC, FWS)

*While this table is meant to give you a general idea, it’s by no means exhaustive. For all your licensing needs, we suggest either going with a professional licensing service or consulting with a business attorney. 

How to Get a Business License in Colorado

The process of obtaining a business license in Colorado will depend on the permit in question, but generally involves completing the following steps:

1. Form a Business Structure & Obtain an EIN

We recommend formalizing your business before acquiring a business license in order to avoid potentially having to repeat this process again later down the line. 

This also gives other benefits depending on the business model, such as:

• Personal liability protection
• Improved legitimacy 
• Larger access to loans and corporate finance

Note: You should obtain an Employer Identification Number (EIN) after forming your LLC. You can have a look at our How to Get an EIN overview for more information. 

2. Apply for the Right Business License in Colorado

This step will depend on the business license in question.

Colorado Local Business Licenses

Many Colorado cities and counties require local business licenses or permits to be obtained. This can be in addition to the common state-wide licenses talked about above.

Here are some common local permits you may need:

• Industry Permits – Specific permits based on your business type, such as health permits for food service, fire department permits for public assembly spaces, or special event permits for venues (e.g., if your restaurant is based in Denver, you would apply for health permits at the Denver Department of Public Health & Environment).
• Zoning Permits – Required to ensure your business location complies with local land use regulations (e.g., if your business is based in Boulder, you would check requirements at the City of Boulder Planning & Development Services).
• Sign Permits – Required before installing business signage to ensure compliance with size, placement, and safety standards (e.g., if your business is based in Fort Collins, you would apply at Fort Collins Planning & Development Services).
• Certificate of Occupancy – Verifies that your building meets codes and is safe for business use (e.g., if your business is based in Colorado Springs, you would apply at the Pikes Peak Regional Building Department).
• Home-Based Business Permits – Required when operating from a residence to ensure neighborhood compatibility (e.g., if your business is based in Lakewood, you would apply at the City of Lakewood Planning Department).

To find your local county or city’s official contact information and licensing requirements, you can visit the Colorado Municipal League Directory.

Colorado State Business Licenses

Below we’ve included the most common business licenses that are required on a state level.

Colorado Sales Tax License

If your company has one business location in the state, you can apply for a Colorado sales tax license online, by mail, or in person. If you have more than one location, you must apply by mail or in person.

OPTION 1: Apply Online With MyBizColorado

Apply Online

– OR –

OPTION 2: Apply by Mail or in Person

Download Form

Fee: $50 deposit (refunded once the business has paid $50 in taxes)

Mailing Address:
Colorado Department of Revenue
Registration Center Section
P.O. Box 17087
Denver, CO 80217-0087

Office Addresses:
Lakewood Service Center
1881 Pierce St.
Lakewood, CO 80214

Colorado Springs Service Center
2447 N. Union Blvd
Colorado Springs, CO 80909

Pueblo Service Center
827 W. 4th St.
Pueblo, CO 81003

Grand Junction Service Center
222 S. 5th St., Room 208
Grand Junction, CO 81501

Fort Collins Service Center
3030 S. College Ave.
Fort Collins, CO 80525

Colorado Professional Licenses

If you’re interested in a professional license, you’ll need to head over to the relevant state commission, as this is not handled on a local level. We’ve provided the licensing boards of a few of the most common professions below to get you started:

• Division of Professions and Occupations: Oversees licensing for healthcare professionals including physicians, nurses, dentists, pharmacists, physical therapists, chiropractors, and mental health professionals.
• Division of Real Estate: Regulates real estate brokers, appraisers, mortgage loan originators, and conservation easement holders.
• Electrical Board: Handles licensing for electricians and electrical contractors operating in Colorado.
• State Board of Accountancy: Oversees the licensing and regulation of Certified Public Accountants (CPAs) and CPA firms.
• State Board of Licensure for Architects, Professional Engineers, and Professional Land Surveyors: Regulates the practice of architecture, engineering, and land surveying professions.racticing in Arkansas.

For more information on how to go about getting licensed, you can have a look at StateRequirement’s in-depth licensing guides. 

Industry-Specific State Licenses

Some Colorado businesses require additional licenses based on the specific industry they operate in.

Here are some common examples of industry-specific state licenses in Colorado:

• Liquor License: Required for businesses that manufacture, distribute, or sell alcoholic beverages. Regulated by the Liquor Enforcement Division. Colorado offers various license types including beer & wine, hotel & restaurant, and retail liquor store licenses.
• Motor Vehicle Dealer License: Required for businesses selling more than three vehicles per year. Regulated by the Auto Industry Division. Includes new and used car dealers, wholesalers, and powersports dealers.
• Child Care License: Required for facilities caring for five or more children under age 16 who are not related to the caregiver. Regulated by the Department of Early Childhood. Includes child care centers, family child care homes, and preschools.
• Cannabis License: Required for businesses involved in cultivating, manufacturing, testing, or selling marijuana products. Regulated by the Marijuana Enforcement Division. Includes licenses for retail stores, cultivation facilities, and product manufacturers.
• Food Manufacturer License: Required for businesses that process, package, or manufacture food products for wholesale distribution. Regulated by the Colorado Department of Public Health & Environment.
• Money Transmitter License: Required for businesses that transmit money or provide payment instruments. Regulated by the Division of Banking. Includes check cashing services and cryptocurrency exchanges.

Colorado Environmental Permits

If your business’s industry will mean that it could negatively impact the environment, there’s a good chance you’ll need some sort of license or permit from the Colorado Department of Public Health & Environment (CDPHE).

Examples of industries and activities requiring environmental permits include:

• Air Quality Permits: Required for facilities emitting air pollutants, including manufacturing plants, gas stations, dry cleaners, and auto body shops.
• Water Quality Discharge Permits: Businesses discharging wastewater or stormwater into state waters need Colorado Discharge Permit System (CDPS) permits.
• Underground Storage Tank Registration: Required for underground tanks storing petroleum or hazardous substances over 110 gallons.
• Hazardous Waste Generator ID: Businesses generating hazardous waste must obtain an EPA ID number based on monthly generation amounts.
• Stormwater Permits: Required for construction sites over one acre and industrial facilities with outdoor operations.
• Solid Waste Facility Permits: Required for landfills, transfer stations, composting facilities, and waste tire processors.
• Radiation Control Permits: Businesses using X-ray equipment or radioactive materials need registration or licensing.
• Water Well Permits: Required before drilling any water well for commercial, industrial, or irrigation use.

Federal Business Licenses for Colorado LLCs

If your business is in a federally regulated industry (which is uncommon), it’ll need to acquire the appropriate business license from the right body before starting to operate. 

A full list of industries regulated at a federal level can be found below:

• Agriculture: Overseen by the U.S. Department of Agriculture
• Alcoholic Beverages: Overseen by the Alcohol and Tobacco Tax and Trade Bureau and the Local Alcohol Beverage Control Board
• Aviation: Overseen by the Federal Aviation Administration. 
• Firearms, Ammunitions, and Explosives: Overseen by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
• Fish and Wildlife: Overseen by the U.S. Fish and Wildlife Service.
• Commercial Fishing: Overseen by the National Oceanic and Atmospheric Administration Fisheries Service.
• Maritime Transportation: Overseen by the Federal Maritime Commission.
• Mining and Drilling: Overseen by the Bureau of Safety and Environmental Enforcement.
• Radio and Television Broadcasting: Overseen by the Federal Communications Commission.
• Transportation and Logistics: Overseen by the U.S. Department of Transportation

Colorado Business License Renewal

Depending on your business license, you may need to renew it periodically — usually within one or two years.

Your Colorado Sales Tax License must be renewed every two years. The renewal fee is $16 for each physical location.

Renewal is also required for practically all professional licenses and many local permits, including:

• Health department permits for food establishments (annually)
• Professional licenses like real estate, contractors, electricians (typically every 1-2 years with continuing education requirements)
• Liquor licenses (renewed annually through the State Licensing Authority)
• Cannabis licenses (renewed annually through the Marijuana Enforcement Division)
• Motor vehicle dealer licenses (annually)
• Child care licenses (typically every 2 years)

Having said that, renewal requirements will ultimately depend on both your location and the specific license in question. As a result, we recommend always checking with your issuing agency for the specific renewal timelines and requirements that will apply to you.

Colorado Business License FAQs

Quick Links

• Colorado Department of Revenue – Sales Tax
• Colorado Business Resource Portal
• Department of Regulatory Agencies (DORA)
• Colorado Municipal League Directory
• Colorado Counties Inc.