Starting a Business FAQs

  1. Where should I begin when starting a business in Colorado?
    First, consult the Colorado Business Resource Book, a basic guide to starting a business in Colorado. The guide is customized to include the specific forms and licensing information for each individual business. If you still have questions, contact the Small Business Navigator at 303-592-5920. Once you have a basic idea about your business, contact the SBDC nearest you to schedule free one-on-one consulting services as well as referrals to various government sources of assistance that provide additional business consulting and economic development assistance.
  2. How do I get a state business license?
    The State of Colorado does not issue or require a generic general business license. Licenses are issued by various state agencies for specific types of business, activities and professions. Refer to the Occupational Licensing Database for more information.
  3. How do I register my business name or set up a legal structure?
    To verify if a name is already being used in Colorado, check the Secretary of State website. Corporations, Limited Liability Companies, sole proprietors, general partnerships and trade names register organizational paperwork with the Secretary of State (303-894-2200). Trade name registration with the Secretary of State does NOT establish exclusive rights. However, it is required when doing business under any name other than the first and last names of the owner(s)/organizer(s). For more information, refer to the Legal Structure chapter of the Colorado Business Resource Book.
  4. How do I get a state tax identification number?
    You can apply for a state tax identification number using the online form CR 100 – New Employer Registration.
  5. What is the sales tax rate in Colorado? The state sales tax rate in Colorado is 2.9%. However, sales tax is also collected for counties, cities and special districts. The exact sales tax rate is determined by adding the various rates that apply at the location where a sales transaction is completed. The state collects the majority of all sales taxes. However, there are 71 “home rule” cities that require separate licensing and directly collect their city’s portion of the sales tax on all sales made within their jurisdiction. For more information, click here. The Department of Revenue publishes the Colorado Sales/Use Tax Rates, DRP 1002, which lists the tax rates for all jurisdictions in Colorado. Publication DRP 0099, Colorado Sales and Use Tax and the Colorado Sales Tax chapter of the Colorado Business Resource Book are also available.
  6. Where do I obtain workers’ compensation insurance in Colorado?
    Workers’ compensation insurance is purchased through private insurance companies in Colorado. There is not a state fund. The Colorado Legislature created Pinnacol Assurance (303-361-4000), a non-profit insurance carrier, to sell workers’ comp. It is not, however, a state agency. Many new businesses frequently obtain their workers’ comp through Pinnacol; however, it not required that new business use Pinnacol. Businesses are encouraged to shop for the best rates and service as they would for any other form of insurance. Consult directories and speak with other business owners for references. For information regarding employer responsibilities to provide workers’ compensation insurance coverage, contact the Division of Workers’ Compensation (303-318-8700) or refer to the Employer Responsibilities chapter of the Colorado Business Resource Book.
  7. How much is the unemployment insurance tax in Colorado?
    For the majority of employers, the beginning base tax rate is 0.017 plus principle bond rate of 0.0038 for the combined rate of 0.0208 on the first $11,700 of each employee’s annual earnings. Those employers in construction-related businesses may be subject to a different tax base. For more information regarding unemployment insurance, contact the Unemployment Insurance Section (303-318-9100) or refer to the Employer Responsibilities chapter of the Colorado Business Resource Book.
  8. Where do I get a government grant to start a new business?
    Unfortunately, there are really no government grants – state or federal – available for starting a business. There are very specific targeted government grants but they rarely apply to start ups. These grants are called Small Business Innovative Research (SBIR) grants. SBIR grants are usually issued by a federal agency that is seeking research and development in specific areas including military weapons development, biotechnology and other high-tech fields. SBIR Colorado (303-427-1312 ext 201) is a non-profit organization that assists entrepreneurs, scientists and researchers identify SBIR grant opportunities.
  9. Where do I apply for a government loan?
    The vast majority of government loans programs – state and federal – are called guaranteed loans. To apply for these loans, a business owner contacts a bank or other financial institution which applies to the government for a guarantee on the loan. There are also other forms of private financing for business owners. The Financing Chapter of the Colorado Business Resource Book outlines many of these options. Before speaking to a bank or any seeking any other type of financing, a business owner should realize two important factors:
    1. It is very difficult to finance new businesses. The majority of financial resource for a new business will come from the personal assets of the owner and their family and friends. Banks and the government prefer to see a two or three year business history before making a loan, regardless of the age of a business. While this does not eliminate the possibility of financing, it makes the second factor even more important.
    2. A complete and well written business plan is critical to any type of financing. SBDC centers provide free one-on-one consulting to assist business owners in the writing of their business plan. The Business Plan Chapter of the Colorado Business Resource Book provides a basic outline for writing a business plan.
  10. Where do I get basic information about the quality of life and the cost of living in Colorado?
    The Colorado Office of Economic Development (303-892-3840) publishes the Colorado Data Book, which has a basic information guide regarding the State of Colorado as a whole. There are over 50 local economic development offices and more than 150 chambers of commerce that frequently provide more specific local information.

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Disadvantaged Business Enterprise Certification

Disadvantaged Business Enterprise (DBE) certification is a federally mandated process that ensures that only those firms meeting prescribed standards receive the distinction as a DBE. There is not a single all-encompassing certification program for women- and minority-owned business. Certification is only required if a business desires to sell products or services to a government agency or private firm that requires certification as part of their contracting process. There are three different types of certification, depending upon the type of contracting.

Federal Certification

U.S. Small Business Administration
721 19th Street, Suite 426
Denver, CO 80202
(303) 844-2607 ext 260

For more information on federal contracts, visit www.FedBizOpps.gov.

The 8(a) Program is intended to be used exclusively for business development purposes to help small businesses owned and controlled by socially and economically disadvantaged individuals. To apply, click here.

To apply for most federal opportunities, you will need to register with Central Contractor Registration (CCR), the primary registrant database for the U.S. Federal Government. Visit www.ccr.gov

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Colorado Unified Certification Program (UCP)

The Colorado UCP was established to facilitate statewide Disadvantaged Business Enterprise (DBE) certification. The UCP eliminates the need for DBE applicants to obtain certification from multiple agencies. The Colorado Department of Transportation (CDOT) and the City and County of Denver (CCD) are the certifying agencies for the Colorado UCP. CCD is the only certifying agency for Denver International Airport (DIA) Airport Concession DBEs (ACDBEs).

State Office of Certification
Colorado Department of Transportation
Civil Rights & Business Resource Center
4201 E. Arkansas, Room 150
Denver, CO 80222
Contact: Randy Liljenberg, Senior Certification Analyst
303-512-4140
[email protected]

The Colorado Department of Transportation (CDOT) Civil Rights & Business Resource Center (CRBRC) processes applications for Disadvantaged Business Enterprise (DBE) and Emerging Small Business (ESB). Program information and applications for the DBE and ESB can be found at: www.coloradodot.info/business

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ACCESSColorado

Learn how to do business with the State of Colorado in 3 steps. ACCESSColorado is a program of the State Purchasing Office that helps suppliers understand state procurement. Visit the State Purchasing Office’s website and download the guide to get you started. Interactive links are on the website that take you directly to the information you need. Visit ww.colorado.gov/dfp/access for more information.

David H. Musgrave
Supplier Diversity Liaison
State Purchasing Office

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City & County of Denver, Office of Economic Development
Division Small Business Opportunity

201 W Colfax, Dept 907
Denver, CO 80202
(720) 913-1999; FAX (720) 913-1809
[email protected]
http://www.denvergov.org/oed/DenverOfficeofEconomicDevelopment/BusinessServices/DoBusinesswiththeCity/tabid/435878/Default.aspx

The Division of Small Business Opportunity processes applications for multiple programs:

  • Small Business Enterprise (SBE) and Minority/Women Business Enterprise (M/WBE) for construction-related City & County of Denver contracts
  • Airport Concessionaire Disadvantaged Business Enterprise (ACDBE) and Small Business Enterprise Concessions (SBEC) for airport concession opportunities at the Denver International Airport
  • Disadvantaged Business Enterprise (DBE) for U.S. DOT federally-funded contracts in Colorado (including airport, highway and transit contracts)

Download and complete the application forms below, then mail or deliver with supporting documents to the Division of Small Business Opportunity (DSBO) at 201 West Colfax, Dept. 907, Denver, CO 80202. For questions call (720) 913-1999. For application forms, click here.

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Private Certifications

Certification from these agencies does not apply for government funded contracts, but may be used by private corporations.

Mountain Plains Minority Supplier Development Council (MPMSDC)
6025 South Quebec Street
Suite 135
Centennial, CO 80111
303-623-3037
[email protected]
www.mpmsdc.org

The Council’s Purpose:

  • Certify minority businesses
  • Provide Access to the goods and services of minority businesses to Corporate America
  • Promote lasting and mutually beneficial business relationships
  • MBE CERTIFICATION

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Women’s Business Enterprise Council – West (WBEC-West)

1515 N. Greenfield Rd.
Suite 102
Mesa, AZ 85205
(480) 969-9232
www.wbec-west.com

WBEC-West is a regional partner of the Women’s Business Enterprise National Council (WBENC) and is authorized to provide the WBENC and Women-Owned Small Business (WOSB) certification in eight states/regions.