Does an LLC Need a Business License in Colorado?
If you’ve recently formed an LLC in Colorado, you may be wondering whether you need to obtain a business license. In Colorado, there is no statewide requirement that LLCs must get a business license other than registering the business with the Secretary of State. However, you may need to obtain local business licenses and industry-specific permits depending on your industry and the location of your LLC.
Business licensing requirements in Colorado and the process of getting a license can be highly complex. There are many factors which impact whether you need a license as well as the type(s) of license your LLC needs. The following overview will provide you with some basic information as you begin your research, but it’s important to work with an experienced start-up business lawyer who can help ensure you comply with all licensing requirements and complete the process properly.
Types of Business Licenses in Colorado
Many Colorado-based businesses must hold at least one type of license to legally operate in their local area. The type of license(s) you will need will largely depend on the local and county regulations where you reside. In certain industries, businesses may need to obtain state and/or federal business licenses as well. This is more common for businesses in heavily regulated industries such as alcohol or cannabis. This variability is why it’s critical that you work with a business formation lawyer who knows the proper licenses associated with your industry.
In general, there are two different types of state-level business licenses:
- General Business License
- Occupational License
General Business License
A general business license refers to a license that all businesses operating in a particular state must have, regardless of their industry. Colorado doesn’t require a general business license, so your LLC will not need to obtain one. However, you may need an occupational license or a local (municipal) license depending on the type of business you operate and the city/county requirements in your place of business.
Occupational License
Occupational licenses may be required for businesses in certain industries. Some examples of businesses that may need an occupational license include hair salons, daycare centers or used car dealerships. Occupational licenses may be needed through the State, the city you operate in, the county you operate in, or a mixture of them. Your small business lawyer will be able to advise you as to whether you need an occupational license to operate your LLC business in Colorado.
Other Types of Business Licenses in Colorado
There are other types of business licenses that may be required based on your location and type of business. Some of the most common include:
- Municipal Business License
- Colorado Sales Tax License
Municipal business licenses are issued by the city, town or county where your LLC does business. Each municipality in Colorado has a different set of rules governing which types of businesses need a license. Your business start-up lawyer will know the municipal business license requirements associated with your LLC.
There are two types of municipal business licenses:
- General Business License – If a general business license is required, every business operating in that municipality must obtain a license to operate.
- Industry-Specific License – In some municipalities, a license is only required for certain industries. You may or may not need one depending on what your business does.
A Colorado sales tax license may be required if your business sells products to consumers. In these situations, you may also need to register your LLC with the Department of Revenue.
Federal Business License Requirements
Most Colorado small businesses won’t be required to get a federal business license unless you conduct activities that are regulated on the federal level. The following industries are examples of some of the industries that may require a federal business license:
- Agriculture
- Alcohol sales, serving, importing or distribution
- Aviation
- Firearms, ammunition and explosives
- Fish and wildlife
- Commercial fisheries
- Maritime transportation
- Mining and drilling
- Nuclear energy
- Radio and TV broadcasting
- Transportation
How to Get a Business License in Colorado
If your LLC needs a business license in Colorado, you’ll need to apply for one with the appropriate licensing or regulatory agency. The agency governing your business license will depend on the location of your business and your specific industry. As part of the business license application, you will generally need to provide the following basic information:
- Business/LLC/Corporation name
- Employer Identification Number (EIN)
- Business address and phone number
- Business plan containing your anticipated expenses and revenue
- Certificate of insurance (COI) for your business insurance policy
Once you’ve gathered this information, you can fill out the required forms on the licensing agency’s website to apply for your license. Your business formation attorney will be able to help you with this process to ensure the application is completed correctly.
Elizabeth Lewis Can Help if You Need a Business License for Your LLC
Whether you know for certain that your LLC needs a business license or you need to find out whether any licenses are required, the Law Office of E.C. Lewis can help. Elizabeth Lewis is a Colorado small business attorney with extensive experience assisting new businesses with a wide range of items associated with the business formation process. She can advise you as to whether you need a license and if so, which license(s) your business must obtain. Elizabeth can also help you with the application process to ensure everything goes smoothly.
The Law Office of E.C. Lewis has been providing comprehensive legal services for businesses in Denver and throughout Colorado since 2010. She can help you with a wide range of legal needs, including business formation tasks, contract law matters, employment law issues and more. Elizabeth is committed to providing your business with the highly personalized attention and sound legal guidance necessary to protect your interests and set you up for long-term success.
Contact us today to schedule a consultation. The Law Office of E.C. Lewis serves small and medium-sized businesses in Denver and throughout Colorado.