Checklist for Starting a Business in Colorado Every new business must follow a specific set of rules and regulations to ensure compliance with the Federal government and the State of Colorado. Use this checklist to guide you through the process and avoid making costly mistakes. Business Name: Length of time in Business: Is your business feasible?
Conduct market study including focus groups and/or surveys a. Show how the demand will be enough to be profitable. b. Who are your competitors? c. Why will customers buy from you instead of your competitors? Write a business plan or outline Develop a financial plan a. Start up costs b. Monthly costs c. Profit and Loss and Cash Flow projections d. Possible Lenders
Choose legal type of business when you register the business:
Sole Proprietor Limited Liability Company (LLC) S Corporation Other (General Partnership, Limited Partnership, Nonprofit Organization, etc.)
Do a name search to make sure no one else is using this business name
For sole proprietors and general partnerships, go to www.businesstax.state.co.us for “Trade Name Search” or call the Colorado Department of Revenue at 303.238.3278 For corporations and other types of businesses, go in person or mail a request: Secretary of State 1560 Broadway, Suite 200, Denver, CO 80202 For name searches via fax, call 303.869.4864, Cost $25
Obtain sales tax license:
Online information and forms are available from the Colorado Department of Revenue: www.revenue.state.co.us/main/home.asp or call 303.238.3278
A document outlining all of the rules and regulations for Colorado sales tax licenses can be found at www.revenue.state.co.us/fyi/html/sales09.html
Choose a Location for the business
Research a good location with 1. Colorado Department of Transportation 4201 E. Arkansas Ave., West Annex, Room A-100 Denver, CO 80222 303.757.9488 www.dot.state.co.us 2. 3. US Census Bureau 303.969.6750 Colorado State Data Center 303.866.4147
Determine local zoning, sign, and building regulations 1. Contact your local City or County Zoning and Planning Administer 2. Get a permit for a home-based business if applicable. 3. Check neighborhood home-owner associations for any covenants which may apply.
Register with the State of Colorado
For sole proprietorships and general partnerships, will you do business under your own name or another business name? Own name—no registration required Another business name: Will you sell tangible products? Yes No Will you have employees? Yes No If you answer yes to either of these questions, you need to fill out form CR100, “Colorado Business Registration.” This form will allow you to register your business and get a state/county sales tax license. If you answer No to bother questions, register using form DR0592, “Trade Name Registration.” Get forms by phone, internet, mail, or in person. Fill out and return them to the Colorado Department of Revenue 303.238.3278 (Colorado Department of Revenue) 303.592.5920 (Colorado Department of Revenue) Or www.taxcolorado.com
Colorado Department of Revenue 1375 Sherman Street Denver, CO 80261 For corporations, LLCs, and other types of partnerships, register with the Colorado Secretary of State: Colorado Secretary of State 1560 Broadway, Suite 200 Denver, CO 80202 303.894.2200 www.sos.state.co.us
Register with the IRS
For sole proprietors, no registration is required All other types of business must obtain a Federal Employer Identification Number, also known as a federal tax ID number. • Get form SS-4 from any of the following sources: IRS: www.irs.gov, under forms 303.592.5920 (Colorado Small Business Hotline) • Return the form any of the following ways” Mail to: IRS EIN Operation, Philadelphia, PA 19255 Fax to: 1.215.516.3990 Or call: Tele-tin at 1.866.816.2065
Obtain all State Licenses and Permits pertaining to your Business
Visit the State of Colorado website to obtain permit information by industry: http://www.colorado.gov/colorado/permits.html Contact your local Small Business Development Center: Denver Small Business Development Center 1445 Market Street Denver, CO 80303 303.620.8076
Will your business have employees?
You must open federal, state, and local wage withholding and payroll tax accounts File form CR100 with the Colorado Department of Revenue File form SS-4, Application for Employer Identification Number with the IRS, by mail, fax and Tele-tin
Obtain Workers Compensation Insurance from a private insurance carrier or: Colorado Compensation Insurance Authority: 720 S. Colorado Blvd. Denver, CO 80222 303.782.4000 Register for Unemployment Compensation Insurance: Department of Labor and Employment: UI Tax Liability Unit 639 E. 18th Ave Denver, CO 80203 303.620.4785 Be aware of Wage, Hour, and Fair Labor Standards: Department of Labor and Employment 1515 Arapahoe St., Twr 2, Suite 400 Denver, CO 80202-2117 303.575.8700 Be aware of Occupational Safety regulations: Occupational Safety and Health Administration (OSHA) 1391 Speer Blvd., Ste 210 Denver, CO 80204 303.844.5285
Obtain Liability and General Business Insurance
Get information regarding Colorado business insurance: Colorado Division of Insurance 1560 Broadway, Suite 850 Denver, CO 80202 303.894.7490 1.800.930.3745 http://www.dora.state.co.us/insurance/ Find a local insurance agent that specializes in small business: http://www.dora.state.co.us/insurance/ Get a free online rate quote and compare insurance plans at: http://www.business.com/directory/financial_services/insurance/rates_and_quotes/ Contact your local Small Business Development Center: Denver Small Business Development Center 1445 Market Street Denver, CO 80303 303.620.8076 Source: MicroBusiness Development Corporation