How Much Does It Cost to Start a Business in Colorado?
Last updated: May 2026
Colorado Business Overview
LLC Filing Fee
$50
Sales Tax Rate
2.9%
Minimum Wage
$15.16/hr
Cost of Living Index
103.1
Workers Comp
Required
Annual Report Fee
$10
Starting a Business in Colorado
Colorado does not have a statewide business license. Registration with the Secretary of State is required, and most municipalities require local business licenses.
Colorado has a flat 4.4% individual and corporate income tax rate. The state sales tax is 2.9% but local taxes can bring the total to 11% in some areas.
Colorado's outdoor recreation economy drives strong demand for hospitality and fitness businesses. The cannabis industry is well-established with a mature regulatory framework.
For official formation documents, visit the Colorado Secretary of State.
Startup Costs for 100 Business Types in Colorado
The table below shows estimated startup costs for every major business type, adjusted for Colorado’s cost of living index of 103.1. Click any column header to sort. Click a business name to see full cost breakdowns, calculator, and licensing requirements.
| Accounting Firm | Professional Services | $7,700 | $22,000 | $50,600 |
| Airbnb & Vacation Rental Business | Real Estate | $12,100 | $33,000 | $99,000 |
| Ambulance Service | Transportation & Logistics | $88,000 | $220,000 | $550,000 |
| App Development Company | Tech & Online | $11,000 | $33,000 | $88,000 |
| Architecture Firm | Professional Services | $22,000 | $60,500 | $143,000 |
| Auto Detailing Business | Automotive | $5,500 | $33,000 | $110,000 |
| Auto Repair Shop | Automotive | $82,500 | $220,000 | $550,000 |
| Bakery | Food & Beverage | $22,000 | $104,500 | $330,000 |
| Bar & Nightclub | Food & Beverage | $110,000 | $385,000 | $935,000 |
| Barbershop | Beauty & Personal Care | $16,500 | $71,500 | $192,500 |
| Beauty Supply Store | Beauty & Personal Care | $33,000 | $110,000 | $330,000 |
| Bookstore | Retail | $27,500 | $110,000 | $330,000 |
| Brewery / Microbrewery | Food & Beverage | $275,000 | $440,000 | $1,650,000 |
| Cannabis Dispensary | Specialty & Regulated | $136,950 | $365,200 | $1,369,500 |
| Car Wash | Automotive | $136,950 | $598,400 | $1,709,400 |
| Carpentry & Woodworking Shop | Construction & Trades | $11,550 | $30,800 | $77,000 |
| Catering Business | Food & Beverage | $13,200 | $58,300 | $143,000 |
| Chiropractic Office | Health & Wellness | $110,000 | $132,000 | $330,000 |
| Cleaning Business | Home Services | $1,650 | $12,100 | $40,700 |
| Clothing Boutique | Retail | $33,000 | $110,000 | $330,000 |
| Coffee Shop | Food & Beverage | $66,000 | $132,000 | $385,000 |
| Concrete Business | Construction & Trades | $27,500 | $71,500 | $165,000 |
| Consulting Business | Professional Services | $2,200 | $9,900 | $28,600 |
| Convenience Store | Retail | $55,000 | $308,000 | $825,000 |
| Courier & Delivery Service | Transportation & Logistics | $8,800 | $24,200 | $60,500 |
| Cybersecurity Firm | Tech & Online | $22,000 | $60,500 | $165,000 |
| Dance Studio | Childcare & Education | $22,000 | $88,000 | $275,000 |
| Daycare Center | Childcare & Education | $66,000 | $198,000 | $550,000 |
| Demolition Company | Construction & Trades | $33,000 | $88,000 | $220,000 |
| Dental Practice | Health & Wellness | $385,000 | $550,000 | $1,100,000 |
| Digital Marketing Agency | Tech & Online | $4,400 | $13,200 | $35,200 |
| E-Commerce Store | Tech & Online | $5,500 | $16,500 | $55,000 |
| Electrical Business | Home Services | $16,500 | $60,500 | $176,000 |
| Esthetics & Skincare Business | Beauty & Personal Care | $8,800 | $44,000 | $132,000 |
| Excavation Company | Construction & Trades | $55,000 | $143,000 | $385,000 |
| Financial Planning Practice | Professional Services | $22,000 | $60,500 | $143,000 |
| Flower Shop | Retail | $22,000 | $82,500 | $220,000 |
| Food Delivery Service | Food & Beverage | $11,000 | $57,200 | $143,000 |
| Food Processing Business | Food & Beverage | $220,000 | $275,000 | $825,000 |
| Food Truck | Food & Beverage | $49,500 | $132,000 | $220,000 |
| Freight Brokerage | Transportation & Logistics | $17,600 | $39,600 | $88,000 |
| Furniture Store | Retail | $55,000 | $220,000 | $660,000 |
| General Contracting Business | Construction & Trades | $22,000 | $60,500 | $143,000 |
| Ghost Kitchen | Food & Beverage | $22,000 | $66,000 | $165,000 |
| Gift Shop | Retail | $22,000 | $77,000 | $220,000 |
| Gym & Fitness Center | Health & Wellness | $55,000 | $275,000 | $1,100,000 |
| Hair Salon | Beauty & Personal Care | $16,500 | $82,500 | $275,000 |
| Handyman Business | Home Services | $2,200 | $11,000 | $36,300 |
| Home Health Care Agency | Health & Wellness | $44,000 | $143,000 | $330,000 |
| HVAC Business | Home Services | $22,000 | $77,000 | $220,000 |
| Ice Cream Shop | Food & Beverage | $22,000 | $82,500 | $220,000 |
| Insurance Agency | Professional Services | $16,500 | $44,000 | $99,000 |
| IT Services Business | Tech & Online | $16,500 | $44,000 | $110,000 |
| Juice Bar & Smoothie Shop | Food & Beverage | $27,500 | $99,000 | $275,000 |
| Landscaping Business | Home Services | $11,000 | $44,000 | $132,000 |
| Laundromat | Real Estate | $110,000 | $275,000 | $660,000 |
| Law Firm | Professional Services | $13,200 | $37,400 | $89,100 |
| Limousine & Car Service | Transportation & Logistics | $44,000 | $99,000 | $242,000 |
| Liquor Store | Retail | $55,000 | $198,000 | $550,000 |
| Marketing Agency | Professional Services | $5,500 | $19,800 | $55,000 |
| Martial Arts Studio | Childcare & Education | $22,000 | $77,000 | $220,000 |
| Meal Prep Business | Food & Beverage | $22,000 | $71,500 | $220,000 |
| Med Spa | Health & Wellness | $110,000 | $385,000 | $1,100,000 |
| Medical Practice | Health & Wellness | $165,000 | $440,000 | $1,100,000 |
| Mental Health Practice | Health & Wellness | $16,500 | $55,000 | $165,000 |
| Moving Company | Home Services | $33,000 | $110,000 | $330,000 |
| Music School | Childcare & Education | $11,000 | $55,000 | $165,000 |
| Nail Salon | Beauty & Personal Care | $22,000 | $99,000 | $275,000 |
| Painting Business | Home Services | $5,500 | $27,500 | $88,000 |
| Personal Training Business | Health & Wellness | $5,500 | $27,500 | $110,000 |
| Pest Control Business | Home Services | $11,000 | $44,000 | $132,000 |
| Pet Store | Retail | $33,000 | $110,000 | $330,000 |
| Pharmacy | Health & Wellness | $275,000 | $440,000 | $1,100,000 |
| Physical Therapy Clinic | Health & Wellness | $66,000 | $198,000 | $495,000 |
| Pizza Shop | Food & Beverage | $82,500 | $192,500 | $440,000 |
| Plumbing Business | Home Services | $16,500 | $55,000 | $165,000 |
| Podcast Production Company | Tech & Online | $2,200 | $6,600 | $19,800 |
| Preschool | Childcare & Education | $55,000 | $165,000 | $440,000 |
| Property Management Company | Real Estate | $11,550 | $26,400 | $60,500 |
| Real Estate Agency | Professional Services | $11,000 | $30,800 | $77,000 |
| Real Estate Investing & Rental Business | Real Estate | $27,500 | $82,500 | $275,000 |
| Restaurant | Food & Beverage | $192,500 | $412,500 | $825,000 |
| Roofing Company | Home Services | $16,500 | $66,000 | $198,000 |
| SaaS Company | Tech & Online | $22,000 | $66,000 | $220,000 |
| Spa & Massage Therapy | Health & Wellness | $11,000 | $77,000 | $275,000 |
| Staffing Agency | Professional Services | $22,000 | $60,500 | $165,000 |
| Storage Unit Facility | Real Estate | $220,000 | $660,000 | $2,200,000 |
| Tattoo Shop | Beauty & Personal Care | $22,000 | $64,900 | $220,000 |
| Tax Preparation Business | Professional Services | $3,850 | $11,000 | $29,700 |
| Thrift Store | Retail | $22,000 | $82,500 | $220,000 |
| Tire Shop | Automotive | $55,000 | $165,000 | $440,000 |
| Towing Company | Automotive | $55,000 | $165,000 | $440,000 |
| Trucking Company | Transportation & Logistics | $33,000 | $88,000 | $220,000 |
| Tutoring Business | Childcare & Education | $2,200 | $26,400 | $110,000 |
| Used Car Dealership | Automotive | $55,000 | $220,000 | $660,000 |
| Vape Shop | Retail | $27,500 | $82,500 | $220,000 |
| Web Development Agency | Tech & Online | $3,850 | $13,200 | $36,300 |
| Welding Business | Construction & Trades | $16,500 | $44,000 | $110,000 |
| Winery | Food & Beverage | $550,000 | $838,200 | $3,300,000 |
| Yoga Studio | Health & Wellness | $16,500 | $88,000 | $220,000 |
Most Popular Business Types in Colorado
Licenses & Permits in Colorado
General Business License
Colorado does not have a statewide general business license requirement. Businesses must register their entity with the Colorado Secretary of State and obtain a sales tax license from the Colorado Department of Revenue if selling taxable goods or services. Many municipalities require a local business license — Denver, Aurora, Colorado Springs, and Boulder all have their own business licensing programs with state-set annual fees that vary by program.
Industry-Specific Licenses
- Retail Food Establishment License — Colorado Department of Public Health and Environment or County HealthCost: Varies — contact agency • Renewal: Annual
- Contractor License — Local jurisdiction (Denver Building and Fire Code Services, etc.)Cost: Varies — contact agency • Renewal: Annual
- Retail Marijuana Store License — Colorado Marijuana Enforcement DivisionCost: Varies — contact agency • Renewal: Annual
- Cosmetology Salon License — Colorado Office of Barber and Cosmetology LicensureCost: Varies — contact agency • Renewal: Biennial
- Real Estate Broker License — Colorado Division of Real EstateCost: Varies — contact agency • Renewal: Every 3 years
- Child Care Center License — Colorado Department of Early ChildhoodCost: Varies — contact agency • Renewal: Annual
- Retail Liquor Store License — Colorado Liquor Enforcement DivisionCost: Varies — contact agency • Renewal: Annual
- Outfitter and Guide License — Colorado Parks and WildlifeCost: Varies — contact agency • Renewal: Annual
Home-Based Business Rules
Colorado municipalities regulate home-based businesses through local zoning ordinances. Denver allows home occupations with restrictions on customer visits (typically 1 person at a time), no exterior display, and no storage of commercial vehicles. Colorado State law preempts local regulations that would completely prohibit home-based businesses. The Colorado Cottage Food Act specifically authorizes home-based food production with certain limitations.
Colorado Business Resources
SBA District Office
Colorado SBA District Office — Denver
Secretary of State
https://www.sos.state.co.us/bizZoning Information
Colorado cities have well-developed zoning codes. Denver and Boulder have significant commercial zoning regulations with neighborhood overlay districts.
Health Department Notes
Food establishments need a license from the local county health department. Colorado's cottage food law allows sales up to $5,000 per year without a license.
Workers Compensation
Required for all employers with one or more employees. Colorado has a competitive workers comp market with reasonable rates.