Do you need a Colorado sales tax license to sell online?

Whether you need a Colorado sales tax license to sell online depends on how and where you sell. If you sell exclusively through a third-party marketplace like Amazon or Etsy, you don't need a Colorado sales tax license. The marketplace facilitator is responsible for collecting and remitting Colorado sales tax on your behalf. If you sell through your own website, your responsibilities depend on whether you have a physical presence in Colorado. Out-of-state online sellers whose sales were $100,000 or less in both the current and previous calendar year don't need a license, but they must notify Colorado customers of their obligation to remit use tax. Out-of-state sellers who exceed $100,000 in Colorado sales must obtain a license and collect state sales tax. If your business sells through a marketplace and through your own website or a physical store, you're considered a multi-channel seller. You don't need to collect sales tax on your marketplace sales, but you do need a license and must collect sales tax on sales made through your own channels.

Do you need a separate license for each Colorado city you sell in?

Each physical business location in Colorado requires its own Colorado sales tax license at $16 per location. You don't need a separate license for every city you sell into, just for each physical location. But if you operate in a home-rule city, you may need to register separately with that city to collect local sales tax. Check with your city for licensing requirements.

Do home-based businesses need a license in Colorado?

While there is no general Colorado business license for home-based businesses, many cities and municipalities require a home occupation permit. Requirements vary by location and industry.

Do you need a business license for a side business in Colorado?

Colorado state doesn’t issue a general business license. Whether you need another type of license or registration to run your side business depends on your city, occupation, and industry. If your side business sells tangible goods, you need to get a Colorado sales tax license from the Colorado Department of Revenue.

Can you get a Colorado sales tax license the same day?

Yes, you can get a same-day Colorado sales tax license by applying online through MyBizColorado. You'll receive your license number immediately and can print a temporary license. A paper license will be mailed to you after any fees have been posted to your account. Allow two to three weeks for your paper license to arrive.

Do nonprofits need a Colorado sales tax license?

Colorado nonprofit organizations that make retail sales are subject to the same licensing requirements as other retailers unless all of the organization's sales are exempt from taxation. Occasional retail sales of tangible personal property made by a charitable organization are exempt from collecting and remitting sales tax if all of the following conditions are met: Sales are for fundraising purposes. Funds are retained by the organization to be used in the course of the organization's charitable service. The organization conducts sales for a total of 12 days or less during the calendar year. Net proceeds of such sales do not exceed $45,000 during the calendar year.

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Colorado business license: what you need and how to get it

Written byNatasha Etzel

Reviewed by Robin Saks Frankel

Updated November 5, 2026|6 min read

A snowy mountain range and a flagpole with an American flag and the Colorado state flag

Summary

While Colorado has no Colorado state business license, whether a business registration or license is required depends on what it sells, where it operates, and whether its industry or trade is regulated.
Businesses selling taxable goods in Colorado must obtain a Colorado state sales tax license from the Department of Revenue for $16 per location for a two-year term, plus a one-time $50 refundable deposit for the business's first location.
There are around 65 home-rule cities in Colorado, which include Denver, Colorado Springs, Aurora, Boulder, and Lakewood, that run their own sales tax licensing separately from the state, while DORA licenses regulated occupations.

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Do you need a business license in Colorado?

Colorado does not issue a general state business license. But most businesses still need at least one Colorado business license or registration, most often a state tax license, plus any city license and any occupational license their trade requires.

To clear up some common misconceptions: Registering an LLC or corporation with the Secretary of State is not a business license. The same applies if you're looking into a Colorado business license for a sole proprietorship. If you're using a name other than your own, you'll need to register a trade name with the Secretary of State, but that's a registration, not a license.

Not in Colorado? Here’s how to get a business license in your state.

What is the Colorado sales tax license?

The Colorado sales tax license is for state and state-administered sales and use taxes. Before a business can sell tangible goods and taxable services in the state, it must obtain a Colorado state sales tax license. Services are generally not subject to Colorado sales tax.

One license is required for each business location. A license is also required for wholesale-only businesses. You can obtain a Colorado sales tax license from the Colorado Department of Revenue by applying via MyBizColorado or by completing Form CR0100. Out-of-state businesses can register for a Colorado sales tax license through Revenue Online.

The fee is $16 for a two-year term (prorated to $12 when applying in the second half of the period). Renewal is $16 per location every two years, with licenses expiring on December 31 of odd-numbered years. A one-time $50 deposit is required for a business's first location, and is refunded after a business remits $50 in state sales tax.

How to get a business license in Colorado in 6 steps

Wondering how to obtain a small business license in Colorado?

Here are the steps for getting a business license in Colorado:

Form a limited liability company (LLC) or corporation with the Colorado Secretary of State, or register a trade name if you're a sole proprietor who wants to operate under a business name. You can also use a business formation service to handle the filing.
Get an employer identification number (EIN) through the IRS at IRS.gov.
Register for the state sales tax license, wage withholding, and unemployment insurance through MyBizColorado.
Register for the Family and Medical Leave Insurance Program (FAMLI) through My FAMLI+ Employer.
If your business is located in or sells into a home-rule city, you'll need to separately register with the home-rule city for local sales tax collection.
If your trade requires it, get an occupational license through the Colorado Department of Regulatory Agencies (DORA).

How much is a business license in Colorado?

Colorado business license costs vary depending on your business needs.

Here’s an overview of common registration and licensing costs:

Registration	Cost
State Sales Tax License	$16 (2-year term)
Refundable deposit (first location only)	$50
State Sales Tax License Renewal	$16 per location, every two years
LLC Articles of Organization (Secretary of State)	$50
City Licenses	Vary by city and trade
Occupational Licenses	Vary by city and trade

A single-location retailer's state cost is $66, including the refundable deposit.

Do you need a city business license in Colorado?

Many Colorado businesses need a city business license. Colorado is a home rule state, meaning many cities and municipalities administer their own sales tax and licensing. Registering only with the state does not register a business with home-rule cities like Denver, Colorado Springs, Aurora, Boulder, or Lakewood.

For a Denver business license, register for sales tax through the Denver eBiz Tax Center. Denver businesses in regulated industries, such as retail food and liquor, also require a business license from the Department of Licensing and Consumer Protection.

To get a Colorado Springs business license, register for a city sales tax license through the Colorado Springs GenTax portal. Colorado counties generally don't issue business licenses.

Which Colorado occupations need a state license?

In Colorado, more than 100 occupations require professionals to be licensed, certified, or registered. Under the Colorado Department of Regulatory Agencies (DORA), the Division of Professions and Occupations regulates most professions and occupations, including electricians, plumbers, cosmetologists and barbers, and health professionals.

General contractors are licensed by cities, such as Denver, rather than the state.

The Colorado Division of Real Estate licenses brokers and mortgage loan originators.

Other state agencies also regulate specific professions:

Department of Agriculture
Department of Education
Department of Revenue

Readers often ask whether the following trades need a state license:

Cleaning business: If you're looking into a Colorado cleaning business license, no state occupational license is needed. A cleaning business only needs a state sales tax license if it sells taxable goods.
Landscaping business: For a landscaping business license in Colorado, you'll need a commercial pesticide applicator license from the Colorado Department of Agriculture if you apply pesticides.

How a business license helps with financing and business credit

Lenders, landlords, and suppliers often ask for proof of licensing and registration before working with a business. A registered business with its own EIN, bank account, and supplier accounts is the foundation for building business credit. A business license can also make you look more professional and reputable.

Nav is not a lender or a credit bureau. Credit information is provided by third-party sources.

The bottom line

Colorado has no general state business license. Businesses selling taxable goods in the state need to obtain a Colorado state sales tax license and are often required to obtain a city license or a separate registration or license through DORA if operating in a regulated industry or trade.

Explore small business loans and learn more about Nav Prime, a platform that gives you the tools to strengthen your cash flow, build business credit, and get funding ready.

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Natasha Etzel
Contributor
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Natasha is a business and finance writer with over a decade of experience covering credit cards, banking, home loans, small business finances, and more. Her work has appeared in NerdWallet, The Motley Fool, Fast Company, Inc., and various other publications. Her newsletter, Finance for Freelancers, helps freelance creatives manage their finances and think more strategically about their business.
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Reviewed by
Robin Saks Frankel
Managing Editor
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Robin has worked as a personal finance writer, editor, and spokesperson for over a decade. Her work has appeared in national publications including Forbes Advisor, USA TODAY, NerdWallet, Bankrate, the Associated Press, and more. She has appeared on or contributed to The New York Times, Fox News, CBS Radio, ABC Radio, NPR, International Business Times and NBC, ABC, and CBS TV affiliates nationwide.

Robin holds an M.S. in Business and Economic Journalism from Boston University and dual B.A. degrees in Economics and International Relations from Boston University. In addition, she is an accredited CEPF® and holds an ACES certificate in Editing from the Poynter Institute.
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