Starting a Business in Colorado – A Step-by-Step Guide

Introduction

Colorado is one of the best places to start a business due to its stable economy and tax benefits. However, setting up a company requires proper registration, financial planning, and compliance with local and federal laws.

1. Choosing the Right Legal Structure

✔ Sole Proprietorship – Simple, but full personal liability.
✔ Limited Liability Company (LLC) – Limited liability, ideal for single owners or partnerships.
✔ Corporation – Best for larger businesses or those seeking investors.
✔ Limited Partnership (LP) – Limited liability for investors, unlimited liability for general partner.

2. Registering Your Business

✔ Commercial Registry: Every business doing business in Colorado must register with the Colorado Secretary of State.
✔ Federal Employer Identification Number (EIN) Registration: Used when filing federal tax return forms.
✔ Opening a Business Bank Account: Choose between a brick-and-mortar bank or online only bank depending on needs.

3. Tax & Accounting Requirements

✔ Tax rates/recognition varies depending on the entity structure.
✔ Sales/use tax requirements established by various home-rule jurisdictions in Colorado.
✔ Determine the best bookkeeping software that meets your needs.

4. Why Business Advisory Matters

At Tailored Tax and Wealth, we help entrepreneurs set up and grow their businesses, ensuring compliance with local and federal laws while optimizing financial strategies.

Thinking of starting a business? Let’s make it happen!