How to Get a Business License in Denver

Starting a business in Denver is an exciting step toward economic independence and community contribution. However, before you open your doors, serve your first customer, or launch your website, one critical legal requirement must be fulfilled: obtaining a valid business license. In Denver, a business license is not merely a formality—it is a mandatory authorization from the city that legitimizes your operations, ensures compliance with local regulations, and protects both consumers and entrepreneurs. Without it, you risk fines, operational shutdowns, and damage to your business reputation.

The process of acquiring a business license in Denver involves several interconnected steps, from determining your business structure to submitting applications, paying fees, and meeting zoning and industry-specific requirements. While the system may seem complex at first, understanding the workflow and preparing thoroughly can turn what feels overwhelming into a streamlined, manageable procedure. This guide provides a comprehensive, step-by-step roadmap tailored to entrepreneurs, small business owners, and startup founders navigating the Denver business licensing landscape.

Whether you’re opening a coffee shop in RiNo, launching a freelance design service from your home office, or expanding a retail chain into the Denver metro area, this guide equips you with the knowledge to comply efficiently and avoid costly delays. By the end, you’ll not only know how to get a business license in Denver—you’ll understand why each step matters and how to sustain long-term compliance.

Step-by-Step Guide

1. Determine Your Business Structure

Before applying for a license, you must legally define your business structure. This decision impacts your tax obligations, liability exposure, and the documentation required for licensing. Common structures in Denver include:

• Sole Proprietorship: The simplest form, where you and your business are legally the same entity. No formal registration is required at the state level, but you still need a city business license.
• Partnership: Two or more individuals sharing ownership. You may need to file a Statement of Partnership Authority with the Colorado Secretary of State.
• Limited Liability Company (LLC): Offers personal liability protection and flexible taxation. Must be registered with the Colorado Secretary of State.
• Corporation (C-Corp or S-Corp): A more complex structure requiring articles of incorporation, bylaws, and ongoing compliance.

Each structure requires different paperwork. For LLCs and corporations, you must first complete state registration before applying for a Denver business license. Sole proprietors and partnerships can proceed directly to the city application but should still consider registering a DBA (Doing Business As) name if operating under a trade name different from your legal name.

2. Register Your Business Name (DBA)

If your business operates under a name other than your legal name (for sole proprietors) or the official corporate name (for LLCs and corporations), you must register a DBA—also known as a fictitious business name—with the Denver Clerk and Recorder’s Office.

To register:

• Visit the Denver Clerk and Recorder’s website.
• Complete the Fictitious Business Name Statement form.
• Pay the $15 filing fee (as of 2024).
• Submit the form in person, by mail, or electronically.

Once approved, your DBA is valid for five years and must be renewed before expiration. This step is essential for opening a business bank account, advertising under your brand name, and ensuring legal clarity in contracts.

3. Obtain an Employer Identification Number (EIN)

Even if you don’t plan to hire employees, the IRS requires most businesses to have an EIN—a unique nine-digit identifier used for tax purposes. You’ll need your EIN to open a business bank account, file taxes, and apply for certain permits in Denver.

To get an EIN:

• Visit the IRS website at irs.gov/ein.
• Complete the free online application (available Monday–Friday, 7 a.m.–10 p.m. Eastern Time).
• Receive your EIN immediately upon submission.

Keep your EIN confirmation letter in a secure location. You’ll need to provide it during the Denver business license application process.

4. Apply for a Denver Business License

The core step in the process: applying for your Denver Business License. This is managed through the City and County of Denver’s Department of Finance, Business Licensing Division.

Online Application Process:

• Go to the official portal: denvergov.org/businesslicense.
• Create an account using your email and a secure password.
• Complete the Business License Application Form, providing:
• Your legal business name and DBA (if applicable)
• Business address (physical location, not P.O. Box)
• Business structure (sole proprietor, LLC, etc.)
• Owner(s) full name, address, and Social Security Number or EIN
• Industry classification (NAICS code)
• Estimated annual gross receipts

• Upload required documents: EIN confirmation, DBA certificate (if applicable), and proof of zoning compliance (see Step 5).
• Pay the application fee: $50 for most businesses. Additional fees may apply based on industry or gross receipts.
• Submit your application.

Processing time typically takes 5–10 business days if all documents are complete. You’ll receive an email notification when your license is issued. Print or save the digital copy—this is your official proof of authorization to operate.

5. Verify Zoning Compliance

Denver enforces strict zoning regulations to ensure businesses operate in appropriate areas. Your business location must be zoned for your type of activity. For example, a restaurant cannot operate in a purely residential zone without special approval.

To verify zoning:

• Use the City’s Zoning Map Tool.
• Enter your business address.
• Review the designated zoning district (e.g., C-1, R-2, M-1).
• Compare it to the Denver Zoning Code to confirm permitted uses.

If your use is not permitted outright, you may need to apply for a Special Use Permit or Variance through the Denver Department of Planning and Development. This can add 30–60 days to your timeline and may require public hearings. Start this step early to avoid delays.

6. Secure Industry-Specific Permits and Licenses

Many businesses require additional permits beyond the general business license. These are regulated by state or city agencies and vary by industry. Common examples include:

• Food Service: Health permit from the Denver Public Health Department. Requires kitchen inspection, food safety training, and a Food Protection Manager Certification.
• Alcohol Sales: Liquor license from the Colorado Department of Revenue, Alcohol and Tobacco Division. Denver also requires a local liquor license application.
• Childcare: License from the Colorado Department of Human Services, Office of Early Childhood.
• Contractors: Registration with the Denver Department of Permits and Inspections and proof of workers’ compensation insurance.
• Salons and Spas: License from the Colorado State Board of Cosmetology.
• Home-Based Businesses: Must comply with Denver’s Home Occupation Ordinance (Title 25, Chapter 25.38), limiting signage, customer traffic, and noise.

Visit the Industry-Specific Permits page on Denver’s official site for a full list. Failure to obtain required permits can result in fines or immediate closure.

7. Register for Taxes

Once licensed, you must register with the City and County of Denver for applicable taxes:

• Denver Sales and Use Tax: Required if you sell tangible goods or certain services. Register through the Denver Sales Tax Portal.
• Denver Business Income Tax: Applies to businesses with gross receipts over $25,000 annually. Rates vary by industry and location.
• Denver Employment Tax: If you hire employees, you must register for payroll tax withholding.

Use the City’s Tax Registration Tool to complete all registrations in one place. Failure to register can result in penalties of up to 25% of unpaid taxes plus interest.

8. Display Your License and Maintain Compliance

Upon receiving your license, you must display it prominently at your place of business. If operating from home, keep a copy readily available for inspection. Digital businesses without a physical storefront must display their license on their website’s footer or “About” page.

Annual renewal is required. Most licenses expire on December 31 and must be renewed by January 31 of the following year. You’ll receive a renewal notice by email or mail, but it’s your responsibility to track the deadline. Late renewals incur a 10% penalty.

Also update your license within 30 days if you change your business address, ownership, or structure. Failure to notify the city may result in license suspension.

Best Practices

Start Early

Many entrepreneurs underestimate how long licensing and permitting can take. A simple retail business may take 3–4 weeks to fully license. A restaurant with liquor and health permits can take 8–12 weeks. Begin the process at least 60 days before your planned opening date.

Keep Digital and Physical Records

Store all documents—application confirmations, permits, tax registrations, renewal notices—in both digital and physical formats. Use cloud storage (Google Drive, Dropbox) with encrypted folders labeled clearly. Physical copies should be kept in a fireproof box or safe.

Use the Official Denver Portal

Only use denvergov.org for applications and information. Third-party websites may charge unnecessary fees or provide outdated guidance. The City’s portal is free, secure, and updated in real time.

Understand Your NAICS Code

The North American Industry Classification System (NAICS) code determines your business category and affects licensing fees and tax rates. Use the U.S. Census Bureau’s NAICS search tool to find the most accurate code for your operations. Misclassification can lead to underpayment of fees or audits.

Plan for Ongoing Compliance

Business licensing isn’t a one-time task. Stay informed about changes in zoning laws, tax codes, and industry regulations. Subscribe to Denver’s Business Licensing newsletter and join local chambers of commerce for updates.

Consult Professionals When Needed

If your business involves complex regulations—such as healthcare, construction, or alcohol sales—consult a local business attorney or certified public accountant. Their expertise can prevent costly missteps and ensure you meet all federal, state, and city requirements.

Document Everything

When communicating with city departments, always follow up emails with written summaries. If you visit in person, ask for a receipt or case number. Paper trails protect you in case of disputes or audits.

Tools and Resources

Official Denver Resources

• Denver Business Licensing Portal – Apply, renew, and track your license.
• Denver Zoning Map – Verify your business location’s zoning designation.
• Denver Tax Registration – Register for sales, income, and employment taxes.
• Denver Zoning Code – Full legal text for permitted uses.
• Industry-Specific Permits – Checklists for restaurants, salons, contractors, and more.

State and Federal Tools

• Colorado Department of Regulatory Agencies (DORA) – Professional licensing for healthcare, cosmetology, contractors, etc.
• IRS EIN Application – Free, instant EIN issuance.
• Colorado Secretary of State – Register LLCs, corporations, and file annual reports.
• Colorado Department of Revenue – State tax registration and liquor licensing.

Business Support Organizations

• Denver Metro Chamber of Commerce – Networking, workshops, and business advocacy.
• Small Business Administration (SBA) Colorado – Free counseling, loan programs, and training.
• Denver Business Center – One-stop assistance for startups, including licensing guidance.

Software and Apps

• QuickBooks – Track income, expenses, and tax obligations.
• LegalZoom – For LLC formation and document preparation (use with caution; verify with city requirements).
• LicenseLogix – Automated license tracking for multi-location businesses.
• Google Calendar – Set reminders for renewal dates, inspections, and tax deadlines.

Real Examples

Example 1: Home-Based Freelance Graphic Designer

Samantha runs a freelance design business from her home in Northwest Denver. She operates under her legal name but uses “Samantha Designs” as her brand.

Her process:

• Registered “Samantha Designs” as a DBA with Denver Clerk and Recorder ($15).
• Obtained an EIN from the IRS (free).
• Applied for a Denver Business License online ($50), selecting “Professional Services” as her NAICS code.
• Verified her home is zoned R-1, which allows home occupations under Denver’s ordinance.
• Registered for Denver Sales Tax because she sells digital templates (considered taxable under Colorado law).

She set calendar reminders for annual renewal and keeps all documents in a password-protected cloud folder. No additional permits were needed.

Example 2: Coffee Shop in RiNo

Carlos and Maria opened “RiNo Roast,” a small-batch coffee shop in the River North Art District.

Steps they took:

• Formed an LLC with the Colorado Secretary of State ($50 filing fee).
• Registered “RiNo Roast” as a DBA.
• Obtained an EIN.
• Used the Zoning Map to confirm C-1 zoning allowed food service.
• Applied for Denver Business License ($50 + gross receipts fee).
• Applied for a Food Service Permit from Denver Public Health (required kitchen inspection and Food Manager Certification).
• Applied for a Liquor License through the Colorado Department of Revenue and Denver’s local liquor authority (took 10 weeks).
• Registered for Sales Tax and Business Income Tax.
• Displayed licenses at the counter and on their website.

They hired a local business attorney to navigate liquor licensing and saved $15,000 in potential fines by ensuring compliance before opening.

Example 3: Mobile Dog Grooming Service

James operates a mobile dog grooming van serving Denver neighborhoods.

His licensing steps:

• Registered as a sole proprietor under his legal name.
• Obtained an EIN.
• Applied for a Denver Business License ($50), selecting “Animal Services.”
• Obtained a Colorado State Board of Cosmetology license for pet grooming.
• Verified his vehicle met Denver’s Mobile Business Vehicle Requirements (insurance, emissions, signage).
• Registered for Sales Tax on grooming services.

He keeps his licenses and insurance documents in his van at all times and receives annual renewal notices via email.

FAQs

Do I need a business license if I’m selling online from Denver?

Yes. If your business is based in Denver—even if you sell exclusively online—you must obtain a Denver Business License. You may also need to collect and remit Colorado sales tax if you sell tangible goods.

How much does a Denver business license cost?

The base application fee is $50. Additional fees may apply based on your industry, estimated annual gross receipts, or if you require special permits. For example, businesses with over $100,000 in gross receipts pay higher fees. Check the fee schedule on the official portal.

Can I operate without a license while waiting for approval?

No. Operating without a valid license is illegal in Denver and can result in fines up to $999 per day. Always wait for official approval before opening to the public.

How often do I need to renew my license?

Annual renewal is required. All licenses expire on December 31 and must be renewed by January 31. Late renewals incur a 10% penalty.

What if I move my business to a new location in Denver?

You must notify the Business Licensing Division within 30 days of your move. You may need to reapply for zoning approval and update your license with the new address.

Do non-profits need a business license?

Yes. Non-profits operating in Denver must obtain a business license, even if they are tax-exempt. You’ll need to provide your IRS 501(c)(3) determination letter during the application.

Can I get a temporary business license for a pop-up shop?

Yes. Denver offers temporary business licenses for events, markets, and pop-ups lasting up to 30 days. Apply at least 10 days in advance through the Business Licensing Portal.

What happens if I don’t renew my license?

Your license becomes inactive. You may be fined up to $999 per day of non-compliance. After 90 days, your license may be revoked, requiring a new application and full fee payment.

Is there help available for minority-owned or veteran-owned businesses?

Yes. Denver offers fee waivers and expedited processing for certified minority-owned, women-owned, and veteran-owned businesses through the Office of Economic Development. Apply for certification at denvergov.org/oed.

Do I need a separate license for each location?

Yes. Each physical location in Denver requires its own business license, even if owned by the same entity. Multi-location businesses must submit separate applications for each site.

Conclusion

Obtaining a business license in Denver is not a hurdle—it’s the foundation of a legitimate, sustainable, and respected business. From determining your legal structure to renewing your license annually, each step is designed to ensure fairness, safety, and accountability in the marketplace. While the process may appear intricate, following this guide eliminates guesswork and empowers you to move forward with confidence.

Remember: compliance isn’t optional. It’s an investment in your business’s longevity and credibility. By using official resources, staying organized, and planning ahead, you’ll avoid penalties, build trust with customers, and position your business for growth.

Denver’s entrepreneurial ecosystem thrives on innovation—but it also demands responsibility. By securing your business license properly, you’re not just following the rules; you’re becoming a trusted pillar of the community. Start today. Complete each step. And take pride in knowing your business is not only ready to operate—but ready to succeed.