Do you want to start a business in Colorado? Perhaps you want to start a business in the country but you don’t know how to. Here is our guide to help you get started. But before that, why should you start a business in Colorado?
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Why Should You Start a Business in Colorado?
Colorado’s economy is booming and there is a great opportunity for businesses to thrive in the country. According to Forbes, Colorado’s economy ranks the second-best state in the US.
This is based on factors such as the availability of a highly qualified workforce, business startup costs, quality of life, economic climate, growth prospects, regulatory environment, and population.
Businesses in Colorado have a high business survival rate. Many entrepreneurs are heading to Colorado to start up profitable business ideas in the state.
For instance, many Californians are making Colorado their home as a result of business prospects and higher chances of the business succeeding in the state.
There is healthy competition and plenty of profitable small business ideas that make for success and happiness. If you seek a place to start a business, Colorado is the right choice.
Things You Can Do To Start a Business in Colorado
Real estate and tech are two of the top growing industries in the state. You may decide to start a business in these fields in Colorado.
Other industries are also available to start a business in Colorado. You can pick any of the below to start a business in Colorado:
- Start a digital marketing agency by offering online services such as social media marketing, web design services, email marketing, and SEO services.
- If you are medically inclined, you can start a healthcare business such as a pharmacy, wellness center, online health products shop, and other related ideas.
- Provide daycare services for working parents who are committed to jobs.
- Pet services are becoming popular, you can start a business in pet sitting, dog walking, pet care, and maintenance services.
- Event management in corporate settings, social occasions or both
- Phone repair and maintenance services are also a lucrative idea if you are good at repairs.
- Start a vending machine business in a strategic location with products that are high in demand.
- Start an online retail store to sell products and services. Most Coloradans love to shop online, and target and promote your business to them.
- Start tutoring services in a field where you have maximum expertise and experience to teach others and get paid for it.
Step by Step Guide on How to Start A Business In Colorado
Colorado is one of the states in the US with the lowest business formation fees. You can register a limited liability company for as low as $50.
Follow these guides below to learn how you can start a business in Colorado from scratch.
1. Choose a Business Idea
Over 99% of new businesses launched in Colorado are small businesses. Take time to decide which business idea is best for you in terms of profitability, availability, strengths, and industry prospects.
2. Write Out a Business Plan
A business plan is more like the blueprint of your business. It is a document where you give clear details about the business.
From the nature of your business idea to your marketing plans, from your competition to business funding: it helps to keep the business on track.
3. Decide on a Legal Structure
There are options for registering your business as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Registering the business as an LLC is rather cheap, faster, and easy to start a business in Colorado.
4. Choose a Business Name
Giving your business a name is an important decision. The name should be appealing, and memorable, not offensive or contradicting Colorado business laws.
You can check for available names by doing a business name search on the Colorado Secretary of State’s website. An available name can be reserved for 120 days and renewed after.
To form an LLC or corporation, certain name requirements are considered such as adding ‘LLC’ for LLCs and ‘Company’ for corporations.
5. Register Your Business
You must register your company with the Colorado Secretary of State to become a legal business entity in the state. All documents you need must be complete to register your business in Colorado.
6. Pick a Business Location And Check The Zoning.
Pick a location that fits your type of business and check for zoning laws. Before you commit to a location, find out the cost of running your business in that area including rent and utilities.
A restaurant, for instance, needs foot traffic to be successful. Hence you should be certain the location will bring success to the business.
If you decide to run a home-based business, you still need to find zoning regulations by checking with the local authorities for zoning and planning in your town or city.
7. Get Your EIN and Apply For The Necessary Licenses and Permits
An Employer Identification Number from the IRS is needed to file taxes and pay company employees. It is also relevant for other business activities such as opening a business bank account. You will have to complete an online application to get your EIN
No general business license or permit is required to start a business in Colorado. However, you should find out about any special licenses and permits you may need to operate your new business in Colorado.
The special licenses and permits include regulatory licenses/permits, and professional and occupational licenses/permits. The regulatory ones cover areas such as health, building and construction, and other specific industries.
8. Obtain Insurance
Business owners who maintain an insurance policy as simple as business insurance can save the company from going bankrupt during uncontrollable circumstances.
Business insurance can protect your company and personal assets from unexpected losses such as natural disasters, personal injury lawsuits, or fire outbreaks.
9. Open a Business Bank Account
A separate bank account is needed to start a business in Colorado. You will also need the account to set up and organize your business finances. Payment for business transactions, employees’ salaries, and payments for bills and utilities will pass through your business account.
10. Fund and Promote Your Business
Select any of the funding options you have outlined in your business plan to fund the business. You may opt for small business loans from a local bank or direct lenders. You could also seek angel investors who may be attracted to fund your business.
Lastly, when all is done to start your business in Colorado, you will need to promote the business. There are different marketing strategies you can engage to promote and get new clients.
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