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Starting a Business in Colorado: What You Need to Know Before You Launch

So, you’ve got the idea, the passion and that spark that says, “I’m ready.” Whether you’re dreaming of a cozy café in Capitol Hill, a landscaping biz in Lakewood or an online shop run from your Highlands home — starting a business in Colorado is exciting!

Step 1: Understand Your Business Needs

Before you dive in, ask yourself:

  • What’s my 5-year vision?

  • Will I hire employees?

  • Who are my customers, and how will I serve them?

Your answers to these questions will shape every next step — from your legal setup to your marketing plan.

Step 2: Name Your Business

Pick a name that’s unique and easy to remember. Then, check that it’s available in Colorado by searching the Colorado Secretary of State Business Database.

Step 3: Choose Your Business Structure

Will you be a sole proprietorship, LLC, corporation or something else? Each comes with different benefits and responsibilities. We recommend connecting with an accountant to help you decide.

Step 4: Get Licensed

Licensing depends on your industry and location. From health permits to sales tax licenses, be sure to research what applies to you. The Colorado Department of Regulatory Agencies is a great place to start.

Step 5: Apply for Your EIN

An employer identification number (EIN) is like your business’s Social Security number — it’s essential for taxes and banking. Apply for free through the IRS website.

Step 6: File with the Secretary of State

Make your business official by registering it with the Colorado Secretary of State. This step is critical to protect your name and get you legally recognized.

Step 7: Open Your Business Bank Account with Westerra

Set aside your first deposit and open your business account with Westerra Credit Union. We offer:

  • Low fees and no minimum balance requirements

  • Easy online and mobile access to keep you in control

  • Business debit cards and payment tools to simplify spending

  • Local support from bankers who understand Colorado small business

Step 8: Build Your Business Toolbox — and Have Fun!

We don’t just help you bank — we help you thrive. Once your account is open, we can assist you with:

  • Setting up your online presence

  • Understanding payment processing options

  • Managing outgoing expenses

  • And much more

You’re Not Alone — We’re Here to Help

Starting a business is a big step, but you don’t have to take it alone. Check out these helpful resources:

  • Colorado Small Business Development Center (SBDC): coloradosbdc.org

  • Local Chambers of Commerce: Connect with your city’s chamber for networking and local insights

  • Colorado Office of Economic Development and International Trade: choosecolorado.com

Westerra is your financial partner every step of the way. Because with the right support?

You Can Do Money.

Helping Colorado Nonprofits Thrive

Running a nonprofit in Colorado takes more than heart — it takes strategy, community, and the right financial tools to keep your mission moving forward.

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