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How to Open a Small Business in Denver
June 26, 2025
by Partner Colorado Credit Union
Opening a small business in Denver can be an exciting journey filled with opportunity, especially with our city’s strong economic growth, entrepreneurial spirit and community support. According to a report by WalletHub, Colorado has the number 10 best economy of all the states in America.
Whether you're planning to launch a coffee shop, hair salon or landscaping business, having a clear roadmap will help you navigate the process with confidence. Here’s a step-by-step guide to get your small business off the ground in the Mile High City.
Every business begins with an idea. Think about what product or service you want to offer, who your target customers will be and how you’ll stand out from competitors. Once you’ve identified your concept, write a business plan. Your plan should include your business goals, market research, pricing strategies, funding sources and an overview of your operations and marketing strategy. This will not only help guide your decisions, but is often required when applying for financing.
Before registering your business, you’ll need to decide what kind of business entity is best for you. In Colorado, the basic structures include the following.
Sole Proprietorship – Owned by one person, typically for self-employed professionals or freelancers. This is the easiest type of business to set up, but you’re personally liable for business debts meaning you report income on your personal tax return, and profits are taxed at your individual tax rate.
Limited Liability Company (LLC) – Offers flexibility and protects your personal assets. This is good for service businesses, consultants and companies planning to add partners or staff.
Corporation – More complex and ideal for businesses planning to raise capital for business growth. A corporation exists separately from the people who create it—its owned by its shareholders.
General Partnership – For firms with multiple owners like a law firm, accounting groups, medical practices and real estate investment firms.
You can compare your options and register your business on the Colorado Secretary of State website and consult with a tax or legal professional if needed.
Once you’ve chosen your structure, you’ll need to register your business name with the Colorado Secretary of State. This can be done online. Your business name must be unique from every other business name on record with the Secretary of State.
An Employer Identification Number (EIN) is like a Social Security number for your business. It’s free from the IRS and required if you have employees or plan to open a business bank account. Once you have your EIN, consider opening a business checking or business savings account to keep your personal and business finances separate.
Denver requires certain business licenses depending on the type of business you plan to open. For example, restaurants, salons, contractors and child care providers all need specific licenses. Check with Denver’s Business Licensing Directory to find out what applies to you.
You may also need state-level licenses or permits through the Colorado Department of Regulatory Agencies (DORA), especially for professions like real estate or accounting.
If your business needs a physical space, explore zoning regulations through the Denver Community Planning and Development department. Make sure the property is zoned for your type of business and it meets safety and accessibility requirements. You'll also want to compare leases and consider your customer traffic, parking availability and proximity to competitors.
Starting a small business often requires some initial capital. Explore the following funding options.
• Personal savings
• Small business loans
• SBA-backed loans
• Local grant programs
• Business credit cards
• Crowdfunding (raising funds)
Partner Colorado can help you explore financing options including business loans or business lines of credit to support your launch and growth.
Once you’re legally set up, it’s time to build your brand. Create a logo, launch a website, set up social media profiles and start marketing. Denver’s entrepreneurial community is active on platforms like LinkedIn, Facebook and Instagram, so find ways to connect and spread the word about your business.
Denver offers many resources for small business owners. Consider connecting with the following.
• Denver Metro Small Business Development Center (SBDC)
• Denver Chamber of Commerce
• Colorado Office of Economic Development and International Trade (OEDIT)
These organizations provide free or low-cost consulting, workshops, networking and mentoring to help you succeed.
Opening a small business in Denver involves more than just a great idea—it takes planning, paperwork and persistence. But with the right guidance and support from local organizations and networks, you can confidently take those first steps toward entrepreneurship. Whether you’re launching a storefront, service or online venture, Denver is a growing city ready to support your business dreams.
Whether you're planning to launch a coffee shop, hair salon or landscaping business, having a clear roadmap will help you navigate the process with confidence. Here’s a step-by-step guide to get your small business off the ground in the Mile High City.
Start With a Business Idea and Plan
Every business begins with an idea. Think about what product or service you want to offer, who your target customers will be and how you’ll stand out from competitors. Once you’ve identified your concept, write a business plan. Your plan should include your business goals, market research, pricing strategies, funding sources and an overview of your operations and marketing strategy. This will not only help guide your decisions, but is often required when applying for financing.
Choose a Business Structure
Before registering your business, you’ll need to decide what kind of business entity is best for you. In Colorado, the basic structures include the following.Sole Proprietorship – Owned by one person, typically for self-employed professionals or freelancers. This is the easiest type of business to set up, but you’re personally liable for business debts meaning you report income on your personal tax return, and profits are taxed at your individual tax rate.
Limited Liability Company (LLC) – Offers flexibility and protects your personal assets. This is good for service businesses, consultants and companies planning to add partners or staff.
Corporation – More complex and ideal for businesses planning to raise capital for business growth. A corporation exists separately from the people who create it—its owned by its shareholders.
General Partnership – For firms with multiple owners like a law firm, accounting groups, medical practices and real estate investment firms.
You can compare your options and register your business on the Colorado Secretary of State website and consult with a tax or legal professional if needed.
Register Your Business
Once you’ve chosen your structure, you’ll need to register your business name with the Colorado Secretary of State. This can be done online. Your business name must be unique from every other business name on record with the Secretary of State.
Get an EIN and Open a Business Bank Account
An Employer Identification Number (EIN) is like a Social Security number for your business. It’s free from the IRS and required if you have employees or plan to open a business bank account. Once you have your EIN, consider opening a business checking or business savings account to keep your personal and business finances separate.
Obtain Licenses and Permits
Denver requires certain business licenses depending on the type of business you plan to open. For example, restaurants, salons, contractors and child care providers all need specific licenses. Check with Denver’s Business Licensing Directory to find out what applies to you.You may also need state-level licenses or permits through the Colorado Department of Regulatory Agencies (DORA), especially for professions like real estate or accounting.
Find a Business Location
If your business needs a physical space, explore zoning regulations through the Denver Community Planning and Development department. Make sure the property is zoned for your type of business and it meets safety and accessibility requirements. You'll also want to compare leases and consider your customer traffic, parking availability and proximity to competitors.
Secure Financing
Starting a small business often requires some initial capital. Explore the following funding options.• Personal savings
• Small business loans
• SBA-backed loans
• Local grant programs
• Business credit cards
• Crowdfunding (raising funds)
Partner Colorado can help you explore financing options including business loans or business lines of credit to support your launch and growth.
Build Your Brand and Online Presence
Once you’re legally set up, it’s time to build your brand. Create a logo, launch a website, set up social media profiles and start marketing. Denver’s entrepreneurial community is active on platforms like LinkedIn, Facebook and Instagram, so find ways to connect and spread the word about your business.
Join Local Business Resources
Denver offers many resources for small business owners. Consider connecting with the following.• Denver Metro Small Business Development Center (SBDC)
• Denver Chamber of Commerce
• Colorado Office of Economic Development and International Trade (OEDIT)
These organizations provide free or low-cost consulting, workshops, networking and mentoring to help you succeed.
Opening a small business in Denver involves more than just a great idea—it takes planning, paperwork and persistence. But with the right guidance and support from local organizations and networks, you can confidently take those first steps toward entrepreneurship. Whether you’re launching a storefront, service or online venture, Denver is a growing city ready to support your business dreams.