Energy Delivery Services

I had never developed a strategic business plan, an employee handbook, a hiring process, a minority certification process or an operations manual.

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June 2011

Dear Jim, I have just begun a small, 10-machine, vending machine business. What forms do I need to get the proper licenses, registrations, etc? I have been on the tax website and there are far too many things I don't understand. If I could simply get a list of "here's what you need," that would be so helpful.

I truly wish there were such a list. The problem is that there are a large number of variables, such as your location, legal entity, business product or service, and so forth, which change with every new business. So we cannot honestly say, “Just do this” and be sure that is the correct answer for your business. But we do have a solution. I urge you to sign up for the Start-Up Basics class which the SBDC offers every two weeks. Or, you can register for free individual consulting at the SBDC office. Either of these resources can give you the most accurate answer for your specific business.

Dear Jim, I was wondering if you have any statistics on how many female entrepreneurs there are in Denver? This is for a paper I am doing for my journalism class regarding women business leaders in Denver.

This turned out to be a more difficult question than it would first appear. After some research and with the assistance of the US Census Bureau and Leroy Romero at the Colorado Office of Economic Development and International Trade, we came up with these numbers: As of the 2010 Census there were 20,359 women-owned businesses within Denver City limits. The multi-county Denver Metro area has approximately 79,000 women-owned businesses including those in the City.

Dear Jim, In a moment of confusion I am stumped at a probably simple question. If my business location is Arvada and we attend a one-day show in Denver, do I collect state sales tax, Denver city and county taxes? I had an understanding that unless its a multi-day special event you did not have to collect the taxes for Denver since the business isn't located there. Sales in Arvada would be city, county, and state sales tax collection. Outside Arvada would be county and state. Outside my county would just be state sales tax collected unless its a multi day special event. That was my understanding - is that correct?

If you have a booth and are trying to make sales at an event in Denver, then yes, you must collect the city sales taxes. The Single- and Multiple-Event Sales Tax Licenses refer to how many events per year you attend, not to how many days long the events might be. Having a "physical presence" at the event makes a difference. You are right about the sales tax collections when you are selling out of your base location in Arvada and send something to Denver. But that is not the case here. Here, your location, even though it is temporary, is in Denver and you are selling in Denver.

Dear Jim, I have an existing service billing business in Louisville but I would like start a new business that sells products to builders. I have an existing Nevada LLC with a current dba for Clark County, Nevada. Do I need a resale license to start selling products in Colorado? What other licenses do I need? I will probably sell over the phone and may use my existing business location in Louisville, Colorado although it will be a different company.

There are several levels of registration and licensing that you will have to complete depending upon how you set up your business. I can give you a quick summary here but I strongly suggest you attend one of the Start-Up Basics classes offered by the SBDC every two weeks.

  1. If you intend to use the same legal entity as you have in Nevada, you will have to register with the Colorado Secretary of State as a “Foreign Entity.” Go to www.sos.state.co.us to do this. If you intend to start a new entity, you will still have to register with the Secretary of State.
  2. If you are in the city limits in Louisville, you will probably have to get a local business license at city hall. 
  3. Yes, you will have to get a Colorado State Sales Tax License. Complete Form CR 0100 online at the Colorado Department of Revenue to do this or go to 1375 Sherman Street in Denver. Depending upon local regulations, you may also need a sales tax license for the city of Louisville. Again, you should check on this at city hall.
  4. If you are setting up a completely new business, you will also need a Federal EIN, business bank account, insurance and so forth.
Again, I suggest you attend one of the classes.