Need an Answer? We Have Em’ 

1. Define Your Business Idea

Ask yourself:

• What product or service will I offer?

• Who are my customers?

• What problem am I solving?

• Is this idea financially sustainable?

2. Choose a Business Structure

Your business structure determines your legal protections, taxes, and paperwork. In Colorado, the most common options are:

• Sole Proprietorship – simple but no liability protection

• Limited Liability Company (LLC) – flexible and protects personal assets

• Corporation (C-Corp or S-Corp) – best for larger or investor-backed ventures

LLCs are popular among small business owners due to ease of setup and liability protection.

3. Choose & Register Your Business Name

Make sure your name is:

• Unique in Colorado (check availability here)

• Aligned with your branding

• Available as a domain and social media handle

4. Register with the Colorado Secretary of State

All businesses in Colorado must register through the Colorado Secretary of State:

• Register your LLC or Corporation online

• Pay the filing fee (e.g., $50 for an LLC)

• Receive your Certificate of Good Standing and business ID

5. Apply for an EIN (Employer Identification Number)

An EIN is like a Social Security Number for your business. It’s needed for:

• Hiring employees

• Opening a business bank account

• Filing taxes

Apply for free with the IRS: Apply for EIN

6. Obtain Licenses & Permits

Depending on your business type, you may need state or local licenses.

Check:

• Colorado Department of Regulatory Agencies (DORA)
  

• Your city or county government

Examples: food handling permits, childcare licenses, contractor certifications.

7. Register for State Taxes

If your business collects sales tax, has employees, or needs withholding tax registration, visit:

• MyBizColorado

You’ll register with the Colorado Department of Revenue.

8. Open a Business Bank Account

Keep your business and personal finances separate. You’ll need:

• Your EIN

• Your business registration documents

• A government-issued ID

9. Set Up Accounting & Recordkeeping

Good financial habits start on Day 1. Track income, expenses, and employee payroll (if applicable).
Recommended tools: QuickBooks, Wave, or a trusted local accountant.

10. Understand Local Zoning & Home Business Rules

If you’re working from home or operating in a specific area, check with your city or county planning department to ensure your business complies with zoning laws.

Loveland, like other Front Range cities, does not require a general business license. To ensure that your business is supported and in accordance to the State of Colorado, visit the Department of Regulatory Agencies to check if your business needs to be licensed in the State of Colorado.

Visit MyBizColorado to help you establish your business, including name checking.

Business Structures

• Choosing the Right Business Structure – SBA guide on factors to consider when starting a business.

• Business Structures – IRS guide to tax considerations based on your legal structure

• How to Choose the Right Business Structure – breakdown of different options from the U.S. Chamber of Commerce

You do not need a State EIN number. You will need, however, is a federal EIN. That can be found here.

Visit MyBizColorado to start your online registration with other Colorado state agencies.

Overview
The City of Loveland is a home rule city and began administrating and collecting its own sales tax in 1999.

General Information

A sales tax license shall be required for any person who is engaged in the business of selling retail in the City, tangible personal property or services that are taxable. Any business that has two (2) or more separate locations are required to license at each entity. Loveland also does not have a general consumers use tax.

Service only businesses are not required to license.

If the business is in the home, a Home Based License may be required. For more information contact 970.962.2523.

Sales Tax RateThe City of Loveland's sales tax rate is 3.0%, combined with Larimer Counties 0.80% sales tax rate and the State of Colorado's 2.9% sales tax rate, the overall total is 6.70%.

Centerra Fee DistrictBusinesses located in the Centerra Fee districts sales tax rate is 1.75% and is in addition to the district fees. For more information please visit the PIF & RSF Fees page.

Lodging TaxThe City of Loveland's lodging tax rate is 3.0%.

Food For Home Consumption Tax Rate
Prior to January 1, 2024 the City of Loveland's food for home consumption tax rate is 3.0%.

By a substantial margin, Loveland voters approved ballot measure 300, a proposal to eliminate food for home consumption from the City's sales tax collections. This exemption will start January 1, 2024.

The January 2024 return that is due February 20, 2024 will be the first return to have this deduction.

The City of Loveland will adopt the Colorado Department of Revenue’s food for home consumption exemption as it is currently written. Please review Colorado’s C.R.S 39-26-707 and FYI Sales 4 for detailed information.

Special Events
Visit the Special Events page for more information.

Important Things To Know

• There is a $20.00 non-refundable Sales Tax Application fee. Apply online now!

• Licenses are only valid from January 1st to December 31st of each year.

• The annual renewal fee for a sales tax license is $20.00.

• Engaged in business typically means that a vendor sells taxable products at retail and has a business presence, or a physical connection to the City of Loveland, otherwise known as “nexus”.

• A separate Sales Tax License is required for each physical location where a retailer operates a retail business within the City.

• Businesses that have a physical location in the City, but do not sell tangible personal property and/or are a service or wholesale business are not required to have a Sales Tax License.

Collection And Remittance

• Vendors submit sales tax returns according to the reporting period assigned when the sales tax license was issued.

• Vendors may remit taxes monthly, quarterly, or annually depending on the amount of sales.

• Returns are due on or before the 20th day of the month following the reporting period.  If the 20th of the month falls on a weekend or Holiday, the return is due on the next business day.

• All vendors are responsible for timely filing of their sales tax returns.  Returns will be considered late if the postmark date is past the 20th of the month, or the first business day after a weekend or holiday.

• The postmark date must be the official USPS postmark.  Self Metered postmarked dates will not be considered to be valid. 

• If no tax is due, a zero return must be filed.

• Pay online now! 

After You Submit Your Application

Once the application is received by the City:

• It will be reviewed for questions and omissions.

• Applications may be returned to the vendor with a request for more information.

• Completed applications will be processed and the vendor will be emailed a Retail Sales Tax License.

• Allow up to 25 business days for your license.  Applications are typically not processed during the week of the 20th.