How Do I Start a Sole Proprietorship in Colorado?

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Advantages of a Sole Proprietorship

  • Ease of setup and maintenance
  • No formal paperwork required

Starting a Sole Proprietorship in Colorado

  1. Choose a business name
  2. File a Statement of Trade Name of an Individual
  3. Obtain necessary licenses and permits
  4. Understand tax obligations

Obtaining an EIN (Employer Identification Number)

  • Recommended for simplifying tax procedures
  • Not mandatory for sole proprietors without employees

DBA Registration for Sole Proprietors in Colorado

  • Filed at the state level
  • File a Trade Name application with the Colorado Secretary of State
  • Filing fee for sole proprietors is $20

Starting a Sole Proprietorship in Colorado

  • Select a business name that is not identical to existing names
  • Check availability on the Colorado Secretary of State’s website

Costs and Tax Obligations

  • Filing fee for starting a sole proprietorship is $20
  • Sole proprietors must pay state sales taxes on taxable products and services

Business License Requirement

  • Not needed for operating a sole proprietorship in Colorado

If you want to delve further into specific requirements and steps for establishing a sole proprietorship in Colorado, read on for more detailed information.

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