Barber / Cosmetology Permits & Licenses in Denver, CO

Required for all retail/service businesses per City Code Sec. 7-401

Per Colorado Springs City Code Chapter 14, Article III

Unincorporated areas only; cities like Colorado Springs have separate requirements

Required for all LLCs; online filing via Atyim system recommended

Required for all LLCs; filed online

Requires 1,500 hours training at approved school + passing written/practical exams

All shops/studios must be licensed; requires licensed manager + inspections

Required if using DBA; renewable; county publication may also be required

Many barber shops sell retail products requiring this license

Required in all municipalities where the business operates; check local jurisdiction for specifics

Barber and cosmetology services are generally exempt from Colorado sales tax, but the sale of tangible personal property (e.g., shampoos, conditioners, combs) is taxable. A sales tax license is required if selling such items. Registration is done through the Colorado Revenue Online (CRO) system.

All employers in Colorado must register for income tax withholding. This includes withholding state income tax from employee wages. Registration is completed via the Colorado Revenue Online (CRO) system.

Employers must pay Unemployment Insurance (UI) tax on the first $14,000 of wages per employee annually. The tax rate varies based on experience rating. Registration is done through the CDLE Employer Services portal.

While Colorado does not impose a corporate income tax, LLCs are pass-through entities. Owners must report business income on their personal Colorado income tax returns (Form 104). This is a personal obligation, but the business structure necessitates accurate reporting. Due date aligns with federal deadlines.

All LLCs with employees or multiple members must obtain an EIN. Single-member LLCs without employees may use the owner’s SSN, but an EIN is recommended. Required for opening a business bank account and tax reporting.

Many Colorado cities (e.g., Denver, Aurora, Colorado Springs) require a local business license or pay a privilege tax. Requirements vary by location. For example, Denver requires a Retailers' Occupational License for businesses selling goods or services. Verify with the city or county clerk where the business is located.

Owners of a single-member LLC are treated as sole proprietors for federal tax purposes. They must pay self-employment tax (15.3% for Social Security and Medicare) and file Schedule C with Form 1040. Quarterly estimated tax payments are required if tax liability exceeds $1,000.

Colorado does not impose a franchise tax or gross receipts tax on LLCs. LLCs are subject to federal and state income tax pass-through rules only. Corporations are subject to Colorado Corporate Income Tax, but not LLCs.

Specific "Barber Shop" or "Cosmetology Establishment" license required under Denver Revised Municipal Code Chapter 12

Barber shops permitted in C-CCN, C-MX-3, and other commercial zones per Denver Zoning Code Article III

Required for tenant improvements per Denver Building Code (2021 IBC)

Maximum 1.5 sq ft per linear foot of building frontage per Denver Zoning Code 13.1.4.10

Required for assembly/business occupancies per 2021 Fire Code

Issued after final building and fire inspections

Required per 2021 Fire Code Section 907

Personal Services" license covers barber/cosmetology per Aurora Municipal Code 2-6-1

Barber/cosmetology limited to 25% of home; 1 non-resident employee max per Zoning Code 11.7.4

Exemptions may apply for sole proprietors and partners in an LLC who do not draw a salary and file a proper exemption form (Form WCC-2). Corporations may exempt officers under certain conditions. Barbers are classified under NAICS 621112 and risk code 0917 for premium calculation.

Not legally required by the State of Colorado for barbers or cosmetology businesses. However, landlords, lenders, or professional associations may require it. Strongly recommended to cover slip-and-fall accidents or property damage.

Not mandated by Colorado law or DORA for barber or cosmetology licenses. However, recommended to cover claims of negligence, allergic reactions, or improper service. Not a substitute for workers' comp or general liability.

A $10,000 surety bond is required for all barber shop and cosmetology salon licenses in Colorado. Applies to the business entity operating the shop. Bond must be issued by a surety licensed in Colorado. See DORA's 'Guidelines for Barbering and Cosmetology' (October 2023) for details.

Required if business owns or operates a vehicle under its name. Personal auto policies do not cover business use. Applies to mobile barber services. Colorado law requires minimum liability coverage of $25,000 bodily injury per person, $50,000 per accident, and $15,000 for property damage (25/50/15).

No specific product liability insurance mandate for selling hair care products in Colorado. However, businesses selling retail products assume liability risk. Coverage is typically included in broader general liability policies. Not a standalone legal requirement.

Only required if the barber shop holds a liquor license, which is extremely rare. Most barber shops do not serve alcohol. If alcohol is served, liquor liability insurance is mandatory and must meet state requirements. General liability does not cover alcohol-related incidents.

While not all single-member LLCs without employees need an EIN, most barbershops will need one to open a business bank account, hire employees, or comply with state tax registration. IRS Form SS-4 is used to apply.

A single-member LLC is disregarded for federal tax purposes and reports income on Schedule C (Form 1040). Multi-member LLCs file Form 1065 and issue K-1s. All net earnings subject to self-employment tax.

Applies only to businesses with employees. Barbershops must comply with OSHA’s General Duty Clause to provide a safe workplace. Specific concerns include exposure to bloodborne pathogens (if performing skin-breaking services), chemical safety (hair dyes, disinfectants), and proper ventilation. OSHA’s Hazard Communication Standard (29 CFR 1910.1200) applies to use of hazardous chemicals.

While most barbering is low-risk, if services involve shaving with open cuts or nicks, OSHA considers barbers at risk. Requires written exposure control plan, training, PPE, and proper disposal of contaminated materials. Applies only if employees are present.

Applies to all places of public accommodation, including barbershops. Requires physical accessibility (ramps, door widths, accessible restrooms), accessible appointment systems, and communication with people with disabilities. Even small businesses must comply. No exemption based on size or revenue.

FTC enforces truth-in-advertising rules. Barbershops must avoid false claims (e.g., “FDA-approved shampoo” — FDA does not approve cosmetics). Must disclose material connections (e.g., paid endorsements). Applies to websites, social media, and promotional materials.

Requires payment of federal minimum wage ($7.25/hour), overtime (1.5x regular rate for hours over 40/week), and proper recordkeeping. Tipped employees (e.g., shampoo assistants) may be paid $2.13/hour if tips bring total to at least $7.25. Barbers paid by commission or chair rental must still meet FLSA standards if classified as employees.

All employers must verify identity and work authorization using Form I-9. Applies to all employees, including citizens. Employers must retain Form I-9 for 3 years after hire or 1 year after employment ends, whichever is later.

Requires eligible employees (12 months with employer, 1,250 hours in past year) to be granted up to 12 weeks of unpaid, job-protected leave for qualifying reasons. Most small barbershops (under 50 employees) are exempt.

Most barbershops are Conditionally Exempt Small Quantity Generators (CESQG) and exempt from federal regulation if under threshold. However, some disinfectants (e.g., those containing quaternary ammonium compounds) may be regulated if disposed of improperly. State rules (Colorado) may be stricter.

FDA regulates cosmetics used in barbershops. Products must be safe, properly labeled, and not adulterated. No pre-market approval, but FDA can take action against unsafe products. Devices (e.g., clippers) must be safe and not misbranded. No federal license required, but compliance with labeling and safety rules is mandatory.