Complete guide to permits and licenses required to start a general contractor in Denver, CO. Fees, renewal cycles, and agency contacts.
All LLCs must file Articles of Organization; annual Periodic Report required separately
Required for all LLCs to maintain good standing
Registration valid 5 years; renewal required
General contractors often sell materials; monthly/quarterly filing required based on revenue
Colorado does not require a statewide general contractor license as of 2024
Requires workers' comp coverage proof and good standing; renewed annually by June 30
All employers in Colorado must register for withholding tax, even if only one employee is hired. This includes the owner if on payroll. Registration is required before the first payroll is processed.
Employers must register with the Colorado Unemployment Insurance program. Employers pay unemployment insurance tax on the first $14,000 of wages per employee annually (as of 2024). New employers are assigned a rate of 0.09% for the first year.
Colorado does not require separate state income tax registration for LLCs. Business income is reported on the owners' Colorado Individual Income Tax returns (Form 104). However, if the LLC elects corporate taxation, Form 1120-COR must be filed annually.
Most cities and counties in Colorado require a local business license or privilege tax for contractors. Examples include Denver, Aurora, Colorado Springs, and Fort Collins. Fees and requirements vary. Contractors may also need to register with local building departments or obtain contractor-specific permits.
Colorado law requires all employers with one or more employees to carry workers' compensation insurance. General contractors are high-risk and typically face higher premiums. Sole proprietors without employees may opt out, but must file an affidavit.
Required for LLCs with employees or multiple members. Single-member LLCs without employees may use owner’s SSN, but EIN is recommended for liability protection. Apply online via IRS website.
All general contractors in Colorado must register with DORA’s Division of Professions and Registrations. This is not a tax but a mandatory registration. Includes providing proof of liability insurance and, if applicable, passing a trade exam. Renewed every three years.
General contractors require a specific "Contractor" license category. See Denver Revised Municipal Code Sec. 49-1 et seq.
Required for office or yard space; contractors must comply with I-1/I-2 industrial zoning districts. Denver Zoning Code Sec. 11-104.
Required for office build-out, storage yards, or shops. Denver Building Code based on IBC 2018.
Wall signs up to 200 sq ft allowed in industrial zones. Zoning Code Sec. 13-121.
Required for contractor yards storing flammable materials. Denver Fire Code Sec. 105.
Mandatory registration for all commercial alarms. Denver Municipal Code Sec. 49-341.
General contractors specifically listed as requiring license. Arapahoe County Code Sec. 6-1.
Mandatory for general contractors; requires qualifier exam/insurance proof. Pikes Peak Code Sec. 120-214.
Contractor offices/yards permitted in C-5, I-1 zones with review. City Code Sec. 14-6-102.
Combined with business personal property declaration. County Resolution 2016-108.
Limited to administrative work only; no storage of equipment. Land Use Code Sec. 10-301.
Mandatory for all employers with one or more employees in Colorado, including LLC members who perform work. Sole proprietors with no employees are exempt unless they contract with a general contractor who requires coverage. Coverage must be obtained through private insurance or self-insurance approved by the state.
While not mandated by Colorado state law, most general contractors carry general liability insurance to meet contractual obligations, obtain permits, or qualify for bonding. Some cities (e.g., Denver) may require proof for business licensing.
Colorado does not have a statewide contractor license for general contractors. However, many municipalities (e.g., Denver, Aurora, Boulder) require a surety bond (typically $10,000–$25,000) as part of local business licensing. State public works projects may require performance and payment bonds under C.R.S. § 24-106-113.
Required for all business-owned vehicles under Colorado's compulsory auto insurance law (C.R.S. § 42-4-101). Minimum liability limits: $25,000 bodily injury per person, $50,000 per accident, $15,000 property damage. Applies even if vehicles are leased.
Not mandated by Colorado law for general contractors. However, may be required for design-build projects or when providing engineering or architectural services. Strongly recommended to protect against claims of negligence or faulty workmanship.
Not a statutory requirement in Colorado. However, if a general contractor sells tangible goods (e.g., custom cabinetry, windows), product liability exposure exists. Coverage typically falls under general liability insurance but may require additional endorsement.
Only applicable if the contractor holds a liquor license (e.g., for events or hospitality projects). General contractors not involved in alcohol service are not required to carry this insurance.
While not required for all single-member LLCs with no employees, most general contractors obtain an EIN for banking and contracting purposes. 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 are taxed as partnerships and file Form 1065. Profits pass through to members' individual returns. General contractors must also pay self-employment tax on net earnings.
General contractors must comply with OSHA construction standards (29 CFR 1926), including fall protection, scaffolding, electrical safety, and hazard communication. Employers must provide training, maintain injury logs (OSHA Form 300 if 11+ employees), and post the OSHA Job Safety and Health poster.
General contractors must ensure new construction or alterations comply with the 2010 ADA Standards for Accessible Design. Contractors are responsible for proper implementation even if not the designer. Applies to facilities open to the public (e.g., retail, offices, restaurants).
Required for general contractors disturbing more than 6 square feet of painted interior surfaces or 20 square feet exterior. Includes firm certification, use of certified renovators, lead-safe work practices, and recordkeeping. Does not apply to new construction.
Requires clear, written contracts for home improvements, including start/completion dates, payment schedules, and a 3-day right to cancel for door-to-door sales. Prohibits deceptive advertising and false claims about licensing or affiliation.
All employers, including general contractor LLCs, must complete Form I-9 for each employee to verify identity and work authorization. E-Verify is not federally mandated for all employers but may be required by state law or federal contracts.
General contractors must comply with federal minimum wage ($7.25/hour), overtime (1.5x regular rate after 40 hours/week), and child labor rules. Independent contractor classification must meet FLSA criteria to avoid misclassification penalties.
Requires eligible employees to be granted up to 12 weeks of unpaid, job-protected leave for qualifying medical or family reasons. Posting and recordkeeping requirements apply.
General contractors in construction are not exempt. Requires maintaining OSHA Form 300 (Log of Work-Related Injuries), Form 301 (Incident Report), and posting Form 300A summary. Electronic submission may be required based on size and industry.
Denver does not have a general business license requirement, but specific permits are needed for projects like building, electrical, plumbing, and mechanical work, depending on the scope of the project.
As an LLC, you'll need to fulfill federal income and self-employment tax obligations through the IRS, and the associated fees vary depending on your income and deductions; you must also file your taxes.
The initial registration fee with the Colorado Secretary of State is $50.00, and you'll also need to file an annual periodic report for $10.00 to maintain good standing.
While not mandated by the state government, professional liability insurance (Errors & Omissions) is highly recommended and typically costs between $500.00 and $1500.00 annually to protect your business from potential lawsuits.
The Federal Trade Commission (FTC) requires compliance with truth-in-advertising and consumer protection laws, and potentially the Home Improvement Rule, ensuring fair and accurate business practices.
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