Complete guide to permits and licenses required to start a massage therapy in Colorado Springs, CO. Fees, renewal cycles, and agency contacts.
Required for all employers in Colorado to withhold state income tax from employee wages. Registration is done through RevenueOnline. See C.R.S. § 39-22-104.
Required for all LLCs. Online filing available via A&S Online system.
Annual report confirming agent/address info. Applies to all LLCs.
Prerequisites: 500 hours approved education, pass MBLEx exam (minimum 70%), 18+, background check. Required for all practicing therapists.
Required if business has a fixed location. Must have licensed therapist on staff; inspections required. Home-based may qualify.
File Statement of Trade Name. Renews with Periodic Report. Applies to LLCs using DBAs.
Massage therapy services exempt per DR 0106; license needed if selling lotions/oils.
Massage therapy services are generally not subject to sales tax in Colorado unless bundled with taxable items (e.g., aromatherapy oils sold separately). If only providing massage services, no sales tax registration is required. However, if selling tangible personal property, registration is mandatory. See C.R.S. § 39-26-103(1)(a)(I).
All employers in Colorado must register for Unemployment Insurance (UI) tax. The taxable wage base is $13,000 per employee (2024 rate). New employer rate is 1.4%. See C.R.S. § 8-73-106.
As an LLC, the business itself does not pay state income tax unless it elects corporate taxation. Instead, profits pass through to owners who report on personal Colorado income tax returns (Form 104). However, the LLC must file Form DR 0104 annually if it has Colorado-source income. This is an informational return. See C.R.S. § 39-22-103.
Denver imposes an Occupational Privilege Tax on individuals and businesses working or operating within city limits. The tax is based on gross receipts. Massage therapists must register and file annually. Other Colorado cities (e.g., Boulder, Aurora) may have similar taxes—verify locally. See Denver Municipal Code § 5-1-3.
Colorado does not impose a franchise tax or gross receipts tax on general businesses. However, if the LLC elects corporate taxation, it may be subject to Colorado Corporate Income Tax at 4.40% (2024 rate) on net income. Most massage therapy LLCs are pass-through and not subject to this tax. See C.R.S. § 39-22-302.
Massage therapy falls under "Personal Services" license category. See Denver Revised Municipal Code Sec. 12-6
Required for each practitioner; business license separate. Denver RMC Chapter 12, Article VII
Massage establishments require special zoning approval. See Denver Zoning Code Sec. 11.5.8
Limited to 25% of home floor area; no external signage; client visits restricted. Denver Zoning Code Sec. 11.12.4
Required for assembly or business occupancies. Denver Fire Code based on IFC 2018
Freestanding signs limited by zone. Denver Zoning Code Chapter 13
Required for structural, electrical, mechanical changes. Denver Building Code 2018 IBC
Massage therapy specifically listed; Boulder Revised Code Sec. 6-1-1 et seq.
Requires 500 hours training + state registration. B.R.C. Chapter 6-10
Massage establishments classified as Business (B) occupancy. Boulder Fire Code
Simple registration; no annual renewal. El Paso County Code Sec. 6.04
Massage parlors require additional police review. C.C.S. Code Sec. 7-411
Required for all employers with one or more employees in Colorado, including part-time and temporary workers. Sole proprietors without employees are exempt but may elect coverage. Massage therapy is classified under NAICS 621391 with specific premium rates set annually by Pinnacol Assurance or private carriers.
Not statutorily required by Colorado state law for massage therapy businesses. However, many municipalities, landlords, and professional associations require it as a condition of operation. Strongly recommended to protect against third-party injury or property damage claims.
Not legally mandated by Colorado state law or DORA for licensed massage therapists or businesses. However, it is strongly recommended for protection against claims of negligence, improper treatment, or assault. Some private certification bodies or employers may require it.
Colorado does not require a surety bond (such as a license or performance bond) for massage therapy licensure or business operation. The Massage Therapy Board does not list bonding as a condition of licensure for individuals or entities.
Required under Colorado's Financial Responsibility Law (C.R.S. § 42-4-1401 et seq.) for any vehicle used in business operations. Minimum liability limits: $25,000 bodily injury per person, $50,000 per accident, $15,000 property damage. Applies if business owns or regularly uses vehicles for mobile massage services.
Not mandated by Colorado law, but highly recommended if selling skincare products, oils, or supplements. General liability policies may cover product claims, but standalone product liability coverage may be needed for larger volume sales. Regulated under Colorado Consumer Protection Act (C.R.S. § 6-1-101 et seq.) for defective or misleading products.
Only required if the business obtains a liquor license to serve alcohol (e.g., in a spa setting). Most massage therapy businesses do not serve alcohol and are not subject to this requirement. Liquor liability insurance is typically mandated as part of liquor license compliance under C.R.S. Title 12, Article 47.
Single-member LLCs without employees may use the owner's Social Security Number, but obtaining an EIN is recommended for liability protection and banking purposes. All multi-member LLCs must have an EIN.
A single-member LLC is disregarded for federal tax purposes and reports income on Schedule C of Form 1040. Multi-member LLCs are treated as partnerships and must file Form 1065. All owners pay self-employment tax on net earnings unless electing corporate taxation.
Massage therapy businesses must maintain a safe workplace, provide hazard communication training, and post OSHA’s Job Safety and Health Protection poster (available at https://www.osha.gov/poster). Employers with 10 or more employees must keep injury and illness records (Form 300).
Applies to all places of public accommodation, including massage therapy businesses open to the public. Requires physical accessibility (e.g., door width, pathway access) and policy modifications (e.g., service animal access). New construction or alterations must comply with ADA Standards for Accessible Design.
Most massage therapy businesses do not generate reportable hazardous waste. However, if using EPA-regulated chemicals (e.g., glutaraldehyde-based disinfectants), the business may be classified as a Small Quantity Generator (SQG) and must comply with storage, labeling, and disposal rules under RCRA.
Applies to all businesses engaged in commerce. Massage therapy businesses must ensure advertising is truthful, not misleading, and substantiated (e.g., claims about health benefits must be backed by scientific evidence). Required disclosures include "material connections" (e.g., paid endorsements) under FTC Endorsement Guidelines.
All U.S. employers must complete Form I-9 to verify identity and work authorization. Employers must retain I-9 forms for 3 years after hire date or 1 year after employment ends, whichever is later.
Massage therapists classified as employees must be paid at least federal minimum wage ($7.25/hour) and overtime (1.5x regular rate for hours over 40/week). Independent contractors are not covered under FLSA. Misclassification can lead to significant liability.
Requires eligible employees (12 months with employer, 1,250 hours in past year) to receive up to 12 weeks of unpaid, job-protected leave for qualifying medical or family reasons. Most small massage therapy LLCs do not meet the 50-employee threshold.
No federal licensing body oversees massage therapy. Regulation is handled at the state level (in Colorado, by the Colorado Department of Regulatory Agencies). FDA regulates products (e.g., lotions, devices) but not the practice. No ATF, FCC, or DOT requirements apply to standard massage therapy operations.
All individuals performing massage must hold a current Colorado license. Business owners must ensure compliance even if not personally licensed. No reciprocity with all states.
Sole proprietors may exempt themselves but must still register. Independent contractors are not covered and must be properly classified.
Most massage services are non-taxable, but retail sales of products are subject to sales tax. Must register with CDOR.
Required in most incorporated cities and some counties. Check with local government.
As an LLC, you’ll likely have Federal Income Tax obligations, and potentially Self-Employment Tax obligations, which are managed through the Internal Revenue Service (IRS). The exact amount varies based on your income and deductions, and you may need to file as a disregarded entity or partnership.
Yes, a Surety Bond (License Bond) is required, typically ranging from $100.00 to $500.00, and is overseen by the Colorado Bureau of Investigation and the Colorado Department of Public Safety.
ADA Title III compliance ensures your business is accessible to individuals with disabilities, covering aspects like physical access, communication, and auxiliary aids. Costs for compliance can vary significantly, ranging from $1000.00 to $20000.00, and are enforced by the Department of Justice.
The initial cost of forming a Colorado LLC by filing Articles of Organization with the Colorado Secretary of State is $50.00. There are also ongoing requirements like the Periodic Report, which has a $10.00 fee.
Yes, the Federal Trade Commission (FTC) regulates massage therapy businesses, particularly regarding advertising and consumer protection. Compliance with FTC rules is required, and associated fees can vary depending on the specifics of your business and advertising practices.
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