Tax Preparer Permits & Licenses in Lakewood, CO

All LLCs must file Articles of Organization. Annual Periodic Report required separately (see below). Fees current as of 2024.

Required for all LLCs to maintain good standing. Online filing mandatory.

Registration valid for 5 years, renewable. Not required if using exact LLC name.

Tax preparation services are typically not subject to sales tax per DR 0101.16 (https://tax.colorado.gov/dr-0101-16). License required only if applicable.

Required for LLCs with employees. Online account setup via Revenue Online.

Quarterly contributions required after registration.

Tax preparation services themselves are not subject to Colorado sales tax. However, if the business sells taxable items (e.g., tax forms, software), a sales tax license is required. Most tax preparers do not need this unless they sell physical products.

Required for employers who withhold state income tax from employee wages. Applies only if the LLC hires staff.

All employers with employees in Colorado must register for Unemployment Insurance (UI) tax. Independent contractors are not counted.

Required by IRS even for single-member LLCs that elect corporate taxation or hire employees. Obtained via IRS Form SS-4 or online.

By default, a single-member LLC is disregarded (reported on owner's personal return); multi-member LLCs are treated as partnerships. Must file appropriate federal return annually regardless of income.

All businesses owning personal property must file a declaration with the county assessor where property is located. Required even if no tax is due after deductions.

Required for all LLCs operating in Colorado. Includes initial filing of Articles of Organization. Ongoing requirement to file periodic reports every year ($25 fee).

Required for all LLCs to remain in good standing. Must be filed each year regardless of activity level.

Not all jurisdictions require this. For example, Denver requires a Business License; Boulder has a Business Tax License. Check with local city clerk or treasurer’s office.

Tax preparers are not typically subject to federal excise taxes. This does not apply unless the business engages in specialized industries.

Colorado does not have a franchise tax or gross receipts tax. Business income is subject to Colorado income tax via owner's personal return (pass-through) or corporate return if elected.

Required for any individual or firm that prepares federal tax returns for pay, regardless of LLC structure. Must be renewed yearly.

Most tax preparers do not sell taxable goods, but if they do, they must use Form DR 0105 to document exemption. Keep on file for 4 years.

Tax preparers classified under "Professional Services" (code 812199); apply online via Denver Business Licensing portal

Professional offices generally permitted in commercial/office zones (DZC Sec. 11.4.2); verify via Denver Zoning Map

Tax preparation allowed as home occupation if <25% floor area used, no client visits (DZC Sec. 11.12.4)

Freestanding/wall signs regulated by DZC Article 10; electronic signs restricted

Business occupancy (Group B) requires life safety inspection (2018 IFC as amended)

Simple registration; no annual renewal. Cities like Colorado Springs have separate requirements

Professional services license required; sales tax license separate via COS Sales Tax

Permitted in CN, CG, CH zones; home occupation allowed with limits (City Code 14-13)

General Business" license; tax preparers report annual receipts for fee calculation

No general business license; sales tax license required if applicable. Check municipal overlays

Colorado law requires all employers with one or more employees to carry workers' compensation insurance, including part-time and minor employees. Sole proprietors without employees are exempt from this requirement. Coverage must be obtained through a private insurer or self-insurance (if approved).

While not legally mandated by Colorado or the IRS for all tax preparers, E&O insurance is required as an alternative to a surety bond for unenrolled preparers participating in the IRS AFSP. Minimum coverage: $100,000 per return, $200,000 aggregate. Not required for enrolled agents, CPAs, or attorneys who are automatically credentialed.

Unenrolled tax preparers who wish to participate in the IRS AFSP must either post a $1,000 surety bond with the IRS or carry $100,000/$200,000 E&O insurance. The bond is filed using Form 8988. Enrolled agents, CPAs, and attorneys are exempt. Not a Colorado state requirement.

Colorado does not mandate general liability insurance for tax preparation businesses. However, commercial landlords or local governments may require it as a condition of occupancy. Strongly recommended to protect against third-party injury or property damage claims.

Colorado law requires all motor vehicles operated on public roads to be covered by liability insurance meeting minimum limits: $25,000 bodily injury per person, $50,000 per accident, $15,000 property damage. If a business owns or regularly uses a vehicle for tax preparation (e.g., client visits), commercial auto insurance is required. Personal policies do not cover business use.

Colorado does not require a state-level surety bond or license bond for tax preparers. The IRS regulates tax preparer conduct federally, and no DORA license or bonding is required for tax preparation services alone. This distinguishes Colorado from states with stricter occupational licensing.

Colorado does not legally require product liability insurance. However, if a tax preparer sells physical products (e.g., tax preparation software, printed materials), they assume liability for defects. While not mandated, such coverage is strongly recommended. No state agency enforces this as a requirement.

Only applicable if the business operates a venue where alcohol is sold or served. Tax preparation offices are not expected to serve alcohol; this would only apply in rare hybrid models (e.g., tax services in a bar). Requires a liquor license from the Division of Excise and Enforcement.

Required for all LLCs, including single-member LLCs that are disregarded entities. Used for federal tax filing, banking, and payroll reporting. Even if no employees, an EIN is required for a multi-member LLC or if the LLC elects corporate taxation.

Single-member LLCs report income on Schedule C of the owner’s Form 1040. Multi-member LLCs file Form 1065 (partnership return). Tax preparer services do not change this requirement, but accuracy in reporting client fees is critical.

Applies to owners of single-member LLCs. Multi-member LLC members also subject to self-employment tax on distributive share. Tax preparers must accurately report their own income and may be liable for underpayment if not compliant.

All paid tax preparers must comply with Treasury Department Circular 230, which governs standards of practice, due diligence, record retention, and ethical conduct. Includes requirement to sign returns, include PTIN, and maintain competency. Applies regardless of state or credential status.

Required for all individuals who prepare or assist in preparing federal tax returns for pay. Must be renewed annually. Tax preparers in an LLC must each have their own PTIN. Fee set by IRS contract with provider (currently IRS-authorized third party).

Paid tax preparers must retain a copy of each return prepared and signed by the client for at least three years. Applies regardless of electronic or paper format. Required under IRS Circular 230 §10.22.

This requirement applies only if the LLC issues information returns (e.g., to independent contractors), not merely for preparing client tax returns.

Applies to all employers in the U.S., including LLCs. Required for every employee, regardless of citizenship. Tax preparers with employees must comply. Independent contractors do not require I-9.

Requires minimum wage, overtime pay (1.5x regular rate after 40 hours/week), and proper recordkeeping. Applies to tax preparer businesses with employees. Independent contractors are not covered.

Requires eligible employees to be granted up to 12 weeks of unpaid, job-protected leave for qualifying reasons. Not applicable to most small tax preparer firms unless seasonal staffing exceeds threshold.

Prohibits employment discrimination based on disability. Requires reasonable accommodations. Applies only when employer has 15+ employees. Tax preparer LLCs with fewer employees are exempt.

FTC enforces truth-in-advertising rules. Tax preparers must have evidence to back claims (e.g., “highest refunds” or “IRS-approved”). Prohibited from making false or unsubstantiated claims. Applies to websites, social media, and print ads.

Most tax preparer offices are exempt from routine inspections under OSHA’s small office exemption. However, employers must still provide a workplace free from recognized hazards and post OSHA poster (available free online). Applies only if employees are present.

EPA requirements do not apply to standard office-based tax preparation services.

The IRS does not issue a federal business license for tax preparers. However, a PTIN is required for individuals preparing returns for compensation. No federal agency requires a general business license for tax preparation at the federal level.

All Colorado LLCs must file an Annual Report with the Secretary of State to remain in good standing. Failure to file may result in loss of liability protection and administrative dissolution.

LLCs with Colorado-sourced income or employees must register with CDOR and file quarterly estimated tax payments. Multi-member LLCs pass through income to members.

Requires employers to withhold and remit employee contributions. Provides up to 12 weeks of paid leave. Does not apply to independent contractors.