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Have you thought of starting a business in Colorado? With its diverse population [by 2023 data, it is 5,997,070], thriving industries, and supportive business environment, Colorado has become a hotbed for innovation and growth. Whether you have a revolutionary idea, a passion for a particular industry, or are simply seeking an opportunity to be your own boss, there is no better time to explore the best businesses to start in Colorado. When it comes to starting a business, it is necessary to decide on the structure first. You can form a corporation, a sole proprietorship, a partnership, or can create an LLC in Colorado.
In this article, we will delve into the various industries that are currently flourishing in Colorado and highlight the top business opportunities within each sector. From eco-friendly ventures to tech start-ups and from healthcare to hospitality, we will provide valuable insights and guidance on identifying the most promising and best businesses to start in Colorado. So, if you’re ready to take the plunge and embark on an entrepreneurial journey, read on and get inspired!
On this page, you’ll learn about the following:
- Why Start a Business in Colorado?
- The Best Businesses to Start in Colorado
- What to Do After Deciding on a Business To Start in Colorado
Why Start a Business in Colorado?
There are many reasons why many individuals would want to start a business in Colorado. With its gentle climate and being one of the most populated states in the U.S., it has excellent conditions for businesses to thrive. That’s the main reason plenty of retail establishments operate in the state.
On a different note, Colorado is also one of the technologically advanced states in the U.S. that shows more accessible means of accounting, product development, manufacturing, and delivering products to customers on top of easy access to fully utilizing the supply and demand chain in the big market. This is also one of the reasons why the e-commerce industry is also booming in the state.
Now that we have mentioned all the positive attributes of why the state is excellent for starting a business, it’s time to discuss the top 5 best businesses in the state to venture into. Let’s get to it.
The Best Businesses to Start in Colorado
In Colorado, the overall business environment is quite friendly. For a beginner, starting a business with fewer close competitors is always wise. For example, local products, food businesses, or something similar that is highly in demand, yet cost-effective in Colorado. Here are the best businesses in Colorado that can be a good option to start with-
1. Professional, Scientific, and Technology Services
If you plan to set up a business in Colorado, Professional, Scientific, and Technology Services will be the best option. The Professional, Scientific, and Technology Services sector has developed significantly across the state in recent years. As far as the cost of the business is concerned, it is comparatively cheaper as Colorado provides tax benefits to the start-ups. Besides, if you start an LLC for your Professional, Scientific, and Technology Services business, you can enjoy pass-through taxation and other benefits.
2. Real Estate, Rental, and Leasing
Real Estate, Rental, and Leasing is in the second position when it comes to the best business list in Colorado. If you’re in Denver that is the state’s capital, having this business can make a lot of difference to your career and revenue. Real Estate, Rental, and Leasing is highly in demand in Colorado and cost-effective. So, if you are planning to set up your own business in Colorado, Real Estate, Rental, and Leasing can be a smart option.
In Colorado, setting up Construction is easy and perfect for the ones who are looking for long-term business. Every year, more than thousands of entrepreneurs set up this business in Colorado. Colorado government offers subsidies for the ones starting business in Colorado. If you hire people in your company, you might get employment benefits for providing job opportunities.
The next one is Retail to start in Colorado. As we know, Colorado is one of those states that provide good infrastructure to start any business at any cost. Hence, starting a Retail business is also not difficult. To start this business, check with the state and local government for licenses and permits.
5. Health Care and Social Assistance
Finally, you can start Health Care and Social Assistance business in Colorado. Though it is in the 5th position, it has high potential in Colorado. It is common, and the best part of starting Health Care and Social Assistance is the availability of initial raw materials (basic production material) in Colorado. Hence, you don’t need huge initial capital to start this business.
These are the 5 best businesses LLCBuddy Team shortlisted as the best to start in Colorado. Compared to other businesses, these businesses have a huge demand for their services and worth and don’t have high start-up costs.
What to Do After Deciding on a Business To Start in Colorado
After everything has been decided, it’s time to start the legal proceedings to successfully launch your business in Colorado. You must choose a legal business structure, for example, a limited liability company (LLC), a corporation, a partnership, a sole proprietorship, etc. While this may vary between states, the typical processes are as follows:
Deciding on a Legal Structure
First, you must decide what type of business structure you want for your business. You can protect your personal assets from your business liabilities by forming an LLC in Colorado. Besides, you can start a sole proprietorship or an S-corp if you want to set up a small business.
Choosing a Business Name
The next step is to get a business name. Ensure you get a name not used by any other entity in the state. If you plan to start an LLC in Colorado, you can check the Colorado LLC name guidelines and search process before you name your business.
Get Your Colorado Registered Agent
This is one of the most crucial steps in forming any business in Colorado. You must get a legit Registered Agent for your business. The Colorado Registered Agent is a person responsible for handling your official and legal documents on your behalf. Ensure your Registered Agent has rights to conduct business in Colorado and they have a physical address anywhere in the state.
Registering your Business Entity
After assigning the Registered Agent, you must register your business. If you are forming a corporation, you must file the Colorado Articles of Incorporation. On the other hand, if you are forming an LLC, you must file Colorado Articles of Organization with the Colorado Secretary of State. You can file it online or offline, whichever is available for you.
Once your business is registered (if registered as an LLC), you might need to prepare an operating agreement. The Colorado LLC operating agreement may or may not be required for LLCs. You must check with the Colorado Secretary of State for more details. On the other hand, if you registered your business as a corporation, you must hold a first board meeting with the initial directors and partners of the company.
After Setting up Your Business in Colorado
As soon as you set up your business in Colorado, you must consider the following points-
- Applying for Licenses and permits: The next step is to apply for the licenses and permits in Colorado. Based on the nature of your business, license and permits are required to obtain. Checking with the local county/city authority for special licenses is recommended.
- Register for Required Colorado Taxes: Once you file your business, apply for state and federal taxes. For that, you must apply to obtain an Employment Identification Number (EIN). To obtain an EIN, you must apply online, by mail, or by fax to IRS. Before you apply for your EIN, check if your business needs to obtain EIN.
- Obtaining Business Insurance: Protecting your business from any unpleasant events or losses is required. In that case, you should obtain business insurance. If you hire employees in your company, you must get employee coverage to protect them.
- Opening a Business Bank Account: Finally, get a business bank account to separate your business and personal transactions. Having a business bank account can improve your credit score. That brings more credit and loan opportunities to your business.
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Before pulling the trigger, don’t forget that self-assessment is also important. Take into account your available resources, interests, and long-term objectives. Having said that, practically every industry may prosper with the appropriate combination of grit, drive, and talent. Hence, before you select the type of business, make sure you have the proper expertise to run it. Also, it is recommended to consult a legal expert before you take any decision.