• Every business in Colorado will need some kind of license or permit to operatebusiness plan 2 image by Kelly Young from Fotolia.com
  
  Small businesses have been the foundation of the U.S. economy since the country began. Today each state requires several steps for people to achieve the goal of starting a small business. Colorado is no different and has requirements that need to be met before a person can open a small business. The state provides assistance and guidelines in order to begin conducting business.
  
  

Business Name

• Every business that operates in Colorado will be required to get a business license or permit. Even sole proprietorships will need some sort of license from the county or city where the business will be operated. The first thing a person must do is file his business name or trade name with the Colorado Department of Revenue. The main reason is to ensure that the business name is not being used by another entity or business. A business cannot use the same name as an established business in Colorado for tax purposes.
  
  

Register Business

• Even a small business in Colorado needs to register with the state. This is required for the business to pay state taxes on its products or services, withhold earnings and disability or unemployment insurance payments. The Colorado sales tax is currently 2.9 percent, but each county and city sets additional sales tax percentages. Once a business is registered, the state will determine how much sales tax must be charged by the company.
  
  

Federal Employer's Identification Number

• Every business that plans on hiring an employee must get a Federal Employer's Identification Number (EIN). The business needs to contact the Internal Revenue Service (IRS) and file the paperwork in order to get the EIN. This can be done by visiting the IRS website and filling out the forms online. The business will also need to request forms such as the W-4, SS-4, Circular E and Publication 334. This will all need to be done even if the business hires only one employee.