This checklist is provided by the West/Central Small Business Development Center (SBDC) located in Western State College. A satellite branch based in Salida serves the needs of businesses in Chaffee and Lake County. For further information regarding the Center, please contact us at (719) 530-5613.

This checklist is a quick reference for the Leadville and Lake County area. For a comprehensive and detailed guide to starting a business in Colorado please see the Colorado Business Resource Guide that can be obtained online at www.state.co.us/oed/guide, or through the West/Central SBDC.

Is my business idea feasible?
• Consider writing a business plan. The business plan tells the story of your business. A successful business plan focuses on several key areas such as management, operations, financial plans and supporting documents.
• Analyze your start-up costs and put together a financial plan. There are no government grants for starting a new business, but the U.S. Small Business Administration (SBA) does offer a variety of guaranteed loan programs. The first step in obtaining a government guaranteed loan is to contact a commercial lender. Lenders and investors will want historical, current and future financial documentation such as a cash budget, income statement, a listing of collateral, tax returns, profit and loss projections, cash flow analysis and capital requirements.
• The West/Central SBDC offers business workshops and credit/non-credit classes. We are an excellent resource for shaping your business and financial plans.

What legal structure is best for my business?
• There are several types of legal structures for business organizations. Among them are Sole Proprietorship, Partnership, “C” Corporations, “S” Corporations and Limited Liability Company. Having a discussion with an attorney and tax advisor to determine the advantages, disadvantages, tax impacts and liability issues is a helpful step in the decision making process.
• Once you have decided on the legal structure and trade name for your business you will need to register with the State of Colorado and the City your business will be located in.
• The Colorado Department of Revenue has several business registration forms online. These forms can be found at www.revenue.state.co.us/TPS_Dir/wrap.asp?incl=busregforms .
• For detailed information regarding state registration refer to the Colorado Business Resource Guide, or visit the State of Colorado website at www.colorado.gov under the main category of Business.
• As a Sole Proprietor or Partnership, state business registration can be obtained online at www.revenue.state.co.us/TPS_Dir/wrap.asp?incl=busregforms.
• As a Limited Liability Company (LLC), S-Corp or C-Corp, state business registration can be obtained online at www.sos.state.co.us/pubs/business.
• To register with the City contact that City’s Clerk Office at (719) 486-0349.
• All businesses, except Sole Proprietorships with no employees, are required to have an IRS Federal Employer Identification Number (FEIN). As a Sole Proprietor, your social security number is your (FEIN). You can obtain your FEIN number by filing a completed Form SS-4. This form can be obtained from the IRS by calling 800-829-3676 or on-line at www.irs.gov under Forms.

What taxes will apply to my business?
• Sales and Use Tax: If you buy or sell goods, ship goods, or use merchandise or materials that you purchased tax free, you will be required to collect state and local sales tax and possibly pay state and local use taxes.
• State: The Colorado Department of Revenue provides free sales tax classes. Check the web at www.taxcolorado.com for types of classes offered, dates, times, and locations. No reservations are necessary.
• Local Sales Tax Information: The City Finance Clerk can provide the needed information about local sales tax (719) 486-0349

If I have employees within my business, what are my obligations as an employer?
As an employer, you have the responsibility of compliance with several important laws and regulations. Below are some of the most important. See page 5 of this guide for more detailed information. The Colorado Business Resource Guide is also an excellent resource.

 

• Labor Regulations: Identify which federal and state regulations apply to your business. Call the Colorado Department of Labor and Employment Labor Standards Office for the lists of state and federal laws affecting employment and posting requirements at 303-318-8441 or online at www.coworkforce.com/dwc .
• Withholdings and Deposits: Federal and state income tax, social security (FICA), federal and state unemployment tax (FUTA and SUTA) (see page 4).
• Workers’ Compensation Insurance: Contact an insurance agent or the Division of Workers’ Compensation within the Colorado Department of Labor and Employment at 303-318-8700 or 888-390-7936 or online at www.coworkforce.com/dwc .
• Unemployment Insurance: Contact the Unemployment Insurance Division of the Colorado Department of Labor and Employment at 303-318-9000 or online at www.coworkforce.com/uit.
• The Occupational Safety and Health Administration (OSHA): Safety and health standards fall into four major categories – general industry, maritime, construction and agriculture. Standards are published in the Code of Federal Regulations (CFR) which can be ordered from OSHA at 303-844-1600. The office is located at 1999 Broadway, Suite 1690, in Denver.
• See page 6 of this guide for more detailed information.

What are the local permits and licenses that are required for my industry?
A Retail, Wholesale or Consumer Use Tax License may be obtained through the individual city offices that have been listed in this guide previously.
• Remodeling projects, such as addition of space, alterations of entries, moving of walls or complying with ADA regulations requires approval and building permits. For planning departments in the area call the following for additional information:
  • Leadville (719) 486-2092
  • Lake County (719) 486-1410

What about local zoning and sign regulations?
• For local zoning and signage ordinances contact:
  • Leadville (719) 486-2092
  • Lake County (719) 486-2875
• In order to find the best location for your business. Gather information about traffic patterns (vehicular and pedestrian) to assess sales potential. Information can be obtained from Colorado Department of Highways (303) 757-9488

What if food and liquor is involved?
• Any business related to food must contact the Chaffee County Environmental Services Department. Your business must be inspected prior to opening or with a change in ownership. When you sign a lease or if you are purchasing a business such as a restaurant, the lease or purchase contract should be contingent upon the physical facilities and equipment meeting regional health codes. Because codes change, things, which were allowed prior to the change of ownership may not be allowed with new ownership. There is an annual $50.00 licensing fee required. City sales tax is charged on all food items.
• All plans for new construction or remodeling must be approved by the health department before construction may begin. In Lake County, the Chaffee County Environmental Services, at (719) 539-2124, is in charge of the following areas:
  • Restaurant/Food Service
  • Waste Water Disposal Systems/Solid Waste Disposal
  • Public Swimming Pools
  • Milk Inspections
  • Epidemiological
  • Insect and Rodent / Rabies Control
  • Child Care/Schools
  • Water Quality/Environmental Protection
  • Kennel and Pet Shops
  • Mobile Home Parks
  • Hazardous Substances
• Obtaining a liquor license in Colorado is a privilege and not a right. The process is lengthy and detailed. If you are denied on “need and desires” you cannot reapply for a license for the same location for two years. There is both a state and city license required. The entire licensing process begins with the state and city applications.
• Applications must be approved by the Leadville City Council or Lake County Board of Commissioners. Liquor license categories are as follows:
  • Arts
  • 3.2 Beer
  • Hotel Restaurants
  • Race Track
  • Drug Store
  • Beer/Wine
  • Tavern
  • Club
  • Retail Liquor
  For liquor sales in unincorporated areas contact the Lake County Clerk and Recorder at (719) 486-1410. For liquor sales within Leadville city limits contact (719) 486-0349

Small & Medium Loans: Upper Arkansas Area Devepment Corp; "gap" finaincing and small loans

Medium & Large Loans: CO Housing & Finance Authority (CHFA) Commercial Division Southern Colorado Economic Development District (SCEDD) SAB Loans

Small Business Development Center: Confidential free of charge business counseling Special workshops in Leadville

Colorado Workforce Center: Employer and Job seeker services CMC Business planning and development courses

Upper Arkansas Enterprise Zone: State Tax Credits for exisitng and new businesses.

Colorado Mountin College community enrichment courses--www.cmcneverstoplearning.com Judy Green 719-486-4258.