Starting a business in Colorado? Congratulations! While you're focused on growing your venture, understanding your tax obligations is crucial for staying compliant and avoiding surprises. We've put together this straightforward guide to help you navigate the five most common taxes Colorado businesses face.
The Big Five: Colorado Business Taxes at a Glance
Every Colorado business needs to be aware of these key tax categories. Don't worry—once you understand what's required and when, managing these becomes part of your regular business rhythm. And if you'd rather focus on growing your business than managing tax compliance? We handle all of these for our clients.
1. Income Taxes: Your Annual Business Filing
When it's due: March 15 for the prior calendar year (with extension available to September 15)
Your business income tax return is an annual filing that reports your company's profits and losses. If you're operating as a partnership, LLC, or S-Corporation, you'll receive a K-1 from this filing that flows through to your personal tax return. C-Corporations have a different deadline—April 15 (with extension to October 15)—though they're less common for small businesses.
Working with a tax professional makes this process much smoother. They'll handle the heavy lifting while keeping you informed about what information they need from you.
2. Sales Taxes: Your Regular Revenue Responsibility
When it's due: The 20th of the month following your filing period
- Monthly filers: Every month on the 20th
- Quarterly filers: April 20, July 20, October 20, and January 20
- Annual filers (very small retailers): January 20
Sales tax applies to both state and city levels. The good news is that Colorado has streamlined this process with the Sales and Use Tax System (SUTS), where you can file your state sales tax return and most city returns in one place. For cities not yet on SUTS, you'll need to register for your local municipality's portal.
Here's what many business owners find helpful: Set a recurring calendar reminder for a few days before your due date. This gives you time to gather your sales data and file without rushing.
3. Payroll Taxes: Managing Your Team's Obligations
When payments are due: Varies by payroll size (typically the 15th of the following month for smaller employers)
When returns are due:
- Quarterly returns: Last day of the month following quarter-end (April 30, July 31, October 31, January 31)
- Annual filings and W-2s: January 31
Payroll taxes can feel overwhelming, but they break down into manageable pieces:
- Federal and state income withholding
- Federal and state unemployment insurance
- Colorado's Family and Medical Leave Insurance (FAMLI)
Most businesses work with a payroll service provider who handles these filings and payments. It's worth the investment for peace of mind and compliance.
4. Use Taxes: The Often-Forgotten Obligation
When it's due: Initial return when starting your business, then ongoing as needed
Here's the one that catches many new business owners off guard. Use tax is essentially sales tax on items you purchased without paying sales tax—think Facebook Marketplace purchases, out-of-state online orders, or private party sales.
Colorado requires an initial use tax return when you start your business. After that, you'll report use tax regularly (often with your sales tax filings). Our advice? Keep a simple spreadsheet of any business purchases where you didn't pay sales tax. When filing time comes, you'll have everything ready.
5. Personal Property Taxes: Not Just for Real Estate
When it's due: April 15 annually to your county
Despite the name, this isn't about your personal belongings. Business personal property tax covers equipment, furniture, and other tangible assets your business owns (not inventory).
The good news? If your total business personal property is valued under $56,000 (this threshold adjusts annually), you're exempt. Individual items under $350 don't need to be reported either. For many small businesses, this results in a minimal tax bill—often under $100 if you owe anything at all.
Making Tax Compliance Manageable
We know this might feel like a lot to track. Here are some practical steps to stay on top of your obligations:
- Create a tax calendar with all your due dates marked
- Keep detailed records throughout the year—don't wait until filing deadlines
- Set up separate folders (digital or physical) for each tax type
- Build your support team early with professionals who understand your industry
You Don't Have to Navigate This Alone
Understanding your tax obligations is the first step toward confident business ownership. While this guide covers the basics, every business situation is unique. Working with experienced advisors ensures you're not just compliant, but also taking advantage of every opportunity to minimize your tax burden legally.
At Bravuura Advisory, we help Colorado businesses navigate these requirements while focusing on what matters most—growing their ventures. We offer comprehensive support for all five tax categories—from income and sales tax to payroll, use tax, and personal property filings. Whether you're just starting out or looking to optimize your existing processes, we're here to provide the guidance you need.
Ready to get your Colorado business taxes under control? Reach out now to learn how we can handle your tax compliance while you focus on building your business.