What licenses and permits are required to open a restaurant in Colorado?

Jan 24, 2024 | 3 min read

Opening a restaurant in Colorado requires several licenses and permits, including a retail food license, sales tax license, business license, city/county sales tax license, liquor license, federal tax ID number, and building permit. The specific requirements, fees, and processes may vary depending on the county and type of business.

1. Retail Food License

  • Purpose: This license is necessary for operating a restaurant, grocery store, convenience store, catering operation, food truck, or push-cart. It is aimed at preventing foodborne illnesses and promoting public health through education and partnerships to advance food safety.
  • Estimated Cost: The initial plan review fee is $100, and the cost of the review should not exceed $580. The license fee will be invoiced after your plans are approved.
  • How to Register: You can apply for this license through the Retail Food Program. The application should include your menu and food handling procedures, facility floor plan and equipment layout, equipment list by manufacturer and model number, manufacturer's specification sheets for all equipment, mechanical diagrams, and interior finish schedule.

2. Sales Tax License

  • Purpose: This license is required to operate a retail food establishment.
  • How to Register: You can apply for this license through the Colorado Department of Revenue at this link.

3. Business License

  • Purpose: This license is the annual tax for doing business in a certain area.
  • Estimated Cost: The cost of a business license is $25+ depending on the city/county.
  • How to Register: You can apply for the business license, pay any application and renewal fees, transfer licenses, and check the status of your license at any time through the online systems provided by most cities and counties in Colorado.

4. City/County Sales Tax License

  • Purpose: This license is required to operate a business in a specific city or county.
  • How to Register: Contact the local city/county taxation office.

5. Liquor License

  • Purpose: This license is required if you plan to serve alcohol at your restaurant.
  • How to Register: Apply through the Colorado Department of Revenue at this link.

6. Federal Tax ID Number (TIN, EIN, ITIN, etc.)

  • Purpose: This number is required for tax purposes.
  • How to Register: Apply through the Internal Revenue Service at this link or visit your local IRS office.

7. Building Permit

  • Purpose: This permit is required to ensure that your restaurant complies with local building codes and regulations.
  • How to Register: Contact your regional building department.

For more information, you can refer to the following sources:

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Otter helps your restaurant business grow. Here a few of our key results:
  • Increase revenue up to 10% with Marketing*
  • Reduce storefront downtime by up to 50% with Live Alerts*
  • Increase sales up to 50% with Digital Dine-In's QR code ordering*
  • Reduce missed orders to less than 1% with Order Manager's Auto-Accept feature*
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* Results based on typical Otter customer performance

DISCLAIMER: This information is provided for general informational purposes only and the content does not constitute an endorsement. Otter does not warrant the accuracy or completeness of any information, text, images/graphics, links, or other content contained within the content. We recommend that you consult with financial, legal, and business professionals for advice specific to your situation.

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