Help new business owners understand the basic steps for forming, registering, and preparing to operate a business in Loveland and Colorado.
Start by defining your business idea, choosing a business structure, registering your business, and confirming the licenses, permits, taxes, and zoning rules that apply to your location and business type.
A practical starting checklist includes:
Use MyBizColorado and the Colorado Secretary of State to check name availability, register your business, and establish your legal structure. You should choose a name that is unique in Colorado, aligns with your branding, and is available as a domain and social media handle.
You do not need a separate State EIN. You may need to register with Colorado agencies through MyBizColorado, and you will typically need a federal EIN from the IRS.
Loveland does not require a general business license for all businesses. However, your business may need a sales tax license, home-based license, building permit, zoning approval, health approval, or another license or permit depending on what you do and where you operate.
Your business structure determines your legal protections, tax treatment, and paperwork requirements. Common structures include:
Business owners should review legal and tax implications with a qualified advisor before choosing a structure. Helpful resources include the SBA, IRS, and U.S. Chamber of Commerce.
A federal EIN is commonly needed to hire employees, open a business bank account, and file taxes. You can apply for an EIN for free through the IRS.
Colorado does not issue one general business license that applies to every business. Requirements depend on your industry. Check the Colorado Department of Regulatory Agencies (DORA) to determine whether your business type requires a state license or professional registration.
If you are operating from home or opening in a specific commercial or industrial location, confirm that your proposed use is allowed under local zoning. Zoning determines whether a specific business activity can legally operate at a location.
Common questions about Loveland sales tax, tax licenses, filing requirements, renewals, and local tax-related obligations.
A sales tax license is required for any person or business engaged in selling taxable retail tangible personal property or taxable services in the City of Loveland. A separate sales tax license is required for each physical location where a retailer operates in the City.
Service-only businesses and wholesale businesses located in Loveland are generally not required to have a sales tax license if they do not sell tangible personal property or taxable services.
The City of Loveland sales tax rate is 3.0%. Combined with Larimer County sales tax of 0.80% and Colorado state sales tax of 2.9%, the total rate is 6.70%.
The City of Loveland lodging tax rate is 3.0%.
Important sales tax license details include:
After the City receives the application, it is reviewed for questions and omissions. Applications may be returned if more information is needed. Completed applications are processed, and the vendor receives a retail sales tax license by email. Allow up to 25 business days for processing. Applications are typically not processed during the week of the 20th.
A home-based business may need a Home Based License. For more information, businesses can contact the City at 970.962.2523.
Businesses located in the Centerra Fee District are subject to an additional 1.75% sales tax rate in addition to district fees. Businesses in the district should review the City’s PIF and RSF fee information.
Loveland voters approved eliminating food for home consumption from City sales tax collections. This exemption began January 1, 2024. The City adopted the Colorado Department of Revenue’s food for home consumption exemption as written. Businesses should review Colorado C.R.S. 39-26-707 and FYI Sales 4 for detailed guidance.
Vendors submit sales tax returns according to the reporting period assigned when the license is issued. Depending on sales volume, vendors may file monthly, quarterly, or annually.
Returns are due on or before the 20th day of the month following the reporting period. If the 20th falls on a weekend or holiday, the return is due the next business day. If no tax is due, a zero return must still be filed.
Special event sales may require a separate process. Businesses and vendors should review the City’s Special Events guidance for requirements.
How land use, zoning, occupancy classifications, and Certificates of Occupancy affect whether and how a business can operate in a specific location.
Zoning refers to local regulations that divide land into districts, such as residential, commercial, or industrial, and specify which uses are allowed in each zone. Zoning is the legal tool that supports the community’s long-term land use vision.
Use refers to the actual activity taking place on a property.
Examples of zoning districts include R-1 single-family residential, C-2 general commercial, and I-1 light industrial. Zoning regulations may also address building height, setbacks, density, parking requirements, and signage.
Examples of uses include residential, commercial, industrial, and civic uses.
Zoning determines how land can be used. Occupancy refers to how the building itself is used.
Examples of occupancy classifications include assembly, business, factory, and mercantile. Assembly may include restaurants, dance halls, and churches. Business may include offices and dental offices. Factory may include manufacturing, laundries, and upholstering. Mercantile may include department stores and retail space.
A Certificate of Occupancy, or CO, is issued by the Building Division and confirms that a tenant can legally occupy a specific space. It may be required when a building will be used for a different purpose than originally classified or when updates are needed for safety or accessibility standards.
Changes in occupancy or use can affect the life safety and health of building occupants, as well as the structural integrity of the space. A building permit, inspections, and a new Certificate of Occupancy may be required. Without a new CO, the change can be considered a violation of City Code and may affect the insurability of the space.
Zoning determines which uses are permitted in each zoning district. A property’s use must comply with its zoning designation. If a desired use is not allowed in the current zone, the property owner may need to apply for rezoning, a Special Use Permit, or a variance.
Yes. Businesses moving into an existing tenant space must obtain a Certificate of Occupancy before legally occupying the space. This confirms that the space meets building code requirements for the intended use.
A Certificate of Occupancy may be required when:
A Temporary Certificate of Occupancy, or TCO, allows a building or portion of a building to be legally occupied before all construction is fully completed, as long as the space is safe for use.
To qualify for a TCO, major life-safety systems such as fire alarms, sprinkler systems, and exit access must be installed and operational. The fee for a TCO is $1,000 per month.
Questions about common permit types, tenant finish work, alterations, and when design professionals may be required.
There are three common permitting options businesses may use:
A Tenant Finish Permit is needed when:
After work is completed, the space must pass inspection before a Certificate of Occupancy is issued.
Examples of alterations include:
A Change in Tenancy Permit is not required, but it may be used if a new tenant wants a Certificate of Occupancy issued in their name. This reflects a change in the legal tenant while the intended use of the space remains the same.
An Alteration Permit is required when an existing tenant or property owner makes modifications to an existing structure that affect the building layout, systems, or code compliance.
A change of use, tenant finish, or alteration permit may require plans or evaluations stamped by a Colorado-licensed architect or engineer. Businesses should consult their design professional to ensure the project meets building code requirements.
Timing, plan review, permit fees, project changes, inspections, and what happens when a permit timeline changes.
Once the application check-in is complete and the plan review fee has been paid, the first review typically takes about 20 business days. Additional reviews typically take about 10 business days. If a second review is required, it will be completed within 10 business days.
Permit fees are based on the valuation of the total project cost. Fee estimate information is available from the City’s fee schedules, fee estimator request forms, and online payment resources.
Yes. The Building Division may extend a permit up to two times. Each extension can last up to 90 days. The first extension is free, and the second extension has a $150 fee.
Permit valuation refers to the construction value of the project, including labor and materials. It does not include the value of the business, the value of the land, lease payments, or rent.
If changes occur after a permit has been issued, such as updates to the project plans or changes to contractors, the Building Division must be notified so the project can remain compliant with the review and permitting process.
Common changes include:
All documentation should be sent to [email protected].
If your project requires permits or a Certificate of Occupancy, the required inspections must be completed before the space can be legally occupied or used. Inspections confirm that the space meets applicable building, safety, and code requirements.
Specialized reviews, building systems, Fire Department requirements, and projects that may involve multiple departments or technical systems.
Yes. The Fire Department reviews building drawings during the permitting process. If a fire suppression system or fire alarm system is required, a separate permit may also be required.
Projects that affect life safety, fire protection, occupancy, or building systems may be reviewed by the Building Division, Fire Department, and other City departments depending on the project scope.
Permitting documentation related to building plan changes, contractor changes, or subcontractor changes should be sent to [email protected] unless City staff directs otherwise.
Building systems that may require additional review include mechanical and plumbing systems. Examples include:
The City will identify required reviews based on the application, project scope, property location, and business use. If you are unsure where to begin, contact City staff before starting work or signing a lease.
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