Starting a business in Durango means three kinds of paperwork. You file with the state, get a city license, and open a state sales tax account if you sell goods. An LLC costs $50 to form online. The city charges a one-time $30 application fee plus a yearly fee, per its licensing page. Below: what to do first, the rules that trip people up, and how to plan for slow seasons.
What do you file first?
Pick a structure, then register it. For an LLC, file Articles of Organization with the Colorado Secretary of State. The online fee is $50, and the yearly Periodic Report is $25, with a $50 penalty if it's late. If you want to lock in a name before you file, the state's fee schedule lists a $25 online name reservation. A lawyer or accountant can help you choose a form. Our attorneys guide lists local firms.
Do you need a city business license?
Almost certainly. Durango says anyone doing business inside city limits needs an annual license, including a home-based business. The same page lists other triggers: you send staff or deliveries into the city, you bought an existing business, or you moved locations. Licenses are not transferable between owners, and each physical location needs its own.
A few rules catch people out:
- Home-based business. The city requires a Home Occupation Special Use Permit for any home-based business inside city limits.
- Restaurants, retail and offices. Call the Durango Fire Protection District and Community Development before you apply, and check what building upgrades your space needs before you sign a lease.
- Signs. Don't install signage before you contact Community Development.
- Alcohol. You can't serve it without a liquor license.
- Events. Vendors at markets and festivals need an event license.
Four city departments review each application: Planning, Building, Code Enforcement and Fire. All four must approve it.
Do you need a sales tax license?
If you sell taxable goods, yes. The Colorado Department of Revenue explains how to apply for a sales tax license. The city has its own sales tax license too. If you only ship into Durango and have no presence here, you need the city's sales-tax-only license.
Where can you get free help?
The Southwest Colorado Small Business Development Center is hosted by Fort Lewis College and advises entrepreneurs in La Plata County and nearby counties. Region 9 says the center offers free business counseling. Start there for plans, loans and hiring questions. The Durango Chamber of Commerce is the local networking hub.
How should you plan for the seasons?
Tourism and outdoor recreation drive much of Durango's spending. Summer brings river and train traffic. Winter brings skiers to Purgatory. Spring mud season and late fall are slow. If you serve visitors, you may earn most of your income in a few months, so save during the busy season. A local accountant can help.
Who should be on your team?
Line up four helpers early.
- An accountant from the finance category for books and taxes
- An attorney from the law and government category for your lease and structure
- A marketing agency to help customers find you
- An insurance agent who knows mountain risks such as snow load and wildfire
In a small town like this one, word of mouth beats ad spend. Show up at the farmers market, sponsor a youth team and hire locally whenever you can. Full disclosure: this directory is run by Animas Marketing, a Durango agency at animasmarketing.com. Talk to two or three local shops before you hire anyone, us included. Browse the wider marketing and advertising category too.