What Qualifies as Doing Business in Colorado?
"Doing business in Colorado" would typically mean any activity that generates a physical or economic presence in the state. Even if you do not have a storefront operation, if your business is functioning in Colorado, you may be considered "doing business" and must register with the Colorado Secretary of State.
The following are common activities that are doing business in Colorado:
1. Having a Physical Presence
- Forming an office, store, warehouse, or facility in Colorado
- Hiring employees or independent contractors within the state
- Buying or leasing property (such as office space or equipment)
2. Engaging in Commercial Activities
- Selling goods or services to Colorado consumers
- Delivering goods in your own vehicles
- Entering into contracts governed by Colorado law
3. Entering Regular Operations
- Advertising or soliciting directly to consumers within Colorado
- Having business meetings, negotiations, or trade shows within the state
- Carrying on business in or through a subsidiary, affiliate, or agent within Colorado
4. Other Business Activity Triggers of Regulation
- Collecting sales tax from Colorado customers
- Obtaining local business licenses or permits
- Sued or sued in Colorado courts
Exceptions
- Some activities are not generally regarded as doing business, such as:
- Selling through independent distributors
- Passive investments or bank accounts
- Attending conferences without regular business activity
If your business maintains a regular presence, employees, customers, or contracts in Colorado, then it quite clearly qualifies under the definition of doing business within Colorado and ought to register. Not registering can result in fines and forfeiture of legal rights.
