If you are starting a home-based business, you will need to be aware of any restrictions on the operation of your business, and any licenses or permits that will be required—whether you are baking pies, washing cars, babysitting children, grooming dogs, or providing counseling services. Some of the common sources and types of these restrictions, licenses, and permits are: (1) local zoning laws—including for signs for your business; (2) restrictions from your HOA (homeowners’ association), property deed, or residential lease agreement; (3) tax permit (sales and use tax) or resale/reseller’s certificate; (4) occupational license; (5) city or county business license; and (6) health and safety permit.

In Colorado, starting a home-based business requires compliance with various regulations. Local zoning laws may restrict the type of business activities you can conduct in a residential area, including the use of signs. Homeowners' associations (HOAs), property deeds, or lease agreements may also impose additional restrictions. A tax permit, such as a sales and use tax license, is necessary if you are selling goods or services subject to sales tax. Depending on the nature of your business, you may need an occupational license, which is profession-specific. Additionally, a city or county business license may be required for legal operation. For businesses involved in food preparation, childcare, or health services, a health and safety permit may be necessary to ensure compliance with public health regulations. It's important to check with local government offices, such as the city clerk or county clerk, and the Colorado Department of Revenue for specific requirements related to your home-based business.