The license you need depends on one thing: whether your business sits inside Durango city limits. Inside, the city licenses you. Outside, La Plata County mostly does not.
What does the City of Durango charge for a business license?
Every applicant pays a one-time $30 application fee. After that, the annual fee depends on how many people work for you, full- or part-time, counted as a monthly average. Here is the city's schedule from its licensing fees page:
| Employees | Annual license fee |
|---|---|
| 5 or fewer | $50 |
| 6 to 10 | $78 |
| 11 to 20 | $105 |
| 21 or more | $122 |
A new business estimates its employee count for the next twelve months. The Planning and Fire departments can add their own fees for inspections and reviews. Nonprofits pay no license fee, only the application fee and any review charges.
Which license do you actually need?
The city licensing page sorts businesses into three types.
- Annual business license. For a storefront, an office or a home-based business inside the city. It also covers companies based elsewhere that send staff into Durango to sell, repair or deliver.
- Sales tax only license. For a business with no presence in the city that ships goods in by common carrier. It costs $25.
- Event license. For vendors at the farmers market, festivals and similar events. It costs $25 for 0 to 15 events a year and $50 for more.
One business must hold one license for each physical location. Licenses do not transfer, so a buyer of an existing business applies fresh.
How does a home-based business get licensed?
It needs a Home Occupation Special Use Permit from Community Development first. The city says this applies to any work done from a home inside city limits, "no matter how small or big," even work managed on a home computer. It also applies if you use your home address for state and federal taxes.
What happens after you apply?
Your application goes from the City Clerk's Office to four departments: Planning, Building, Code Enforcement and Fire. All four must approve it before a license is issued. For a restaurant, retail shop or office, call the Durango Fire Protection District at 970-382-6000 and Community Development at 970-375-4850 before you apply. Check what building upgrades your space needs before you sign a lease. If you have an open planning permit, apply two weeks before you plan to open. The application also asks how you will handle trash and recycling, either through the city or a private hauler.
How do you pay sales tax in Durango?
Not through the state. Durango runs its own tax program, and the city's filing page says the State of Colorado and La Plata County tax portals cannot be used to file or pay city taxes. File through the city's MUNIRevs portal, or mail or drop off a return at City Hall, 949 East 2nd Avenue. Businesses that already use the statewide SUTS portal can link their city account number there.
Rates matter here. Durango's own sales tax is 3.5%, and hotels, inns and vacation rentals pay a 5.25% lodgers' tax on top of it. Our answer on Durango's sales tax rate adds up the county and state shares.
What if you are outside city limits?
La Plata County does not currently license businesses except for liquor, marijuana, ambulance and secure transport, according to the county's licensing page. A land use permit may still apply. Food businesses need a state retail food license, and the county's public health department takes calls at 970-247-5702. The county adds that a business may also need a state sales tax license from the Colorado Department of Revenue.
For the state paperwork, the first steps and free help, read our starting a business in Durango guide. Planning to hire? See where local job seekers look in our jobs in Durango answer.