Security Guard Company in Colorado: No State License, but Denver Licenses Employers and Guards

If you want to start a security guard company in Colorado, the first thing to know is that the state does not issue a security guard license. We did not find a statewide license for private security guards or the companies that employ them. That does not mean you can open for business and place guards on posts. You still form an entity with the Colorado Secretary of State, open a Department of Revenue account if you collect or withhold tax, and get the licenses your city or county requires. In Denver, that means a city license for the company and a separate license for each guard. This guide walks through the steps in order, with the fees and requirements, and tells you where to confirm figures that change.

This article is informational content, not legal or tax advice. Entity choice, insurance, employee classification, and armed operations all carry real consequences, so consult a qualified attorney and a CPA before you commit.

Materials and information you need before you start

• A company name that includes an LLC term such as Limited Liability Company, LLC or Ltd. Liability Company, and that is distinguishable from names already on Secretary of State records.
• A registered agent with a physical Colorado street address and the agent's consent. An individual agent must be at least 18 and hold a current Colorado driver's license or state ID card.
• Formation documents: Articles of Organization for an LLC, or Articles of Incorporation for a profit corporation.
• A debit or credit card for online filing fees.
• A certificate of insurance for the company, which Denver requires with the employer license application.
• For each guard: an FBI background check, five years of employment history, and a training-completion certificate.
• A written plan that states whether guards will be armed, since armed work adds a firearm endorsement requirement.

Step 1: Confirm the state picture before you file

Colorado House Bill 25-1262 would have created a State Board of Private Security Services with licensing beginning August 1, 2026. The bill was postponed indefinitely on April 7, 2025, and it died. Because state rules in this area can change, check with the Department of Regulatory Agencies (DORA) for any newer law before you file. Do not rely on older blog posts that describe a state license as pending or in effect.

Step 2: Form your entity with the Colorado Secretary of State

Every LLC or corporation forms through the Colorado Secretary of State, Business Organizations Division. Most business documents must be filed through the Secretary of State online filing system. Online filings are processed in real time, so the record updates right after payment unless your document sets a later effective date.

• Articles of Organization for an LLC: $50 filing fee
• Articles of Incorporation for a profit corporation: $50 filing fee
• Name reservation: $25 for 120 days, if you need time to finish your paperwork

Search the Secretary of State business search before you file. Punctuation and capitalization do not make a name distinguishable, so ABC Inc and abc inc are treated as the same name. Choosing between an LLC and a corporation is a decision for your attorney and CPA. Both cost $50 to form, and both owe the same $25 periodic report. Colorado has no franchise tax. An LLC's income passes through to the owners and is subject to the flat 4.40% Colorado income tax rate.

Your registered agent address must be a physical Colorado street address where documents can be received during normal business hours. A P.O. box does not qualify. Under rules effective July 1, 2025, the filer must enter the individual agent's name and ID number exactly as they appear on the credential. If the agent has no Colorado ID, the Secretary of State can issue an agent passcode, which expires 45 days after it is issued.

A new LLC or corporation files no periodic report in its first year. Starting in the second year, you file a $25 periodic report every year in the periodic report month shown on your record. You can file from two months before that month to two months after it without penalty. An entity that does not file becomes Delinquent.

Step 3: File a trade name if you will use a different name

If you will operate under a name other than your registered entity name, file a Statement of Trade Name with the Secretary of State. Trade names are filed statewide, not with the county. The fee is $20 to file online and $5 to renew. The Secretary of State trade name FAQ covers the details.

Step 4: Open tax accounts where they apply

Colorado has no general statewide business license. You do need a Department of Revenue account if you collect or withhold tax. For a guard company with W-2 employees, withholding is the main issue. Withholding rates and deposit schedules come from the Department of Revenue, so check with them directly rather than relying on a number in this article. Check with the FAMLI Division about any premium obligations for your employees.

The state sales tax is 2.9% plus special district taxes. Security services are a service, and services are generally not subject to the state sales tax. If you also sell tangible goods, such as radios, uniforms or flashlights, sales tax may apply to those sales. You can apply through the Colorado sales tax license page. That license covers state and state-collected jurisdictions only. Home-rule cities, including Denver, Aurora, Colorado Springs, Boulder and Fort Collins, license and collect their own city sales tax, so you must apply to those cities directly if you sell goods there.

Step 5: Apply for the Denver employer license

Denver licenses private security employers and guards through the Department of Licensing and Consumer Protection. Do not place anyone on a post until the company and each guard are licensed. The employer fees, as we verified them, are:

• 1 to 24 guards: $100 employer license application plus $100 license
• 25 or more guards: $200 employer license application plus $200 license

Denver also requires a certificate of insurance and a training-completion certificate. Confirm with the Department of Licensing and Consumer Protection whether each document must accompany the application or be kept on file for each guard, and check the agency for current fees before you budget, because fees can change.

Step 6: License each guard

Each guard needs a Denver guard license. New guards must complete a 16-hour course. Renewal requires an 8-hour refresher. Each applicant must pass an FBI background check and provide five years of employment history. Build this into your hiring process. A candidate with gaps in employment history or a background issue can delay your staffing plan, so collect the history and start the background check before the first shift is scheduled.

Step 7: Add the firearm endorsement if guards will be armed

A firearm endorsement is a separate requirement. It takes 5 hours of classroom instruction and 3 hours of live fire from a POST or NRA instructor. The guard must reach 80% range proficiency within the last six months. The endorsement is renewed annually. Schedule these trainings and keep the proficiency records in each guard's file, because an armed guard without a current endorsement creates both licensing and liability problems.

Step 8: Check licensing in other cities and counties

Denver's rules do not apply automatically in other places. For Aurora, Colorado Springs and Glendale, check with each city's licensing office before you take a post there. If you serve a location outside a city, check with that county. When searching for Aurora requirements, make sure your results are for Aurora, Colorado, not Aurora, Illinois or Aurora, Ohio. Those results can look similar but apply to different states.

Tips for a smoother process

• Confirm Denver's current employer and guard fees before you set your startup budget.
• Bind your insurance before you file the Denver application, since the certificate is a required document.
• Start each guard's five-year employment history and FBI background check during hiring, not after an offer.
• Calendar your periodic report window, the Denver renewal dates and the annual firearm endorsement renewal.
• Keep one binder or secure digital folder with the formation documents, tax account numbers, licenses and training certificates.

Common mistakes to avoid

• Assuming that no statewide license means no license at all. Denver licenses employers and guards, and other cities may too.
• Using a P.O. box as the registered agent address.
• Choosing a company name without an LLC term, or one that is not distinguishable from an existing record.
• Forgetting that the first year has no periodic report, then missing the first report due in the second year.
• Treating security services as taxable sales. Services are generally not subject to state sales tax, but goods you sell may be.
• Putting an armed guard on a post before the firearm endorsement is complete.
• Relying on an outdated article that treats HB25-1262 as a live state licensing program.

Expected results

Following these steps may put your company in a position to operate legally in Denver. Once your Secretary of State filing is accepted, the entity record typically updates immediately, which can let you open bank and tax accounts. Denver processing times can vary, so the company may need to wait for employer and guard approvals before staffing. Results depend on your application, your guards' records and any follow-up the city requests. Treat this section as a general expectation, not a guaranteed timeline.

Where to get help

The Colorado Small Business Development Center (SBDC) Network offers free and low-cost advising, and you can find your local center through the Colorado SBDC Network. The SBA Colorado district page lists local resources. For entity selection, insurance, employment classification and firearm policy, work with a qualified attorney and a CPA. Confirm every fee and deadline with the agency that administers it before you act, because this guide is informational content, not legal or tax advice.