How to Start a Tree Service Business in Colorado: City Tree Licenses (Colorado Springs $110, Denver, Boulder)

Colorado does not issue a statewide tree service license, so there is no single card that lets you prune and remove trees across the state. What you will find is a state filing process with the Colorado Secretary of State, a tax account with the Department of Revenue if you collect or withhold tax, and a patchwork of city licenses. Colorado Springs charges $110 a year for its tree service business license, Denver tests and licenses tree workers through the City Forester, and Boulder requires a licensed tree contractor or certified arborist class with an ISA exam. This guide covers the order to do things in, what each step costs, and where the rules differ by city.

Disclaimer: This article is informational only. It is not legal or tax advice. City codes and state rules change, so confirm every fee and requirement with the agency named before you spend money or sign a contract. For complex situations, talk to a Colorado business attorney and a CPA.

Materials and Documents You Need Before You Start

• Your proposed business name, checked against the Secretary of State business search
• A registered agent: yourself, another individual, or an entity that will consent to the appointment
• A physical Colorado street address where the registered agent can receive documents during business hours (no P.O. boxes)
• A current Colorado driver's license or state ID if you will serve as your own registered agent
• The filing fee: $50 for an LLC or a corporation
• Optional: $25 to reserve your name for 120 days
• A list of every city where you plan to work, since licenses are issued city by city
• Insurance quotes for general liability and workers' compensation
• Your equipment list: chainsaws, climbing or rigging gear, a chipper, a work truck, and personal protective equipment

Step 1: Choose Your Entity Type

Most tree service owners form a limited liability company (LLC). An LLC can keep your personal assets separate from business debts, though it will not shield you from your own negligence on a job site. LLC income passes through to your personal return and is subject to Colorado's flat 4.40 percent income tax rate. A corporation is the other option. It files Articles of Incorporation for a Profit Corporation with the same $50 filing fee and the same $25 periodic report. Colorado has no franchise tax. Because the choice affects taxes, liability and how you bring in partners, review it with a CPA and an attorney before you file.

Step 2: Check and Reserve Your Business Name

An LLC name must include a term identifying it as an LLC, such as "Limited Liability Company," "LLC" or "Ltd. Liability Company," under section 7-90-601 C.R.S. The name must also be distinguishable from names already on record with the Secretary of State. Punctuation and capitalization do not make a name distinguishable, so ABC Inc and abc inc are treated as the same name. Search the business database before you commit to a name, then consider reserving it. A name reservation costs $25 and lasts 120 days. Details are on the Secretary of State entity names FAQ.

If you will operate under a name different from your legal entity name, such as a shortened brand, you need a trade name. A Statement of Trade Name costs $20 to file online and $5 to renew. Trade names are filed statewide with the Secretary of State, not with your county. Many new owners look for a county filing, but trade names are filed with the state. See the Secretary of State trade name FAQ.

Step 3: Appoint a Registered Agent

Every entity must name one registered agent, and that agent must consent to the appointment. If you are an individual serving as your own agent, you must be at least 18, hold a current valid Colorado driver's license or state ID card, and either live in Colorado or have a usual place of business there. Enter your name and ID number exactly as they appear on the credential. If you do not have Colorado identification, you can request an agent passcode from the Secretary of State. A passcode expires 45 days after it is issued, so request it close to your filing date.

An entity can serve as the registered agent only if it is in good standing with the Secretary of State and has a usual place of business in Colorado. The 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. Many owners use a commercial registered agent service, which carries an annual cost that varies by provider, so compare providers and confirm the address rules before you pay.

Step 4: File Your Articles of Organization Online

File your Articles of Organization for a Limited Liability Company through the Colorado Secretary of State online filing system. The filing fee is $50. Online filings are processed in real time, and the record updates immediately after payment unless you choose a delayed effective date. The Secretary of State has no expedited tier for online filings because they process instantly. Expedited service applies only to the few documents that must still be filed on paper. Those take about 7 to 10 business days, and paper documents are handled within 3 business days of receipt for an added fee, with requests arriving after 4 p.m. possibly not reviewed until the next business day.

Save your filing confirmation and the record summary. The record summary shows your periodic report month, which is based on your formation anniversary. You will need that month for your annual filing.

Step 5: Open Your Tax Accounts with the Department of Revenue

Colorado has no general statewide business license. You need a Department of Revenue account only if your business collects or withholds tax. For a tree service, that usually comes down to three questions.

• Do you sell taxable goods? Tree work is a service and is generally not subject to the state sales tax. If you sell tangible goods such as firewood, mulch or wood chips, check with the Department of Revenue about whether you need a sales tax license and how to handle those sales. The state sales tax rate is 2.9 percent, plus any special district taxes that apply where the sale occurs.
• Are you in a home-rule city? Home-rule cities, including Denver, Aurora, Colorado Springs, Boulder and Fort Collins, collect and license their own city sales tax. A state sales tax license does not cover them. If you sell goods in one of these cities, you must also apply directly to that city.
• Will you hire employees? Employees trigger withholding obligations. Register for withholding through the Department of Revenue and check with the Colorado Department of Labor and Employment about its FAMLI program requirements. Confirm the current premium rules with that agency before you run your first payroll.

Apply for sales tax licenses through the Colorado sales tax license page, and use the Department of Revenue home page to find other account types.

Step 6: Get Your City Tree Service Licenses

Colorado does not license tree service businesses or arborists at the state level, as far as we could find. Check with the Department of Regulatory Agencies (DORA) Office of Professions and Occupations to confirm this before you rely on it. Cities do the licensing, which means the license you need depends on where each job is located. Build your city list before you bid your first job.

Colorado Springs

• Tree service business license: $110 per year
• Late renewal: $55
• Duplicate license: $5
• Exam fee: $120
• Exam: 40 questions, with 80 percent required to pass. ISA Certified Arborists and Tree Workers take a 20-question exam instead.
• Insurance: $1M/$2M general liability, plus $1M workers' compensation and employers' liability naming the city

Ordinance 26-53, effective October 5, 2026, updated the insurance rules. Check the city forestry page for the current insurance language before you buy a policy, and ask your broker to confirm the certificate wording the city expects.

Denver

Denver's tree service licensing is governed by Denver Revised Municipal Code chapter 57. The City Forester administers the test, and licenses are issued to an individual licensee through Licensing and Consumer Protection. Your company must keep a licensee. A company without a licensee for 30 days loses its license. If your licensed arborist leaves, plan to replace that person quickly, and check with the City Forester for current fees and insurance requirements.

Boulder

Boulder requires a licensed tree contractor or a certified arborist, and both classes include an ISA exam. Check with the City of Boulder about which class fits your work, the current fees, and how to schedule the exam. Boulder is also a home-rule city, so your sales tax obligations there are handled separately from the state license.

Other Cities

Aurora, Lakewood, Englewood, Littleton and Wheat Ridge each have their own licensing offices. Check with each city's licensing office before you work there. The same applies to any other city or county you plan to serve, including unincorporated county land.

Step 7: Plan Your Insurance and Workers' Compensation

Insurance is the step most likely to cost you money or delay a license. Colorado Springs requires specific liability and workers' compensation limits, and many other cities ask for proof of coverage when you apply. Get quotes from a broker who works with tree and landscape contractors. Ask for a certificate of insurance that names the city, and keep a copy in each truck.

If your work includes roofing, fencing or other construction, Colorado does not license general contractors, roofers, HVAC contractors, handymen or home inspectors at the state level. Cities and counties do, through their building departments. Electricians and plumbers are licensed by DORA. Check with your local building department before you add any of those services. If you will work near overhead power lines, check with the local utility about its safety and clearance requirements.

Step 8: Address Wildfire Mitigation and Pesticide Rules

Wildfire mitigation and defensible space work is growing in Colorado, and it has its own rules. The 2025 Wildfire Resiliency Code (8 CCR 1507-39) took effect July 1, 2025. Check with your local fire district or county about how the code applies to the properties you plan to service.

Customers may ask about the state income tax deduction for wildfire mitigation. It allows 50 percent of eligible costs, up to $2,500, under C.R.S. 39-22-104(4)(n.5). That deduction covers tax years through 2025. As of this writing, check with the Department of Revenue whether it has been extended to later years before you quote anything about it. Treat it as a tax question for the customer's CPA, not as a benefit you promise.

If you apply pesticides, including herbicide used to treat stumps, the Pesticide Applicators' Act applies to your work. The Colorado Department of Agriculture administers that act. Check with the Colorado Department of Agriculture about certification and licensing before you apply any product for customers.

Step 9: Stay Compliant Every Year

Your LLC or corporation files a $25 periodic report every year in its periodic report month. You can file from two months before that month through two months after it with no penalty. A new entity files no periodic report in its first year, and the first report is due in the second year. An entity that does not file becomes Delinquent, so put the due month on your calendar when you receive your record summary.

City licenses renew on their own schedules. Colorado Springs charges $55 for late renewal, so renew on time. Keep your Department of Revenue filings current if you collect sales tax or withhold payroll tax, and set aside money for the 4.40 percent state income tax.

Fee Summary

Item	Cost	Agency
LLC Articles of Organization	$50	Colorado Secretary of State
Name reservation (120 days)	$25	Colorado Secretary of State
Statement of Trade Name	$20 to file, $5 to renew	Colorado Secretary of State
Periodic report	$25 per year, starting in year two	Colorado Secretary of State
Colorado Springs tree service license	$110 per year, $55 late renewal, $5 duplicate	City of Colorado Springs
Colorado Springs tree exam	$120	City of Colorado Springs
Denver and Boulder tree licensing	Check with the city	City of Denver, City of Boulder
State sales tax	2.9 percent plus special district taxes (services generally not taxed)	Colorado Department of Revenue
State income tax	4.40 percent flat rate	Colorado Department of Revenue

Common Mistakes to Avoid

• Assuming a state license covers the whole state. Each city licenses tree work on its own terms, and Denver's license is tied to an individual licensee.
• Filing a trade name with the county. Trade names are filed with the Secretary of State.
• Using a P.O. box for the registered agent. The agent address must be a physical Colorado street address.
• Forgetting home-rule city sales tax. The state sales tax license does not cover Denver, Colorado Springs, Boulder or the other home-rule cities.
• Buying insurance without the city's current wording. Colorado Springs updated its insurance rules under Ordinance 26-53.
• Losing your Denver licensee. A company without a licensee for 30 days loses its license.
• Missing the periodic report. A missed report can make your entity Delinquent.
• Quoting the wildfire deduction without checking. It covers tax years through 2025, so confirm current status with the Department of Revenue.
• Applying pesticides without checking Department of Agriculture rules. Stump herbicide and other pesticide work falls under the Pesticide Applicators' Act.

Expected Results

Once your filings and licenses are in place, you may be able to bid on jobs in the cities where you hold licenses. Timelines can vary. Online state filings are often quick, but city exam scheduling, insurance review and license issuance can take longer, so plan your opening date with some margin. Your results will depend on your local market, pricing, reputation, crew management and how carefully you keep your insurance and licenses current. No specific outcome, such as a number of customers or a level of revenue, is guaranteed.

Practical Tips

• Map your service area by city before you advertise. Licensing decides which jobs you can take.
• Hire or train a certified arborist early, especially if you plan to work in Denver or Boulder.
• Get insurance quotes in writing that state the coverage limits, and confirm they match each city's requirements.
• Calendar your periodic report month, city renewal dates and insurance renewal dates in one place.
• Ask for help from the Colorado Small Business Development Center (SBDC) Network at sbdc.colorado.gov and the SBA's Colorado district page at sba.gov.

When to Bring in a Professional

Talk to a Colorado business attorney before you choose your entity type, draft an operating agreement with a partner, or take on a contract that includes indemnity or insurance terms you do not understand. Talk to a CPA about entity taxes, payroll, and whether any wildfire-related deduction applies to your customers. Talk to a licensed insurance broker about your coverage limits. This article is informational only and is not legal or tax advice.