Tax preparation, bookkeeping, and financial guidance for Denver small businesses. CPA-reviewed.
Denver small business accountants charge $100–$250 per hour for ongoing advisory services. Monthly bookkeeping packages range $200–$800/month depending on transaction volume and complexity. Tax preparation for small businesses (Schedule C, S-Corp, LLC returns) runs $350–$1,500 per filing season. Business formation services — registering an LLC or Corporation in Colorado — cost $300–$800 including registered agent service for the first year.
Many Denver accountants offer initial consultations free of charge. Shop around — rates vary significantly by firm size and specialization. Solo practitioners typically charge less ($100–$175/hr) than mid-size firms ($150–$250/hr). For most Denver small businesses, a monthly bookkeeping package ($300–$500/month) plus annual tax prep ($500–$1,000) is the most cost-effective combination.
Colorado imposes a flat 4.4% corporate income tax on C-Corporations. S-Corporations and LLCs pass through income to owners' personal returns (Colorado individual rates range 4.4% flat). Sales tax is complex in Colorado — the state rate is 2.9%, but Denver's combined rate is approximately 8.81% (state + county + city + RTD district). Businesses selling goods in Denver must collect and remit sales tax monthly or quarterly.
Denver employers must also withhold occupational privilege tax (OPT): $11.75 per employee per month ($5.75 employee + $6.00 employer). Quarterly estimated tax payments are required if your business expects to owe $500+ in Colorado state taxes. Colorado also has business personal property tax on tangible assets valued over $7,800 — a common surprise for new business owners who don't realize equipment, furniture, and computers are taxable.
Only CPAs (Certified Public Accountants) are licensed by the Colorado Board of Accountancy. CPA requirements: 150 semester hours of college education (30 more than a bachelor's), passing all four sections of the Uniform CPA Exam, and 1 year of full-time experience under a licensed CPA. CPAs can perform audits, reviews, and attestation services that unlicensed accountants cannot.
Bookkeepers, enrolled agents (EAs), and tax preparers do not require Colorado state licensing. EAs are federally licensed by the IRS and represent clients in tax matters. Many Denver small businesses are well-served by an EA or experienced bookkeeper for routine work, with a CPA brought in for annual tax planning and compliance. Always verify credentials: check CPA status at the Colorado Board of Accountancy website and EA status at IRS.gov.
Many Denver entrepreneurs start with QuickBooks or Xero, handling bookkeeping themselves. That works — until it doesn't. Signs you need professional help: you're spending 5+ hours per month on bookkeeping, you've received an IRS or Colorado Department of Revenue notice, you're considering an S-Corp election (can save $2,000–$8,000/year in self-employment tax), you have multiple revenue streams with different tax treatments, or you're applying for a business loan that requires reviewed financial statements.
Colorado's business ecosystem — with its mix of tech startups, cannabis-related businesses (special tax rules under IRC § 280E), construction (prevailing wage compliance), and hospitality (liquor license reporting) — has unique accounting needs that generic online services don't handle well. A local Denver accountant who understands these nuances can save far more than their fee through tax strategies and compliance avoidance.
$100–$250/hour. Monthly bookkeeping $200–$800/month. Tax prep $350–$1,500. Business formation $300–$800.
CPAs need Colorado Board of Accountancy license (150 hours + CPA exam + 1 year experience). Bookkeepers and EAs need no state license.
State income 4.4% flat. Denver sales tax ~8.81%. Business personal property tax over $7,800. OPT $11.75/employee/month.
Hire when: revenue >$100K, have employees, need tax planning, considering S-Corp, got IRS notice, or spending 5+ hrs/month on books.
Home office ($5/sq ft), mileage (67¢/mi), health insurance, Section 179 (up to $1.16M), Colorado enterprise zone credits.
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