Colorado · Flat income tax, home-rule sales tax
CPA, bookkeeping & fractional CFO services in Colorado
Colorado has a flat personal income tax, a low 2.9% state sales tax and dozens of home-rule cities like Denver and Boulder that administer their own sales and use taxes. CPA Torrance is a CPA-led firm based in Torrance, California that provides bookkeeping, tax planning, tax filing and fractional CFO support to Colorado businesses remotely.
- Serving all of Colorado remotely
- Colorado DR 0106, DR 0112 and local sales tax tracked for you
- Monthly reporting included
In short
Why is Colorado sales tax so complicated?
Colorado has a low 2.9% state sales tax, but many cities, including Denver, Boulder and Aurora, are home-rule cities that set and collect their own sales and use taxes with their own rules. A business may file state returns plus separate returns with several cities, which is why accurate location tracking in your books matters.
- State income tax
- Flat rate
- State sales tax
- 2.9% + local
- Key business tax
- Home-rule city sales and use tax
- How we serve
- Remotely, statewide
Services in Colorado
What we do for Colorado business owners
From Denver tech companies and Boulder outdoor brands to Colorado Springs aerospace suppliers and mountain-town hospitality businesses, Colorado owners need careful local tax tracking. We provide monthly bookkeeping, federal and Colorado tax planning, filings and CFO reporting from one coordinated team.
Bookkeeping Services
- Monthly reconciliations in QuickBooks Online
- Colorado state and home-rule city sales tax tracking
- Payroll and contractor payment review
- Monthly profit and loss and balance sheet
- Catch-up and clean-up bookkeeping
Tax Planning & Strategy
- Entity and S corporation review
- Colorado SALT parity election review
- Federal and state estimated payments
- Multi-state income review
- Year-end tax planning meeting
Tax Filing & Compliance
- Federal business returns (1120, 1120S, 1065)
- Colorado DR 0106 and DR 0112 returns
- Owner individual returns
- IRS and state notice help
- Due-date tracking for every filing
Fractional CFO Services
- Cash-flow forecasts
- Budget versus actual reviews
- Margin and pricing analysis
- Lender- and investor-ready reporting
- Growth and hiring plans
Colorado tax planning
Planning around Colorado taxes
Colorado planning combines the flat income tax, the SALT parity election for pass-throughs, home-rule sales tax and federal planning.
Book a 15-min callHome-rule sales tax
We track sales by city and help you register and file with home-rule cities where you have sales.
SALT parity election
Colorado lets pass-through entities elect to pay state tax at the entity level. We model the federal benefit.
Use tax on purchases
Equipment and supplies bought without sales tax may owe Colorado and city use tax. We review purchases.
Who we work with
Colorado industries we serve
We work with owner-led businesses across Colorado, with experience in the industries that drive the state economy.
Technology and software
Denver and Boulder startups with investor reporting.
Outdoor and consumer brands
Product companies with inventory and e-commerce.
Aerospace and defense
Suppliers around Colorado Springs and Denver.
Hospitality and tourism
Mountain-town lodges, restaurants and outfitters.
E-commerce sellers
Online brands with Colorado sales tax, inventory and multi-channel books.
Professional firms
Consultants, agencies and law firms billing by the hour, project or retainer.
Why Colorado businesses choose CPA Torrance
Areas we cover
Serving businesses across Colorado
Businesses in Denver, Colorado Springs, Aurora, Fort Collins, Boulder work in technology, aerospace, outdoor recreation, real estate and energy. CPA Torrance helps Colorado businesses, including those owned from out of state, stay compliant and organized through remote meetings.
- Denver
- Colorado Springs
- Aurora
- Fort Collins
- Boulder
- Lakewood
- Englewood
- Pueblo
- Greeley
- Vail
- Video meetings on your schedule
- Secure document portal for statements and returns
- Cloud accounting you can see any time
FAQ
Colorado business tax and accounting questions
Not covered here? A 15-minute call gets you a straight answer for your situation.
What financial services can CPA Torrance provide to Colorado businesses?
We provide monthly bookkeeping, federal and Colorado tax planning, business tax filing and fractional CFO services. Everything runs from one set of books, so your bookkeeper, CPA and CFO advisor work from the same numbers.
What is a home-rule city in Colorado?
It is a city that administers its own sales and use tax instead of letting the state collect it. Businesses selling into these cities often register and file directly with them.
Does Colorado have a pass-through entity tax?
Yes. Colorado offers a SALT parity election that lets partnerships and S corporations pay state tax at the entity level, which may let owners deduct it federally.
Do I owe use tax in Colorado?
If you buy taxable items without paying Colorado sales tax, you may owe state and local use tax. We review your purchases and help you report it.
Can CPA Torrance work with Colorado businesses remotely?
Yes. We serve businesses across Colorado, including Denver, Colorado Springs, Aurora, Fort Collins, Boulder, Lakewood, Englewood, Pueblo, Greeley and Vail, through video meetings, a secure document portal and cloud accounting you can see any time. Our office is in Torrance, California.
How do I get started?
Book a 15-minute call or request a free financial assessment. We review your books, tax position and systems and recommend the right mix of support for your Colorado business.
Get your Colorado books and taxes in order.
Book a call to review bookkeeping and tax planning for your Colorado business.