How to start a pet sitting business in Colorado (2026)

1Pet sitting demand in Colorado

About 65% of Colorado households own at least one pet. Denver International Airport is a major airline hub, so Front Range clients book sits for work trips and holiday flights all year. Ski season adds a second wave as Denver and Boulder households head to Summit County and Vail for long weekends. In Colorado Springs, Fort Carson, Peterson Space Force Base and the Air Force Academy bring deployments, training trips and moves that need multi-week sits. Cat owners in Denver apartments are a steady drop-in market that many dog-focused sitters overlook.

The biggest markets: Denver, Boulder, Colorado Springs, Fort Collins.

2Can you board pets at home in Colorado?

Visits and overnights in the client's own home are the low-paperwork option. Boarding at your house is regulated. Under PACFA, run by the Colorado Department of Agriculture, a Boarding/Training facility is anyone who, for pay, cares for or houses more than three pet animals at one time, not counting their own. The license is listed at $500 a year and needs a qualifying education course and a pre-license inspection before you start or advertise. Because the definition says cares for and not only houses, a sitter who regularly looks after more than three client pets at once should ask PACFA whether it applies. Cities add limits too: Denver allows five animals per household, no more than three of them dogs. Check zoning and your HOA before taking boarders.

3Set up your business in Colorado

• File an LLC. $50 one-time filing with the Colorado Secretary of State (Business). It separates your personal assets from the business, which matters when you hold clients' keys.
• Recurring entity cost: $25/year, annual periodic report filed with the Colorado Secretary of State.
• Get an EIN from the IRS. It is free and takes about 10 minutes online.
• City or county business license: typically $25-100/year. Check your city's revenue or business services site.

Colorado-specific: Colorado has the cheapest LLC filing of any state on this list at $50, and the periodic report is $25 a year (a $50 late penalty applies if you miss it). The whole legal-entity setup costs less than a single insurance premium.

4Taxes for Colorado pet sitters

Sales tax: Colorado does not charge state sales tax on most services, including dog walking, pet sitting, boarding and grooming. About 70 home-rule cities, including Denver, Boulder and Colorado Springs, run their own sales tax and licensing. Pet services are generally not taxed there either, but some cities, like Boulder, require a city business license even if you sell nothing taxable. Selling products such as treats or leashes is taxable. Check your city's rules and confirm with a local accountant.

State income tax: Flat-rate state income tax.

Other taxes worth knowing: Colorado has a flat state income tax (4.4% for 2025; the rate can drop temporarily in state surplus years). Denver also charges an Occupational Privilege Tax: $4 a month per owner, plus $9.75 a month per employee earning $500 or more in a month. Check current rates with a local accountant.

Official source: Colorado Department of Revenue: Sales Tax Guide →

5Insurance and bonding in Colorado

Look for general liability with care, custody and control (bailee) coverage so pets in your care are covered, plus key and lockout coverage, since you will hold keys and garage codes for clients who are out of state or up in the mountains. A bond is worth adding once you hire. Ask your carrier how it handles a frozen pipe or a heating failure in a client's empty home, and agree a written wildfire evacuation plan with clients near the foothills and open space.

• General liability with care, custody and control covers harm to the pets in your care and damage in the client's home.
• Key and lockout coverage pays to rekey a home if you lose a client's key.
• A bond covers theft claims and is a cheap way to reassure new clients.

Workers' comp once you hire: Workers' compensation is required for any employer with one or more employees, whether full-time, part-time, or family members. There's no minimum threshold like Florida's 4-employee rule. A solo owner with no employees doesn't need it, but Colorado presumes anyone you pay is an employee, so calling sitters contractors does not automatically exempt you. Colorado Dept. of Labor & Employment, Workers' Comp →

6What to charge in Colorado

Typical Colorado bands for 2026:

• Drop-in visit (30 min): $22 to $35
• Overnight in the client's home: $75 to $110 per night
• Additional pet: +$5-10 per visit

Overnights and peak dates: Plan on roughly $75 to $110 a night along the Front Range, with Denver and Boulder at the top. Peak dates are Thanksgiving, the Christmas to New Year stretch, spring break in March, and ski holiday weekends such as Martin Luther King Jr. Day and Presidents Day. Summer weekends fill too, as locals head to the mountains. Add a holiday surcharge and set a minimum stay for the busiest weeks.

Check your numbers with the pet sitter rates calculator and the holiday rate calculator.

7Hiring sitters in Colorado

Colorado presumes a paid worker is an employee unless you can show two things: the sitter is free from your control and direction, both in the contract and in practice, and they run their own independent business doing this work. A written contract with the specific clauses Colorado law requires shifts the burden of proof but does not guarantee contractor status. Get the agreement in writing and check your setup with a local accountant or employment attorney.

Colorado can fine employers who willfully misclassify workers: up to $5,000 per worker for a first unemployment-insurance violation and up to $25,000 for repeat ones, on top of back premiums. Since August 2025, separate wage-law fines run from $5,000 to $50,000 per violation. Document every contractor relationship in a written agreement and check your setup with a local accountant or employment attorney.

8FAQ