What Licensing or Registration Requirements Apply to Sales of Distributorships in Colorado?

Full question:

I am considering selling exclusive distributorships to market a service using our products throughout the US. What laws exist that require me to license or register the business under the concept of consumer protection? Does it matter if I am intending to sell the distributorships outside the state of Co.?

Answer:

Trade name registration laws are designed to protect consumers from misleading names. These laws vary by local area, so you would need to check requirements in the applicable areas where you plan to conduct business. Colorado does not have a general business license. However, the business tradename is required to be registered with the Secretary of State's office. A business name must "be distinguishable on the records of the Secretary of State" from other business names and trademarks previously registered. All filing must be done on line. There is a $1 fee.

The State of Colorado does NOT have a general business license. However, many cities and counties require a local general business license. You will want to check with your local jurisdiction for their particular requirements.

If your company delivers goods and/or services to many locations, you should check with the city/county clerk you are going into to determine which, if any, local licenses apply to you. This becomes essential for MOBILE BUSINESSES such as LOCKSMITHS, CONSULTANTS, MOBILE WINDSHIELD REPAIR, CONSTRUCTION COMPANIES, DOOR-TO-DOOR SALES, CATERING, etc.

Other specific licensing requirements will depend on the nature of the business. Please see the information at the following links:

http://www.colorado.gov/cs/Satellite/CO-Portal/CXP/1165693060265
http://www.coloradoattorneygeneral.gov/departments/consumer_protection/licensing/telemarketing
http://www.sos.state.co.us/biz/FileDocTrdnm.do;jsessionid=0000luftr-2H5ROWGM6gW-KkKsG:11nm0gcsc

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Businesses must ensure their advertising is truthful and not misleading to comply with consumer protection laws. This includes avoiding false claims about products or services and substantiating any claims made. The Federal Trade Commission (FTC) enforces these rules, requiring that advertisements be clear and not deceptive. Additionally, businesses should regularly review their marketing materials to ensure compliance with both federal and state laws regarding advertising accuracy.