How to start a church in Colorado

Short answer: To start a church in Colorado, you incorporate by filing Articles of Incorporation for a Nonprofit Corporation online with the Colorado Secretary of State ($50 as of 2026), then get a free EIN from the IRS, adopt bylaws, seat a board, and open a bank account. A church is automatically tax-exempt under federal law, so IRS Form 1023 and the determination letter are optional, and the church files no annual Form 990. The pieces that are genuinely Colorado-specific are the online state filing and two state exemptions worth claiming: a sales tax exemption through the Colorado Department of Revenue using Form DR 0715 (no fee), and a property tax exemption through the Colorado Division of Property Taxation, which carries a filing fee and a yearly report. Most churches are also exempt from Colorado’s charitable-solicitation registration.

The federal formation steps — EIN, bylaws, board, books — are the same in every state. This guide covers those briefly and then spends its time on the Colorado pieces that carry the real value. For the full national walkthrough of each universal step, read how to start a church; below, the focus is what changes inside Colorado.

The formation steps that are the same anywhere

Starting a church in Colorado follows the standard church-formation checklist, and most of it is federal, not state-specific:

1. Incorporate as a nonprofit corporation (the Colorado-specific part — covered in detail below).
2. Get an EIN — a free federal tax ID from the IRS, applied for directly at irs.gov. Never pay a third party for one; the EIN is always free.
3. Adopt bylaws — the church’s internal rulebook for decisions, leadership, and money. Start from a proven document rather than a blank page; see church bylaws for what to include.
4. Seat a board — at least three directors, ideally a majority unrelated, so the church is governed by a body rather than one person.
5. Skip or pursue the 501(c)(3) letter — a church is automatically tax-exempt and does not have to file Form 1023, though many apply for the determination letter as documentation (IRS Publication 1828).
6. Open a bank account in the church’s legal name using the EIN and formation documents.
7. Set up the books on fund accounting from day one, before the first offering arrives.

Each of these is walked step by step in the national formation guide linked above. The rest of this page is the Colorado layer on top.

Incorporating a church in Colorado

Colorado creates the church as a legal entity when you file Articles of Incorporation for a Nonprofit Corporation with the Colorado Secretary of State (the document some people call the “certificate of formation”). Two things set this apart from many other states. First, the filing fee is $50 as of 2026; confirm the current amount with the Colorado Secretary of State, since fees change. Second, there is no mail-in option to weigh — Colorado requires this filing to be submitted online through the Secretary of State’s business portal, so plan on filing electronically rather than printing a form.

The Articles ask for the church’s name, its registered agent and registered office in Colorado, the name and address of the person forming it, and how the church’s assets will be handled if it dissolves. That last point matters more than it looks. To satisfy the IRS later, the document needs the two clauses a 501(c)(3) review checks against, and you should keep them in rather than leaving them out:

• A 501(c)(3) purpose clause stating the church is organized exclusively for religious and charitable purposes.
• A dissolution clause stating that if the church closes, its assets pass to another 501(c)(3) organization, not to any individual.

The IRS looks for both, so getting the language right on the Colorado filing saves a rewrite. The full breakdown of what these documents need is in articles of incorporation for a church. Colorado law sets a low floor on board size — a nonprofit corporation may form with as few as one director — but three mostly-unrelated directors is the practical standard and the setup that reads as real governance if the church ever does apply for the IRS letter.

Does a Colorado church register with the state to fundraise

Colorado requires most charities to register with the Secretary of State’s Charitable Solicitations program before they solicit contributions — but this is the step where a church usually gets a pass. Under the state’s rules, churches and church-affiliated organizations that are exempt from filing an IRS Form 990 are also exempt from Colorado charitable-solicitation registration. Because a church files no annual Form 990 in the first place, an ordinary congregation taking offerings and asking members to give does not register to fundraise (Colorado Secretary of State, charitable registration exemptions).

There is a narrow catch to know about. A religious organization that does file a Form 990 is not exempt and would have to register, and an exempt church that hires a paid professional solicitor may need to file an exemption claim just to gain system access for the required paperwork. Neither situation touches a typical church running its own offerings. Note that “registering” still happens in one sense — filing the Articles of Incorporation registers the church as a legal entity with the state. What Colorado spares the ordinary church is the separate fundraising license and its annual renewal. Confirm your status with the Secretary of State before assuming the exemption applies to an unusual case.

Claiming the Colorado sales tax exemption with Form DR 0715

A Colorado church can buy goods and services for its religious purpose free of state sales tax, but the exemption is not automatic — you apply to the Colorado Department of Revenue using Form DR 0715, the Application for Exempt Entity Certificate (older versions were titled the Application for Sales Tax Exemption for Colorado Organizations; it is the same DR 0715). The state’s criteria track section 501(c)(3): an organization organized and operated exclusively for religious or charitable purposes generally qualifies, and the Department notes that organizations holding IRS 501(c)(3) status are generally approved.

Here is the practical wrinkle for a new church. The DR 0715 application asks you to attach a copy of the IRS letter regarding your federal tax-exempt status. A church that has chosen not to file Form 1023 will not have a determination letter to attach, which can complicate the application — so this is one concrete reason some new Colorado churches decide to pursue the optional IRS letter anyway, purely as documentation. There is no fee to apply, and once granted, the Certificate of Exemption does not expire (Colorado Department of Revenue, DR 0715). One honest caveat most guides bury: the state certificate covers state sales tax and the local taxes the state collects, but it does not automatically reach Colorado’s home-rule cities — Denver, Colorado Springs, Boulder, and dozens of others that run their own sales tax. To buy tax-free in a home-rule city, you often apply to that city separately, so treat the DR 0715 certificate as the foundation, not the whole picture.

Claiming the Colorado property tax exemption through the Division of Property Taxation

A Colorado church that owns its building can exempt that property from local property tax, and this one is distinctive: it runs through the Division of Property Taxation inside the Colorado Department of Local Affairs — not the county, the Secretary of State, or the Department of Revenue. Property owned and used solely and exclusively for religious purposes, not for private gain, qualifies under state law, and you claim it by filing an initial application for property tax exemption with the Division (Colorado Division of Property Taxation, religious and charitable exemptions).

Two features make Colorado’s property exemption different from a one-and-done filing in some states. First, the initial application carries a fee — set at $205 as of 2026 (the fee is adjusted for inflation each year, so confirm the current figure with the Division before filing). Second, and this is the part churches forget, the exemption is not permanent on its own: an exempt owner must file an Exempt Property Annual Report with the Division every year to keep the exemption alive. That report is due by April 15, carries its own fee — $115 for an on-time filing, rising to $310 if filed late as of 2026 — and letting it lapse can put the exemption at risk. Put the April deadline on the church calendar the same year you first apply, because the annual report, not the initial application, is what keeps the building exempt long-term.

Colorado filing at a glance

The table below maps each Colorado step to its agency, form, and cost. Treat the fees as accurate as of 2026 and confirm with the listed agency, since Colorado fees adjust.

What you’re doing	Agency	Form	Fee (as of 2026)
Incorporate the church	Colorado Secretary of State	Articles of Incorporation (online only)	$50 (confirm with the SoS)
Get a federal tax ID	IRS	EIN application (online)	Free
501(c)(3) recognition (optional)	IRS	Form 1023 or 1023-EZ	$600 / $275 user fee
Sales tax exemption	Colorado Department of Revenue	Form DR 0715	No fee
Property tax exemption (initial)	Division of Property Taxation	Application for property tax exemption	~$205 initial
Property tax exemption (yearly)	Division of Property Taxation	Exempt Property Annual Report	~$115 on time / ~$310 late
Charitable-solicitation registration	—	Not required for ordinary churches	—

Setting up the books once the church exists in Colorado

Once the church is formed and the exemptions are filed, the work shifts from one-time paperwork to the monthly routine — and that routine is where churches actually fail or hold together. A church holds money in trust for the people who gave it, much of it tagged for a purpose (the building, missions, benevolence), so it tracks money by fund rather than as a single bottom line. Set the books up on fund accounting before the first offering, keep the giving records your donors need for their own taxes, and document that the board reviews the finances. The Colorado angle to keep on your calendar is the property tax annual report — that yearly filing to the Division of Property Taxation is what keeps the building’s exemption current, and letting it lapse can undo the exemption you paid to set up. None of the state exemptions excuse a church from clean records; the IRS still expects records that substantiate income and expenses (IRS Publication 1828).

FAQ

How much does it cost to start a church in Colorado? The required state cost is small. Filing the Articles of Incorporation online with the Colorado Secretary of State costs $50 as of 2026, the EIN from the IRS is free, and the DR 0715 sales tax exemption carries no fee. The one recurring state cost is the property tax exemption, which runs about $205 to apply and roughly $115 a year for the required annual report — and only if the church owns property. So the bare legal minimum to form a Colorado church is close to the $50 filing fee plus your time. Optional add-ons raise it: the IRS determination letter is $275 (Form 1023-EZ) or $600 (full Form 1023), and insurance runs a few hundred dollars a year.

Does a Colorado church have to register with the state to fundraise? Usually no. Colorado requires most charities to register with the Secretary of State’s Charitable Solicitations program before soliciting, but churches and church-affiliated groups that are exempt from filing IRS Form 990 are also exempt from that registration (Colorado Secretary of State, exemptions). Since a church files no Form 990, an ordinary congregation does not register to take offerings. The exceptions are narrow: a religious organization that does file a Form 990, or an exempt church that uses a paid professional solicitor, may have to file.

Do you need 501(c)(3) status to start a church in Colorado? No. A church is automatically tax-exempt under federal law and does not have to file Form 1023 or hold an IRS determination letter to be exempt (IRS Publication 1828). That said, Colorado’s DR 0715 sales tax application asks for a copy of the IRS letter, so a church that wants the sales tax exemption may find the optional determination letter useful as documentation. Many Colorado churches still apply for the letter for banks, grant-makers, and large donors, but it is optional — see are churches tax exempt for the fuller picture.

Can I just start my own church in Colorado? Practically, anyone can start a church in Colorado — there is no state license or denominational permission required, and the First Amendment protects the right to form a religious organization. What you do need, to operate as a real and exempt church, is the structure: a nonprofit corporation formed on Articles of Incorporation filed online, an EIN, adopted bylaws, a board of at least three mostly-unrelated directors, a bank account in the church’s name, and books set up on fund accounting. The freedom to start one is unlimited; running one properly is a checklist.

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This is general information, not tax or legal advice. Colorado forms, fees, and deadlines change, and home-rule cities set their own rules — confirm the current requirements with the listed agencies or a qualified professional before you file.

Vestrybooks sets up a new Colorado church’s books on fund accounting from day one — funds, reconciliation, and the board reports — so the financial side is right before the first offering. See how it works.