Colorado is probably one of the most beautiful states with mountain ranges and wildlife visible no matter where you go. The major cities in Colorado are the Colorado Springs area and the Denver area. These two locations are about an hour apart. Colorado’s population according to the census bureau is approximately 5.8 million people. I am not trying to convenience you to become a private investigator in Colorado, however, it doesn’t hurt to share a little about the state if you don’t already live here.
Many things have changed in regard to private investigator licensing in Colorado. As of August 31, 2021, an individual does not need to be licensed by the state to work as a private investigator. Let’s get into what you will need to do when starting a private investigation business in Colorado.
Licensing Requirements to Work as a Private Investigator in Colorado
Colorado has a unique recent history as it relates to the private investigator licensing program in the state. Years ago Colorado was one of the few states left that did not have a licensing program governing the private investigation industry.
Eventually, Colorado adopted a licensing program however as of August 31, 2021, the licensing program was discontinued.
It is recommended that you connect with a local private investigation associate to stay up to date with the latest information in Colorado. More information on that later.
Register Your Business in Colorado
Currently, to run a private investigation business in Colorado you will need to register your business with the Secretary of State. You will need to check city, and county licensing requirements depending upon where you establish your business location in Colorado.
Colorado Springs has a Home Occupation Permit that may be relevant to private investigators conducting business our of their home. Check to see if this will apply to you.
While registering your business you will need to choose a legal entity. The 4 choices to choose from are:
- Sole Proprietorship
- Corporation
- Limited Liability Company
- General Partnership
I would consult with a tax consultant to determine which legal entity would be a good fit for your private investigation business. Many new private investigation businesses begin their companies as either a sole proprietorship or a Limited Liability Company.
Each entity has its pros and cons. Generally speaking, a sole proprietorship is usually the easiest type of company to start.
Choose a Name for Your Private Investigation Business
If you haven’t already considered what your name will be I have written how to choose a good business name for your private investigation business here.
A business name is important has it helps identify what your business is and what it can offer a prospective client.
Insurance or Bond for You Private Investigation Business
Most investigation companies purchase Errors and Omission Insurance to protect themselves. I discuss bonds and insurance more in another article on how to start a private investigation business if you would like to read more on this topic.
Insurance is a good investment to have considering the type of work private investigators are involved in.
Join a Private Investigator Association
If you are looking for ongoing education and to build some relationships with other investigators in the Colorado area, it would benefit you to join the Professional Private Investigators Association of Colorado or the PPIAC.
This private investigation association puts on events and has frequent meetings you can attend.
Colorado Private Investigator Salary Information
The average private investigator’s salary in the United States is $60,970. The median private investigator salary in Colorado is $78,420 which is $37.70 an hour. Colorado has the highest private investigator mean salary in the United States reaching $85,160.
While the cost of living in Colorado is on the rise, it is not the highest in the United States and the market is paying investigators well.
Only 360 private investigators were reported to be working in Colorado as of 2021 so there is plenty of opportunity for new investigation businesses to emerge.
Create a Website for Your Investigation Business
In order to be found be people seeking your services, you will want to create a buisness website. If you don’t know where to start you can hire a company to create a website for you or you can choose to create one yourself.
You will need to choose a domain name for your website. I have written about choosing the right domain name for your investigation business here.
Additional Considerations When Working as a Private Investigation in Colorado
Since there are no restrictions on starting a private investigation business in Colorado or working as a private investigator, some of the safeguards that are typically involved with a private investigation business are also gone. Generally speaking, most private investigation licensing programs have investigation experience requirements, and age requirements. States won’t allow individuals with a criminal record to work as private investigators.
Individuals with criminal records could presumably start an investigation business in Colorado, these investigators may find it hard to subscribe to investigation databases with access to sensitive information.
If you do not have any private investigation experience I would strongly suggest working for an investigation company first so that you can get an idea of what the life of a private investigator is about. This will allow you to learn the fundamentals of investigating for clients.
I have written about how to get hired by a private investigation company without experience here if you would like more information on that topic.
Here are Some Additional States You May Consider Securing a Private Investigation License:
Other Helpful Links for You
How to Become a Private Investigator in the United States
Cost to Start a Private Investigation Business
Colorado Private Investigator Association
Colorado Secretary of State Website
Colorado Office of Private Investigator Licensure
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