LaunchPath

Flagship channel-state reference guide

Start Facebook Marketplace in Colorado: full reference guide

Use this page when you want the complete dense version: all sections, all appendices, and the full official source directory in one scrollable reference surface.

Last verified: April 29, 2026 Reference mode Dense appendix

Built from reviewed public pages for Colorado, IRS, FinCEN, Denver, Facebook Marketplace. Use it as a first-pass guide, then verify the official links that match your setup.

How to use this page

Dense appendix modeFull source directory attachedLast verified April 29, 2026

This version favors completeness over pacing. Use it when you need the appendix, the dense source trail, or the full long-form reference in one place.

Best reading order

  1. Use the fast-answer and official-links sections first if you only need the main route and source trail.
  2. Open the entity, setup, tax, and local sections only where your exact launch path actually branches.
  3. Use the full source directory last as the appendix, not the starting point, unless you already know the exact agency task.
Fast answer appendix Official links first Full source directory
Back to the guided journey

Reference mode

Everything in one dense page

The guided journey is the easier starting point. This page keeps the full accordion guide and source appendix when you want the complete research-backed reference view.

Best when you need

  • The full section map in one scroll without the lighter journey framing.
  • The appendix and official-source directory preserved next to the answer sections.
  • A clearer audit trail before you print, compare, or cross-check another route.

Still better handled in the journey

  • First-pass reading when you want the shortest, safest beginner route.
  • Deciding what to do first before you need the full appendix.
  • Switching states or platforms quickly without reading the full dense version.
Reference map
Start here Fast answer If you want to open Facebook Marketplace in Colorado, you usually need to do six things in order: Everyone 6 steps

If you want to open Facebook Marketplace in Colorado, you usually need to do six things in order:

  1. Decide whether your first sales will be local meetup or off-platform payment or shipped checkout on Facebook if your account is eligible.
  2. Choose your setup: sole proprietorship vs single-member LLC.
  3. Run the Colorado marketplace-only vs direct-sales vs resale vs home-rule analysis that matches your actual selling lane before you assume you do or do not need a state sales-tax license.
  4. Check local city and county rules, especially the Denver home-business, sales-tax, and no-home-pickup zoning branch if you will operate there.
  5. Set up your listing, verification, payout, shipping, and policy flow on Facebook Marketplace.
  6. Launch only after your product, tax, local, and platform setup are all ready.

Practical first-launch recommendation

If you are casually testing low-risk items and understand the personal-liability tradeoff, sole proprietor can work.

If you intend to run repeat sales, hold inventory, or treat Facebook Marketplace as a real business channel, single-member LLC is usually the better long-term path in Colorado.

If your account is eligible for shipped checkout on Facebook, that is the strongest public-source fit for a beginner Colorado marketplace-only path. If you plan local meetup, local pickup, cash, Venmo, Zelle, or other off-platform payment, treat that branch more cautiously and finish the Colorado license analysis before launch.

Avoid these first-launch mistakes

  • Assuming a Colorado seller can ignore state sales-tax licensing just because a marketplace platform sometimes collects tax in a different branch.
  • Treating local cash, off-platform payment, and shipped checkout on Facebook as the same legal and operational lane.
  • Treating Denver home-business, zoning, and no-home-pickup limits as optional when operating from a residential Denver address.

Colorado-specific friction

Colorado forces you to separate the marketplace-only, direct-sale, resale, and home-rule city branches before you assume you do or do not need a state sales-tax license.

  • Colorado forces you to separate the marketplace-only, direct-sale, resale, and home-rule city branches before you assume you do or do not need a state sales-tax license.
  • Denver adds real local work around home-occupation rules, zoning, city sales tax, and no-home-pickup expectations for many residential sellers.
  • A clean Colorado launch can still become noncompliant quickly if you add direct local sales or inventory storage without re-running the state and local analysis.

Facebook Marketplace-specific friction

Facebook Marketplace is still not one stable small-business seller program in the public record; it mixes local consumer listings with feature-gated shipping and checkout tools.

  • Facebook Marketplace is still not one stable small-business seller program in the public record; it mixes local consumer listings with feature-gated shipping and checkout tools.
  • Public Meta help still warns that Marketplace is intended for consumers and that business listings can be blocked or removed.
  • Shipping, checkout, verification, payout, chargeback, and seller-protection rules should be treated as live account and action-date questions, not permanent certainties.
  • The public protection rules are much clearer for onsite checkout than for local cash or off-platform payment deals.

Insurance reality

Physical-product sellers should still think about general liability and product-liability coverage early, especially if inventory, shipping, or meetup risk is meaningful.

  • Physical-product sellers should still think about general liability and product-liability coverage early, especially if inventory, shipping, or meetup risk is meaningful.
  • No public universal Facebook Marketplace liability-insurance threshold or seller-wide insurance mandate was identified in the reviewed official public sources on April 29, 2026.
  • Carrier, landlord, warehouse, event, or commercial-lease requirements can still create separate insurance obligations even if Facebook Marketplace itself does not publish one universal threshold.
Back to top Next: Quick-start checklist
Checklist Quick-start checklist Use the research-backed checklist groups before you spend, before your first sale, and before launch goes live. Everyone 3 groups

Do these before you spend money

  • Decide whether you are selling locally or through shipped checkout on Facebook if available.
  • Pick your entity.
  • Pick your business name.
  • Stay in low-risk physical products for the first launch.
  • Avoid services, food, supplements, cosmetics, medical claims, batteries-heavy hazmat, alcohol, and children's products.
  • Make sure you can document sourcing with receipts or invoices.

Do these before your first sale

  • Form the business or file the Colorado trade-name branch if needed.
  • Get an EIN from the IRS if applicable.
  • Open a dedicated business bank account.
  • Run the Colorado sales-tax and resale analysis that matches your actual Facebook Marketplace lane.
  • Check local permits and home-based business rules, especially the Denver branch if you will operate there.
  • Confirm Marketplace access from your main profile; if you want shipping, confirm that shipping and checkout is actually available to your account and location.

Do these before launch goes live

  • Confirm the product is allowed by law and by Meta policy.
  • Decide how you will get paid and hand off the product in a way that matches your selling lane.
  • If you are shipping, complete the identity and tax-information prompts that Meta requires, choose the shipping-label method, and review return and payout pages.
  • Start with one or a few low-risk listings so you can test the flow without creating avoidable tax or policy mistakes.
Back to top Next: Official links you will use first
Choose your setup Entity choice Compare the sole-proprietor and single-member LLC paths before banking, tax setup, and platform onboarding. Everyone 2 options

Sole proprietor

Best for: Best if you want the cheapest and simplest start.

What it means

  • Colorado's reviewed public sources did not identify a separate state entity-formation filing for an individual operating under the individual's own legal first and last name.
  • If you use a business name that is not your legal first and last name, Colorado requires a Trade Name Statement filing with the Secretary of State.
  • Business income generally runs through your personal tax return unless the facts later change.
  • You usually do not get a liability shield.

Why someone chooses it

  • Faster launch
  • Lower up-front cost
  • Fewer entity-maintenance steps

Main downside: Personal liability

single-member LLC

Best for: Best if you want a more durable setup for repeat sales.

What it means

  • Colorado LLC formation uses Articles of Organization.
  • The reviewed public filing instructions show a $50 formation fee, a Colorado registered agent, and registered-agent consent requirements.
  • Colorado LLCs are reporting entities and file an annual Periodic Report.
  • Default single-member LLC treatment usually stays pass-through unless you later elect otherwise.

Why someone chooses it

  • Liability protection
  • Cleaner setup for banking, suppliers, bookkeeping, and scaling
  • Better fit for inventory, insurance, and later hiring

Main downside: Higher setup friction and recurring maintenance than a sole proprietorship

Back to top Next: What to do in order
Main path What to do in order The full end-to-end setup path, kept in the same order as the researched guide. Everyone 14 steps

  1. Step 1: Choose a low-risk Facebook Marketplace launch lane

    Main guide step 1

    You have two different practical lanes:

    • Option 1: Local meetup or local pickup: What the public record says:
    • Option 1: Local meetup or local pickup: Public Meta pages say Marketplace supports local buying and selling.
    • Option 1: Local meetup or local pickup: Public Meta safety guidance recommends cautious in-person practices and online payment methods, not blind trust.
    • Option 1: Local meetup or local pickup: Public Meta responsibility pages say a local Marketplace sale through an individual seller is between the buyer and seller.
    • Option 1: Local meetup or local pickup: What that means:
    • Option 1: Local meetup or local pickup: This is the easiest lane to access.
    • Option 1: Local meetup or local pickup: This is not the cleanest tax or buyer-protection lane.
    • Option 1: Local meetup or local pickup: Do not assume a local Facebook Marketplace sale gets the same Colorado marketplace-facilitator treatment as shipped checkout on Facebook.
    • Option 2: Shipped checkout on Facebook: What the public record says:
    • Option 2: Shipped checkout on Facebook: Meta says shipping and prepaid-label features are not available to all users.
    • Option 2: Shipped checkout on Facebook: Public Meta Help Center pages say that when an eligible individual seller uses shipping and checkout on Marketplace, the buyer pays securely on Facebook and the seller ships directly to the buyer.
    • Option 2: Shipped checkout on Facebook: Public Meta pages say shipped-checkout selling can require identity and tax-information verification.
    • Option 2: Shipped checkout on Facebook: What that means:
    • Option 2: Shipped checkout on Facebook: This is the cleanest Facebook Marketplace platform lane if your account qualifies.
    • Option 2: Shipped checkout on Facebook: It is feature-gated and not universal.
    • Option 2: Shipped checkout on Facebook: The strongest public Meta checkout, fee, protection, and performance rules attach to this lane, not to local cash or off-platform deals.

  2. Step 2: Choose a low-risk product lane

    Main guide step 2

    For a first launch, stay inside the safest lane:

    Why it matters: Practical rule: If the offer touches health, safety, regulated claims, dangerous goods, or restricted IP, slow down and do category-specific compliance research before listing it. Important Facebook Marketplace rule:

    • physical products
    • low-breakage, low-return items
    • products with clean receipts or invoices
    • no high-risk categories from services, food, supplements, cosmetics, medical claims, batteries-heavy hazmat, alcohol, children's products
    • Meta's public Marketplace policy pages say Marketplace listings must comply with Commerce Policies and Community Standards, and Marketplace is for physical products, not services.

  3. Step 3: Choose your name and brand approach

    Main guide step 3

    You need to decide whether you are:

    Why it matters: Important:

    • operating under your own legal name,
    • using a Colorado trade name,
    • reselling existing brands,
    • or building toward your own brand later.
    • Your Marketplace listing identity and your legal business name are not the same thing.
    • Public Meta access rules are centered on the seller's main profile, not on a universal business-seller storefront flow.
    • Keep receipts, invoices, and any reseller authorization records from day one.

  4. Step 4: Form the business

    Main guide step 4

    If you choose sole proprietor: No Colorado entity-formation filing was identified in the reviewed public sources if you operate under your own legal first and last name.

    • If you choose sole proprietor: No Colorado entity-formation filing was identified in the reviewed public sources if you operate under your own legal first and last name.
    • If you choose sole proprietor: If you use a trade name instead of your legal name, file the Colorado trade-name branch before relying on the name publicly.
    • If you choose single-member LLC: Do this in order:
    • If you choose single-member LLC: Run a preliminary Colorado name check.
    • If you choose single-member LLC: File Articles of Organization and pay the $50 filing fee.
    • If you choose single-member LLC: Keep internal operating records right away.
    • If you choose single-member LLC: If you will trade under a different public name, file the Colorado trade-name branch before using it.
    • If you choose single-member LLC: Calendar the annual Periodic Report cycle immediately after formation.

  5. Step 5: Get your EIN

    Main guide step 5

    Use the IRS EIN application if applicable. For most LLCs this is part of the normal setup. For many sole proprietors it is optional but still useful for banking, suppliers, bookkeeping, and privacy.

  6. Step 6: Open banking and bookkeeping

    Main guide step 6

    Do this right away:

    • Open a business checking account.
    • Use one account and one card for business only.
    • Save every receipt, invoice, shipping bill, payout statement, tax record, and local-cash-sale record.
    • Build a tax folder and a compliance folder from day one.

  7. Step 7: Resolve the Colorado state-tax, resale, and retail-delivery-fee branch before launch

    Main guide step 7

    This is the most important state-law split in the pack.

    Why it matters: What Colorado clearly says: What this means for Facebook Marketplace: Practical conservative rule: If you are not staying entirely inside shipped checkout on Facebook, do not assume you can skip the Colorado license analysis. Colorado resale branch:

    • Colorado says a seller that sells exclusively through a marketplace facilitator generally does not need a Colorado state sales-tax license from the Department of Revenue.
    • Colorado also says that if the seller additionally sells directly to consumers through the seller's own website or another direct channel, the seller is required to have a Colorado state sales-tax license.
    • Colorado says a marketplace facilitator must collect and remit state and state-administered local sales taxes on marketplace sales.
    • Colorado says the marketplace facilitator, not the marketplace seller, is liable for the retail delivery fee when the facilitator is liable for sales tax on the marketplace sale.
    • If every retail sale will be completed through shipped checkout on Facebook, and you stay inside that facilitated lane, this is the strongest public-source fit for Colorado's marketplace-only rule.
    • If you plan local meetup, local pickup, cash, Venmo, Zelle, wire transfer, or other off-platform payment, the public Meta record checked on April 29, 2026 does not clearly prove that Meta, not you, is the Colorado retailer for that branch.
    • If you also sell through your own site, invoice directly, or otherwise make direct sales, Colorado's public guidance points you into the sales-tax-license branch.
    • Colorado's standard retail license covers both retail and wholesale sales for a business that does both.
    • The reviewed public beginner pages did not preserve one single plain-language ordinary-retailer resale-document workflow for every supplier transaction.
    • Practical safe rule: settle the license question first, then re-check the current Colorado Sales Tax Guide, Marketplace Facilitators guidance, and supplier instructions before giving vendors resale paperwork.

  8. Step 8: Check local permits, zoning, and home-business limits

    Main guide step 8

    Colorado does not use one single local-business form for every city or county.

    Why it matters: Do this before operating: For Denver specifically:

    • check MyBizColorado,
    • check city and county business offices where you will operate,
    • check local zoning or planning offices if the business will use a home address,
    • check whether the city is self-collected for sales tax,
    • and ask about inventory storage, commercial deliveries, signage, or other activity triggers.
    • if you intend to do business from home and use your home address as a business address, Denver says you need a zoning permit for a home occupation,
    • Denver says Online Retail Sales as a home occupation cannot include transferring goods directly to a buyer at the residential premises,
    • if the business is located in Denver and makes retail sales, Denver says it needs a Denver sales-tax license even when operating from a residence,
    • and Denver can still impose a local use-tax branch even when the sales-tax-license answer is not the whole local picture.

  9. Step 9: If you hire employees, handle payroll registrations and insurance

    Main guide step 9

    If you do not hire anyone yet, skip this for now.

    Why it matters: If you hire:

    • register for Colorado unemployment through MyBizColorado when you become liable,
    • keep the Colorado workers' compensation requirement visible as soon as employees are involved,
    • as of April 29, 2026, Colorado's reviewed FAMLI employer FAQ says premiums are based on 0.88% of wages, and employers with fewer than 10 employees nationwide are not required to pay the employer share,
    • and Colorado's paid-sick-leave law remains a live policy branch if you hire.

  10. Step 10: Create your Facebook Marketplace seller setup

    Main guide step 10

    Have these ready:

    Why it matters: Public setup flow: Important Facebook Marketplace friction:

    • an adult main profile with Marketplace access
    • phone number
    • email address
    • government-issued ID
    • address information
    • tax information if Meta asks for it for shipped checkout
    • payout information for whatever shipped-checkout payment flow Meta presents to the seller
    • Public Meta access rules say Marketplace is intended for consumers and say businesses that list on Marketplace may be blocked or have listings removed.
    • Public Meta shipping pages are specifically written for individual sellers.
    • Do not assume a broad public business-seller or Shop onboarding flow applies to the default beginner path.
    • Confirm that Marketplace access works from your main profile.
    • Create an Item for sale listing with photos, price, and product details.
    • Decide whether the listing will stay local or whether you can enable shipping and checkout.
    • If you are eligible for shipping, complete the identity and tax-information prompts and review payout setup.
    • Publish a simple first listing and keep the first launch small.

  11. Step 11: Choose the right platform cost model

    Main guide step 11

    Facebook Marketplace does not use a normal public monthly seller subscription plan for ordinary listings.

    Why it matters: What the public record says as of April 29, 2026: What that means practically:

    • no public monthly Marketplace seller plan was identified for ordinary listings,
    • the public Seller Protection, Performance, and Accountability Policies page says Individual Sellers using onsite checkout are charged a fee of 5% per transaction, with a minimum fee of $0.40,
    • the same public merchant-policy page says the fee is calculated on the full transaction amount, including item price, shipping fees, and applicable taxes,
    • and no public universal listing fee was identified for local-only Marketplace transactions.
    • Your real pricing question is not basic vs pro plan.
    • Your real pricing question is local cash or person-to-person selling versus onsite checkout selling fee plus any shipping-label cost or return friction.

  12. Step 12: Complete the fulfillment branch that matches your lane

    Main guide step 12

    You have two practical first-launch paths:

    • Option 1: Local meetup or local pickup: Best if your account does not have shipping access or you are testing locally.
    • Option 1: Local meetup or local pickup: What you need:
    • Option 1: Local meetup or local pickup: a safe meetup routine
    • Option 1: Local meetup or local pickup: clear message records
    • Option 1: Local meetup or local pickup: a payment method you understand
    • Option 1: Local meetup or local pickup: tax and recordkeeping that match your actual Colorado branch
    • Option 1: Local meetup or local pickup: Important caution:
    • Option 1: Local meetup or local pickup: Public Meta responsibility pages say a local sale through an individual seller is between the buyer and seller.
    • Option 1: Local meetup or local pickup: Public Meta pages do not offer returns and refunds from Facebook for local pickup purchases.
    • Option 1: Local meetup or local pickup: Do not assume Purchase Protection or seller protection covers local or off-platform deals.
    • Option 2: Shipped checkout on Facebook: Best if your account is eligible and you want the cleanest public Meta operating lane.
    • Option 2: Shipped checkout on Facebook: What the public record says:
    • Option 2: Shipped checkout on Facebook: Buyers pay securely on Facebook and you ship directly to the buyer.
    • Option 2: Shipped checkout on Facebook: Public Meta pages support both Meta-generated shipping-label flows and an own label flow.
    • Option 2: Shipped checkout on Facebook: Public seller-protection policy says an Individual Seller must use a Meta-generated shipping label and ship within the published shipping or handling window to qualify for Shipping Protection.
    • Option 2: Shipped checkout on Facebook: Public merchant-policy pages say that if an individual seller does not fulfill an order within 3 business days from purchase, the order may be automatically canceled by Meta.
    • Option 2: Shipped checkout on Facebook: Public shipping-performance guidance says Cancellation Rate should stay below 10%.
    • Option 2: Shipped checkout on Facebook: Practical beginner recommendation:
    • Option 2: Shipped checkout on Facebook: If shipping is available to your account, this is the better first Facebook Marketplace business lane than trying to mix local cash deals, off-platform payments, and unclear tax treatment on day one.

  13. Step 13: Confirm product and policy eligibility before scaling

    Main guide step 13

    Before you scale, confirm four different things:

    Why it matters: Important public Meta policy rules:

    • Marketplace listings must comply with Meta's Commerce Policies and Community Standards.
    • Marketplace is for physical products, not services.
    • Public examples say animals, medical and healthcare products, and recalled products are not allowed.
    • the item is lawful in Colorado
    • the item is lawful in Denver if local rules matter
    • the item is allowed by Meta's Commerce Policies and Community Standards
    • the item really fits the ordinary physical product Marketplace lane

  14. Step 14: Launch with a compliance-first operating routine

    Main guide step 14

    Once live, keep these habits:

    • save all payout and transaction records
    • save local meetup logs if you are doing in-person sales
    • respond to buyer issues promptly
    • keep invoices and sourcing records
    • keep tax reserves separate if you are registered
    • monitor shipping performance if you use shipped checkout
    • re-check any listing that starts getting policy friction

Best practical order for the LLC launch path

  1. Choose the selling lane first: local meetup versus shipped checkout on Facebook if eligible.
  2. Choose the product lane.
  3. Choose the entity name.
  4. File Articles of Organization.
  5. Get the EIN.
  6. Open the bank account.
  7. Resolve the Colorado sales-tax-license and resale branch that matches your actual Marketplace lane.
  8. File the Colorado trade-name branch if the public business name differs from the legal entity name.
  9. Check Denver or other local zoning, local sales-tax, and local use-tax branches.
  10. Confirm Marketplace access from the main profile.
  11. If shipping is available, complete Meta's identity and tax-information prompts.
  12. Launch only after the listing, payment, shipping, and local-compliance branches are all settled.
Back to top Next: Colorado tax stack
State filing and tax Colorado tax stack Keep the Colorado registration, tax, and maintenance rules together while you launch. Everyone 7 checks

1. EIN

A typical single-member LLC needs an EIN.

  • A typical single-member LLC needs an EIN.
  • A sole proprietor commonly needs one once employees are hired and may still want one for operations even when not strictly required.

2. Colorado sales tax, seller permit, or equivalent registration

Colorado uses MyBizColorado or CR 0100 for the ordinary sales-tax license path.

  • Colorado uses MyBizColorado or CR 0100 for the ordinary sales-tax license path.
  • As of April 29, 2026, a one-location standard retail license starting during January 2026 through June 2026 costs $16.
  • The first retail location also requires a $50 deposit.
  • Colorado says these licenses are valid for a two-year period and expire at the end of each odd-numbered year.
  • Colorado says the license covers state and state-collected local jurisdictions, not separate self-collected home-rule city licensing.

3. Marketplace or platform tax rule

Colorado says a marketplace facilitator must collect and remit all applicable state and state-administered local sales taxes on marketplace sales.

  • Colorado says a marketplace facilitator must collect and remit all applicable state and state-administered local sales taxes on marketplace sales.
  • Colorado says a marketplace facilitator has the rights, obligations, and liabilities of a retailer for those marketplace sales.
  • Colorado says a seller that sells exclusively through a marketplace facilitator generally does not need a Colorado state sales-tax license from the Department of Revenue.
  • For Facebook Marketplace, the strongest public-source fit for that marketplace-only answer is the shipped checkout on Facebook branch if the seller really stays inside it.
  • If the seller instead uses local meetup, local pickup, cash, or off-platform payment, this pack keeps that branch separate because the public Meta record checked on April 29, 2026 does not clearly prove that Meta is the Colorado retailer for that fact pattern.
  • Colorado also says that if the seller additionally sells directly to consumers through the seller's own website or another direct channel, the seller is required to have a state sales-tax license.
  • Colorado says if a retail sale is made through a marketplace and the facilitator is required to collect sales tax, the facilitator is also liable for the retail delivery fee if the item is delivered by motor vehicle, and the marketplace seller who is not liable for sales tax is also not liable for the retail delivery fee.

4. Resale purchases or exempt purchasing

Practical rule:

  • Colorado's standard retail license allows both retail and wholesale sales, so a seller that makes both does not need a separate wholesale license in addition to the retail license.
  • The reviewed public beginner pages did not present one single plain-language ordinary-retailer resale-document workflow for vendor paperwork.
  • Practical safe rule: re-check the current Sales Tax Guide, sales and use tax forms page, and any supplier instructions before submitting resale paperwork instead of assuming one static certificate workflow from another state applies in Colorado.

5. Entity tax treatment

Inference note:

  • Colorado's public business income tax pages route C corporations, S corporations, and partnerships through different filing paths.
  • Based on those reviewed public pages, Colorado's business-income-tax filing path generally tracks the entity's federal tax classification.
  • If the founder later elects S corporation or C corporation treatment, re-check the Colorado business-income-tax filing path before the next return cycle.
  • The one-line statement that Colorado generally follows federal classification is an inference from the reviewed Colorado business-income-tax guidance pages, not a single quoted sentence from one beginner page.

6. Entity filing-fee or franchise-tax rule

The recurring Colorado entity-maintenance filing identified in the reviewed public sources for the default LLC path is the Secretary of State Periodic Report.

  • The recurring Colorado entity-maintenance filing identified in the reviewed public sources for the default LLC path is the Secretary of State Periodic Report.
  • No separate Colorado franchise tax filing was identified in the reviewed official public sources for the ordinary in-state single-member LLC path as of April 29, 2026.
  • Re-check this branch if the entity later elects corporate tax treatment or expands into a more complex tax posture.

7. If the founder changes entity type later

Re-check Colorado tax accounts, trade names, bank documents, and Facebook Marketplace tax identity fields at the conversion moment.

  • Re-check Colorado tax accounts, trade names, bank documents, and Facebook Marketplace tax identity fields at the conversion moment.
  • The reviewed public starter pages did not provide one one-line rule for whether every ownership or entity-type change requires a brand-new Colorado sales-tax account, so treat this as a required verification step instead of assuming.
Back to top Next: Facebook Marketplace account and operations
Platform setup Facebook Marketplace account and operations Use this section for the Facebook Marketplace-specific account, plan, eligibility, and operations work. Everyone 5 steps

  1. Step 9: If you hire employees, handle payroll registrations and insurance

    Platform step 1

    If you do not hire anyone yet, skip this for now.

    Why it matters: If you hire:

    • register for Colorado unemployment through MyBizColorado when you become liable,
    • keep the Colorado workers' compensation requirement visible as soon as employees are involved,
    • as of April 29, 2026, Colorado's reviewed FAMLI employer FAQ says premiums are based on 0.88% of wages, and employers with fewer than 10 employees nationwide are not required to pay the employer share,
    • and Colorado's paid-sick-leave law remains a live policy branch if you hire.

  2. Step 10: Create your Facebook Marketplace seller setup

    Platform step 2

    Have these ready:

    Why it matters: Public setup flow: Important Facebook Marketplace friction:

    • an adult main profile with Marketplace access
    • phone number
    • email address
    • government-issued ID
    • address information
    • tax information if Meta asks for it for shipped checkout
    • payout information for whatever shipped-checkout payment flow Meta presents to the seller
    • Public Meta access rules say Marketplace is intended for consumers and say businesses that list on Marketplace may be blocked or have listings removed.
    • Public Meta shipping pages are specifically written for individual sellers.
    • Do not assume a broad public business-seller or Shop onboarding flow applies to the default beginner path.
    • Confirm that Marketplace access works from your main profile.
    • Create an Item for sale listing with photos, price, and product details.
    • Decide whether the listing will stay local or whether you can enable shipping and checkout.
    • If you are eligible for shipping, complete the identity and tax-information prompts and review payout setup.
    • Publish a simple first listing and keep the first launch small.

  3. Step 11: Choose the right platform cost model

    Platform step 3

    Facebook Marketplace does not use a normal public monthly seller subscription plan for ordinary listings.

    Why it matters: What the public record says as of April 29, 2026: What that means practically:

    • no public monthly Marketplace seller plan was identified for ordinary listings,
    • the public Seller Protection, Performance, and Accountability Policies page says Individual Sellers using onsite checkout are charged a fee of 5% per transaction, with a minimum fee of $0.40,
    • the same public merchant-policy page says the fee is calculated on the full transaction amount, including item price, shipping fees, and applicable taxes,
    • and no public universal listing fee was identified for local-only Marketplace transactions.
    • Your real pricing question is not basic vs pro plan.
    • Your real pricing question is local cash or person-to-person selling versus onsite checkout selling fee plus any shipping-label cost or return friction.

  4. Step 12: Complete the fulfillment branch that matches your lane

    Platform step 4

    You have two practical first-launch paths:

    • Option 1: Local meetup or local pickup: Best if your account does not have shipping access or you are testing locally.
    • Option 1: Local meetup or local pickup: What you need:
    • Option 1: Local meetup or local pickup: a safe meetup routine
    • Option 1: Local meetup or local pickup: clear message records
    • Option 1: Local meetup or local pickup: a payment method you understand
    • Option 1: Local meetup or local pickup: tax and recordkeeping that match your actual Colorado branch
    • Option 1: Local meetup or local pickup: Important caution:
    • Option 1: Local meetup or local pickup: Public Meta responsibility pages say a local sale through an individual seller is between the buyer and seller.
    • Option 1: Local meetup or local pickup: Public Meta pages do not offer returns and refunds from Facebook for local pickup purchases.
    • Option 1: Local meetup or local pickup: Do not assume Purchase Protection or seller protection covers local or off-platform deals.
    • Option 2: Shipped checkout on Facebook: Best if your account is eligible and you want the cleanest public Meta operating lane.
    • Option 2: Shipped checkout on Facebook: What the public record says:
    • Option 2: Shipped checkout on Facebook: Buyers pay securely on Facebook and you ship directly to the buyer.
    • Option 2: Shipped checkout on Facebook: Public Meta pages support both Meta-generated shipping-label flows and an own label flow.
    • Option 2: Shipped checkout on Facebook: Public seller-protection policy says an Individual Seller must use a Meta-generated shipping label and ship within the published shipping or handling window to qualify for Shipping Protection.
    • Option 2: Shipped checkout on Facebook: Public merchant-policy pages say that if an individual seller does not fulfill an order within 3 business days from purchase, the order may be automatically canceled by Meta.
    • Option 2: Shipped checkout on Facebook: Public shipping-performance guidance says Cancellation Rate should stay below 10%.
    • Option 2: Shipped checkout on Facebook: Practical beginner recommendation:
    • Option 2: Shipped checkout on Facebook: If shipping is available to your account, this is the better first Facebook Marketplace business lane than trying to mix local cash deals, off-platform payments, and unclear tax treatment on day one.

  5. Step 13: Confirm product and policy eligibility before scaling

    Platform step 5

    Before you scale, confirm four different things:

    Why it matters: Important public Meta policy rules:

    • Marketplace listings must comply with Meta's Commerce Policies and Community Standards.
    • Marketplace is for physical products, not services.
    • Public examples say animals, medical and healthcare products, and recalled products are not allowed.
    • the item is lawful in Colorado
    • the item is lawful in Denver if local rules matter
    • the item is allowed by Meta's Commerce Policies and Community Standards
    • the item really fits the ordinary physical product Marketplace lane
Back to top Next: Local permits and Denver branch
Local branch Local permits and Denver branch These local and city checks can still change the answer even after the state and platform path is clear. Location-specific 2 branches

Local permits and location checks

Colorado pushes many real-world licensing, tax, and location questions down to cities and self-collected local tax offices.

  • Colorado pushes many real-world licensing, tax, and location questions down to cities and self-collected local tax offices.
  • For any place where the business will operate:
  • check MyBizColorado,
  • check city or county business offices,
  • check local zoning or planning offices,
  • check whether the city is self-collected for sales tax,
  • and check whether a local home-business or local tax registration applies.
  • Typical local risk areas:
  • home occupation permits
  • inventory storage
  • recurring buyer pickups
  • delivery traffic at a residence
  • city or county business licensing
  • self-collected local sales tax
  • local use tax

Denver Appendix

If the business operates in Denver, add one more review layer.

  • If the business operates in Denver, add one more review layer.
  • Denver says if you intend to do business from your home and use your home address as a business address, you must obtain a zoning permit for a home occupation.
  • Denver says Online Retail Sales are allowed as a home occupation only if the transaction originates on and is completed via an individual website or third-party online marketplace, and those sales cannot include transferring goods directly to a buyer at the residential premises.
  • Denver also says home-occupation permissions depend on the actual zoning code and zone district, so address-specific review still matters.
  • Denver says a business located in the city that makes retail sales needs a Denver sales-tax license even if it operates from a residence.
  • Denver says a business that does not require a Denver sales-tax license may still need a Denver consumer use-tax account if it uses, stores, distributes, or consumes taxable tangible personal property, products, or services in the city.
  • Local caution:
  • If the founder plans regular buyer pickups at home in Denver, do not assume that a Facebook Marketplace listing alone makes that zoning-safe.
  • If the founder is outside Denver, do not assume the Denver branch answers the exact local office or tax question for another Colorado city.
Back to top Next: Employees and insurance
Optional branch Employees and insurance Use this branch if you plan to hire or need the insurance follow-up that comes with scaling. Only if hiring or scaling 5 branches

1. Employer registration

Colorado says most employers are required to pay UI premiums if either of the ordinary liability thresholds is met:

  • Colorado says most employers are required to pay UI premiums if either of the ordinary liability thresholds is met:
  • at least $1,500 in wages in a calendar quarter during the current or previous calendar year, or
  • at least one person employed for any part of a day in 20 weeks during the current or previous calendar year.
  • Colorado says businesses can register for an unemployment account online through MyBizColorado.
  • Colorado says quarterly wage detail reports, monthly employment data, and premium payments are due by April 30, July 31, October 31, and January 31.
  • Colorado new-hire reporting is due within 20 calendar days after the date of hire or by the first regularly scheduled payroll if that payroll date is later.

2. Workers' compensation

Colorado says workers' compensation insurance is required for all employers operating in Colorado, with limited exceptions.

  • Colorado says workers' compensation insurance is required for all employers operating in Colorado, with limited exceptions.
  • Colorado says an uninsured employer can be fined up to $500 for every day without required coverage.
  • Colorado also says the business may be shut down and may have to pay the claim itself plus an additional penalty if an employee is hurt while uninsured.
  • keep the Colorado workers' compensation requirement visible as soon as employees are involved,

3. Disability, paid leave, or similar coverage

Colorado FAMLI applies to most private-sector employers with Colorado employees.

  • Colorado FAMLI applies to most private-sector employers with Colorado employees.
  • As of April 29, 2026, the reviewed Colorado FAMLI employer FAQ says premiums are based on 0.88% of wages.
  • Employers with fewer than 10 employees nationwide are not required to pay the employer share under the reviewed FAQ.
  • Colorado's paid-sick-leave law separately requires at least 1 hour of accrued paid leave per 30 hours worked, up to 48 hours per year.

4. Exemption certificate if applicable

Colorado's reviewed public workers' compensation pages identify a rejection-of-coverage branch for a contractor with no employees who meets the criteria and chooses to reject coverage.

  • Colorado's reviewed public workers' compensation pages identify a rejection-of-coverage branch for a contractor with no employees who meets the criteria and chooses to reject coverage.
  • That rejection branch is not the default path for an ordinary Facebook Marketplace business with employees.

Insurance reality

Physical-product sellers should still think about general liability and product-liability coverage early, especially if inventory, shipping, or meetup risk is meaningful.

  • Physical-product sellers should still think about general liability and product-liability coverage early, especially if inventory, shipping, or meetup risk is meaningful.
  • No public universal Facebook Marketplace liability-insurance threshold or seller-wide insurance mandate was identified in the reviewed official public sources on April 29, 2026.
  • Carrier, landlord, warehouse, event, or commercial-lease requirements can still create separate insurance obligations even if Facebook Marketplace itself does not publish one universal threshold.
Back to top Next: Ongoing compliance calendar
Stay compliant Ongoing compliance calendar Keep the recurring compliance checks and live-operating routine visible after launch. Everyone 5 groups

Before first sale

  • Finish the Colorado entity or trade-name branch.
  • Get the EIN and bank account.
  • Resolve the actual Colorado sales-tax-license and resale branch that matches the selling lane.
  • Check Denver or other local zoning, permit, and city-tax branches if applicable.
  • Confirm the live Marketplace access and shipping eligibility from the actual seller account.

Before first live launch

  • Confirm the product is allowed and accurately described.
  • Decide whether the listing is truly local or shipped checkout.
  • If shipping, complete identity and tax-information prompts and review the live Meta fee, return, payout, and shipping-label pages.
  • Finish meetup, payment, shipping, and recordkeeping setup.
  • Start with one or two accurate low-risk listings.

Monthly

  • Reconcile payments, fees, refunds, and chargebacks.
  • Track whether the sales pattern stayed inside the original Colorado tax and local-rule assumptions.
  • Re-check whether any direct sales, local pickup, or inventory-storage change reopened a Colorado licensing or local-branch question.

Quarterly

  • If Colorado assigns you a filing cadence because you hold a state sales-tax license, file on that cadence.
  • Review whether your sales mix changed enough to alter the Colorado marketplace-only answer.
  • Review whether home-based inventory, deliveries, or meetups still fit your local rules.

Annual

  • File the Colorado Periodic Report if applicable.
  • Re-check Denver or other local renewal, zoning, and city-tax obligations if the address or operating pattern changes.
  • Re-check live Meta fee, protection, payout, and shipping-help pages before scaling.
Back to top Next: Common mistakes
Avoid these Common mistakes These are the repeated beginner errors called out in the research pack. Everyone 6 mistakes

Common Mistakes New Operators Make

  • Assuming a Colorado seller can ignore state sales-tax licensing just because a marketplace platform sometimes collects tax in a different branch.
  • Treating local cash, off-platform payment, and shipped checkout on Facebook as the same legal and operational lane.
  • Treating Denver home-business, zoning, and no-home-pickup limits as optional when operating from a residential Denver address.
  • Assuming your real Facebook account will definitely have shipping, checkout, payout, or protection features just because public help pages describe them.
  • Buying inventory for resale before you have settled the actual Colorado license and resale-document posture that matches your sales lane.
  • Treating Facebook Marketplace like a dedicated business-storefront program and ignoring Meta's public warning that business listings can still be blocked or removed.

Practical first-launch recommendation

If you are casually testing low-risk items and understand the personal-liability tradeoff, sole proprietor can work.

If you intend to run repeat sales, hold inventory, or treat Facebook Marketplace as a real business channel, single-member LLC is usually the better long-term path in Colorado.

If your account is eligible for shipped checkout on Facebook, that is the strongest public-source fit for a beginner Colorado marketplace-only path. If you plan local meetup, local pickup, cash, Venmo, Zelle, or other off-platform payment, treat that branch more cautiously and finish the Colorado license analysis before launch.

Back to top Next: Full official source directory
Full appendix Full official source directory Every official source row from the research pack, kept in its full table structure. Everyone 52 rows

Source group

Statewide Start

State of Colorado

State start-here page

Form / portal Business portal landing page
Fee None for the page
Timing First planning step
Who needs it Everyone

State portal that routes founders to filing, licensing, and business resources.

Open official link

Department of State

State business portal

Form / portal MyBizColorado
Fee Varies by filing
Timing Before formation and tax registration
Who needs it Everyone

Official one-stop filing tool for Colorado business registration and management.

Open official link

Colorado Secretary of State

State small business support hub

Form / portal Checklist and guidance page
Fee None for the page
Timing Optional early planning step
Who needs it New founders

Official checklist that routes founders to tax, employment, licensing, and maintenance issues.

Open official link

Source group

Entity Choice and Formation

Colorado Secretary of State

Compare business types

Form / portal Guidance page
Fee None for the page
Timing First decision
Who needs it Everyone

SOS startup FAQ explains trade-name filing and directs founders to other filing paths.

Open official link

Colorado Secretary of State

Formation hub

Form / portal Business filing hub
Fee Varies
Timing Before launch
Who needs it Filing entities

Official SOS filing hub for new entities, trade names, periodic reports, and related filings.

Open official link

Colorado Secretary of State

Default entity formation filing

Form / portal Articles of Organization
Fee $50
Timing At formation
Who needs it single-member LLC founders

Public instructions confirm the LLC naming, principal-office, registered-agent, and consent requirements.

Open official link

Colorado Secretary of State

Ongoing entity maintenance

Form / portal Periodic Report
Fee $25; late penalty $50; delinquency cure $100
Timing Annual, based on the entity's periodic-report month
Who needs it Reporting entities such as LLCs

Colorado says the report can be filed two months before or two months after the periodic-report month without penalty.

Open official link

Source group

Sole Proprietor and Name Filings

Colorado Secretary of State

Sole proprietor baseline

Form / portal Trade Name Statement
Fee $20 filing; $5 renewal
Timing Before using a business name
Who needs it Sole proprietors using a trade name

Colorado requires a trade name when an individual is not using the individual's legal first and last name to conduct business in Colorado.

Open official link

Colorado Secretary of State

Trade name filing page

Form / portal Online filing page
Fee $20
Timing At filing
Who needs it Individuals using a trade name

Public filing page shows the filing fee and filing type directly.

Open official link

Source group

Federal and State Tax Setup

IRS

EIN overview and online application

Form / portal EIN online application
Fee Free
Timing Early in setup
Who needs it LLCs, employers, founders who want an EIN

IRS says you can get an EIN directly from the IRS in minutes for free if eligible.

Open official link

IRS

EIN paper form

Form / portal Form SS-4
Fee Free
Timing If not applying online
Who needs it Founders using mail or fax

IRS reference page for the current SS-4 form and instructions.

Open official link

Colorado Department of Revenue

State tax registration

Form / portal MyBizColorado or CR 0100
Fee License fee varies by start date; as of April 29, 2026, one-location standard retail license starting January-June 2026 is $16
Timing Before direct taxable retail sales
Who needs it Businesses needing a Colorado sales-tax license

Colorado says the license is for state and state-administered local taxes and expires at the end of each odd-numbered year.

Open official link

Colorado Department of Revenue

Registration instructions

Form / portal Standard retail sales-tax license
Fee $16 plus $50 deposit for first retail location in the January-June 2026 window
Timing During registration
Who needs it Direct retail sellers

Colorado says the retail license also covers wholesale sales for a business that does both.

Open official link

Colorado Department of Revenue

Marketplace or platform tax rule

Form / portal Guidance page and DR 1290 certification branch
Fee None for the page
Timing Before and after launch
Who needs it Marketplace sellers and multichannel sellers

Colorado says a marketplace facilitator collects and remits applicable state and state-administered local sales taxes on marketplace sales.

Open official link

Colorado Department of Revenue

Marketplace-only license FAQ

Form / portal FAQ page
Fee None for the page
Timing Before launch
Who needs it Marketplace sellers and direct sellers

Colorado says the Department does not require marketplace sellers who sell exclusively through a marketplace facilitator to have a state sales-tax license, but direct sellers still need one.

Open official link

Colorado Department of Revenue

Retail delivery fee on marketplace sales

Form / portal Guidance page
Fee None for the page
Timing Before and after launch
Who needs it Marketplace sellers and facilitators

Colorado says the marketplace facilitator, not the marketplace seller, is liable for the fee when the facilitator is liable for sales tax on the marketplace sale.

Open official link

Colorado Department of Revenue

Retail delivery fee general rules

Form / portal Guidance page
Fee None for the page
Timing Before direct delivered sales
Who needs it Retailers and facilitators delivering into Colorado

Page explains the qualified business exception and general retailer liability rules.

Open official link

Colorado Department of Revenue

Resale or exemption certificate branch

Form / portal Re-check current resale or exemption documentation on the action date
Fee None for the page
Timing After licensing if applicable
Who needs it Sellers buying inventory for resale

The reviewed public beginner pages clearly explain licensing but do not present one single plain-language ordinary-retailer resale-document workflow, so this branch is intentionally flagged for action-date verification.

Open official link

Source group

Entity Tax Maintenance

Colorado Department of Revenue

Entity tax treatment

Form / portal Guidance page
Fee None for the page
Timing During planning and when tax elections change
Who needs it Business owners comparing tax treatment

Colorado's public entity-tax guidance separates C corporation, S corporation, and partnership filing paths.

Open official link

Colorado Secretary of State

Recurring entity fee schedule

Form / portal Periodic Report and other filing fees
Fee Varies
Timing During formation and annual maintenance
Who needs it Filing entities

Fee schedule lists the periodic-report fee, late penalty, and delinquency-curing fee.

Open official link

Source group

Federal Reporting

FinCEN

BOI or other federal reporting status

Form / portal BOI guidance page
Fee None
Timing Check before filing
Who needs it Everyone forming an entity

As of April 29, 2026, FinCEN says all entities created in the United States are exempt from BOI reporting under the March 26, 2025 interim final rule.

Open official link

Source group

Employees, Payroll, and Insurance

Colorado Department of Labor and Employment

Employer registration

Form / portal MyBizColorado unemployment registration
Fee None stated on reviewed pages
Timing When first becoming an employer
Who needs it Businesses hiring employees

Colorado says businesses may register online through MyBizColorado for an unemployment account.

Open official link

Colorado Department of Labor and Employment

UI premiums and wage reporting

Form / portal MyUI Employer+ / UI account
Fee Premium-based
Timing Quarterly
Who needs it Businesses liable for UI

Colorado explains the ordinary UI liability thresholds and annual rate assignment.

Open official link

Colorado Department of Labor and Employment

Workers' compensation

Form / portal Coverage through insurer or approved self-insurance path
Fee Premium-based or varies
Timing Before or at hiring
Who needs it Employers

Colorado says required employers can be fined up to $500 per day if uninsured.

Open official link

Colorado FAMLI

Paid family and medical leave

Form / portal My FAMLI+ Employer
Fee As of April 29, 2026, FAQ states 0.88% of wages
Timing Quarterly; annual headcount update due by February 28
Who needs it Employers with Colorado employees

Employers with fewer than 10 employees nationwide are not required to pay the employer share under the reviewed FAQ.

Open official link

Colorado Department of Labor and Employment

Paid sick leave

Form / portal Guidance page
Fee None for the page
Timing Ongoing at hiring and employment
Who needs it Employers

Colorado says employers must provide at least 1 hour of accrued paid leave per 30 hours worked, up to 48 hours per year.

Open official link

Source group

Platform Setup

Facebook Help Center

Marketplace access and profile requirement

Form / portal Marketplace access rules
Fee None for the page
Timing Before planning the channel
Who needs it All potential sellers

Public page says Marketplace is for adults, uses the seller's main profile, and says businesses may be blocked or have listings removed.

Open official link

Facebook Help Center

Basic listing setup

Form / portal Listing flow
Fee None for the page
Timing Before first listing
Who needs it All sellers

Public page shows the Item for sale listing flow.

Open official link

Facebook Help Center

Local versus shipping split

Form / portal Selling overview
Fee None for the page
Timing Before choosing a lane
Who needs it All sellers

Public page says a seller may also be able to offer shipping depending on where they live.

Open official link

Facebook Help Center

Shipped-checkout setup

Form / portal Shipping and checkout setup
Fee Selling fee applies if a sale happens
Timing Before using shipped checkout
Who needs it Eligible individual sellers

Public page says buyers pay securely on Facebook and the seller ships directly to the buyer.

Open official link

Facebook Help Center

Shipped-checkout identity verification

Form / portal Seller verification flow
Fee None for the page
Timing During shipped-checkout setup
Who needs it Eligible individual sellers

Public page says shipping and prepaid-label features are not available to all users and lists acceptable ID, address, and SSN or ITIN proof.

Open official link

Facebook Help Center

Payout and shipping-payment structure

Form / portal Payout-help article
Fee None for the page
Timing During shipped-checkout setup
Who needs it Eligible individual sellers

Public page preserves that shipped-checkout payouts use a Meta-managed payment flow; do not assume one universal payout rail beyond the public pages you re-check on the action date.

Open official link

Facebook Help Center

Tax-form guidance for shipped checkout

Form / portal Tax-form help page
Fee None for the page
Timing During shipped-checkout setup and tax season
Who needs it Eligible shipped-checkout sellers

Public page references 1099-K, 1099-MISC, and payment-processor tax reporting.

Open official link

Facebook legal page

Platform pricing and seller protection

Form / portal Public merchant-policy page
Fee 5% per onsite-checkout transaction, minimum $0.40
Timing At signup and before pricing
Who needs it Individual Sellers using onsite checkout

Public page says the selling fee applies to the full transaction amount including shipping and applicable taxes.

Open official link

Meta policy pages

Product policy stack

Form / portal Policy stack
Fee None for the page
Timing During sourcing
Who needs it All sellers

Marketplace listings must comply with Commerce Policies and Community Standards.

Open official link

Source group

Fulfillment, Logistics, and Operations

Facebook Help Center

Shipping performance

Form / portal Marketplace Insights guidance
Fee None for the page
Timing Before and after launch
Who needs it Eligible shipped-checkout sellers

Public page says shipping is not available to all users and that Cancellation Rate should stay below 10%.

Open official link

Facebook Help Center

Own-label shipping option

Form / portal Shipping workflow
Fee Carrier cost varies
Timing During shipped-checkout setup
Who needs it Sellers using their own labels

Public page confirms an own label flow exists, but do not assume it carries the same seller-protection treatment as Meta-generated labels.

Open official link

Facebook Help Center

Returns posture

Form / portal Returns help page
Fee None for the page
Timing During setup and disputes
Who needs it Sellers using onsite checkout or local pickup

Public page says Facebook does not offer returns or refunds for local pickup purchases.

Open official link

Facebook Help Center

Chargeback posture

Form / portal Chargeback help page
Fee $20 chargeback fee if buyer wins
Timing During disputes
Who needs it Sellers using onsite checkout

Public page says the card issuer decides chargeback outcomes and that disputed amounts are deducted from pending payouts during review.

Open official link

Facebook Help Center

Category, compliance, or product restriction guide

Form / portal Policy help page
Fee None for the page
Timing During sourcing and setup
Who needs it All sellers

Public page says Marketplace listings must comply with Meta's Commerce Policies and Community Standards, and Marketplace is for physical products, not services.

Open official link

Facebook Help Center

Local-sale safety posture

Form / portal Safety guidance
Fee None for the page
Timing Before local sales
Who needs it Local Marketplace sellers

Public page preserves the in-person safety and suspicious-activity warning posture for local deals.

Open official link

Source group

Insurance Checkpoint

Meta public policy review

Platform insurance threshold or requirement

Form / portal Public merchant-policy page
Fee Premium varies
Timing Re-check before scaling
Who needs it Physical-product sellers

No public universal seller liability-insurance requirement was identified in the reviewed public Meta pages on April 29, 2026.

Open official link

Source group

Denver Branch

City and County of Denver

Home-business zoning permit

Form / portal Home occupation zoning permit
Fee Varies by permit path
Timing If business is in Denver and uses a home address
Who needs it Denver-based home businesses

Denver says a home-based business using the home address as a business address must obtain a zoning permit for a home occupation.

Open official link

City and County of Denver

Home-based online-retail limitation

Form / portal Online Retail Sales home-occupation guidance
Fee Included in permit review
Timing Before offering home pickup
Who needs it Denver-based online retail sellers

Denver says Online Retail Sales as a home occupation cannot include transferring goods directly to a buyer at the residential premises.

Open official link

City and County of Denver

City tax or permit warning

Form / portal Denver sales-tax license / Denver use-tax branch
Fee No license fee currently charged for the biannual retailer's license
Timing If business is in Denver
Who needs it Denver-based retailers

Denver says a business located in Denver that makes retail sales needs a Denver sales-tax license even if operating from a residence.

Open official link

City and County of Denver

City business-tax information hub

Form / portal Business-tax information and e-services
Fee Varies by tax
Timing During local setup and renewals
Who needs it Denver-based businesses

Denver's business-tax information page routes users to tax forms, e-services, and voluntary-disclosure help.

Open official link

Source group

Facebook Marketplace Tax, Checkout, and Responsibility Notes

Facebook Help Centre

Local-sale responsibility warning

Form / portal Public Help Centre page
Fee None for the page
Timing Before relying on local meetup
Who needs it Local Marketplace sellers

Public English-language Meta page says local Marketplace sales through an individual seller are between the buyer and seller. This is one reason the Colorado pack keeps local meetup separate from shipped-checkout assumptions.

Open official link

Facebook Help Center

Secure onsite-checkout posture

Form / portal Shipping and checkout help page
Fee Selling fee applies if a sale happens
Timing Before using shipped checkout
Who needs it Eligible individual sellers

Public page says buyers pay securely on Facebook and the seller ships directly to the buyer.

Open official link

Facebook legal page

Selling fee and seller-protection limits

Form / portal Public merchant-policy page
Fee 5% fee, minimum $0.40
Timing Before pricing and before launch
Who needs it Eligible onsite-checkout sellers

Public page says seller protection is currently available only in the US and limited to eligible items with a sale price of $2,000 or less.

Open official link

Facebook Help Center

Returns and local-pickup limit

Form / portal Returns help page
Fee None for the page
Timing During launch and disputes
Who needs it Sellers using onsite checkout or local pickup

Public page says Facebook does not provide returns or refunds for local pickup purchases.

Open official link

Facebook Help Center

Shipped-checkout tax forms

Form / portal Tax-form help page
Fee None for the page
Timing During tax season
Who needs it Eligible shipped-checkout sellers

Public page references 1099-K, 1099-MISC, and payment-processor reporting.

Open official link

Facebook Help Center

Chargeback posture

Form / portal Chargeback help page
Fee $20 buyer-win chargeback fee
Timing During disputes
Who needs it Sellers using onsite checkout

Public page says the card issuer decides the outcome and that a buyer-win result deducts the disputed amount and chargeback fee.

Open official link
Back to top