1099 Non Compete in Colorado
A data-backed guide to 1099 non compete in Colorado.
- State income tax
- Yes
on top of federal
If you are researching 1099 non compete, you are usually trying to answer one of three questions — what the work pays, how the tax treatment differs, and where to find engagements. This page answers those with published data rather than generalities, for Colorado specifically.
Papering the engagement
A contractor agreement does two jobs: it defines the commercial deal, and it evidences that the relationship is genuinely independent. Both sides benefit from the second, which is why the strongest agreements read less like an offer letter and more like a purchase order for a defined outcome.
Scope, deliverable, acceptance criteria, rate and payment terms cover the commercial deal. Independence comes from what is absent as much as what is present: no set hours, no reporting line, no company equipment, no restriction on other clients.
Clauses to read closely before signing:
- Payment terms and late-payment interest — net-30 is normal, net-60 is a financing decision
- Intellectual property assignment, and whether it is limited to the deliverable
- Indemnification, and whether it is mutual or one-way
- Termination notice on both sides, and payment for work in progress
- Non-compete and non-solicit scope, duration and geography
- Insurance requirements, and who is named as an additional insured
What you can be held to
Non-compete enforceability against independent contractors varies sharply by state — some will not enforce them at all, others enforce them only where narrowly drawn as to time, geography and scope. A clause that is unenforceable is still a clause you can be sued over, so the cost of a bad one is legal fees even when you win.
Confidentiality obligations are different and are generally enforceable against contractors on much the same terms as employees. Read the definition of confidential information: one drafted broadly enough to cover your own pre-existing methods can follow you to the next client.
The biggest 1099 occupations in Colorado
Across the 81 occupations 1099WORK tracks, Colorado has an estimated 307,202 people working on a 1099 basis, out of 967,830 employed in those occupations altogether. The concentration is uneven: software developers, registered nurses, and secretaries and administrative assistants account for a disproportionate share, because those trades are structurally independent rather than incidentally so. The 1099 estimates below apply 1099WORK's per-occupation contractor share to BLS employment — they are estimates, and BLS itself does not publish the split.
| Occupation | Total employed | Est. 1099 | Median pay | 1099 rate to match |
|---|---|---|---|---|
| Software Developer | 48,980 | 14,694 | $134,540 | $107.85/hr |
| Registered Nurse | 54,510 | 13,628 | $96,520 | $77.37/hr |
| Virtual Assistant | 29,690 | 13,361 | $47,430 | $38.02/hr |
| Cleaner | 36,250 | 12,688 | $37,270 | $29.88/hr |
| Home Health Aide | 40,190 | 12,057 | $37,420 | $30.00/hr |
| Sales Rep | 31,290 | 10,952 | $77,830 | $62.39/hr |
| Truck Driver | 27,840 | 9,744 | $60,260 | $48.30/hr |
| Handyman | 23,220 | 9,288 | $51,130 | $40.99/hr |
| Landscaper | 22,960 | 9,184 | $44,950 | $36.03/hr |
| Customer Service Rep | 45,890 | 9,178 | $46,020 | $36.89/hr |
| Marketing Specialist | 30,000 | 9,000 | $80,670 | $64.66/hr |
| Accountant | 35,580 | 8,895 | $90,030 | $72.17/hr |
The best-paying 1099 work in Colorado
Software Developer leads on median pay in Colorado at $134,540, with the top decile at $210,760. The table below is filtered to occupations where independent work is genuinely common — a high median in an occupation that is 95% W-2 is not an opportunity. Remember that every figure is a W-2-and-1099 blend: to match them as a contractor, multiply by roughly 1.33 for payroll tax, unpaid time and self-funded benefits.
| Occupation | Median pay | 90th percentile | Est. 1099 share |
|---|---|---|---|
| Software Developer | $134,540 | $210,760 | 30% |
| Medical Sales Rep | $132,010 | $223,910 | 45% |
| Programmer | $124,880 | $193,790 | 35% |
| Consultant | $104,990 | $188,980 | 40% |
| Occupational Therapist | $103,970 | $145,770 | 30% |
| Technical Writer | $103,960 | $136,930 | 45% |
| Physical Therapist | $100,240 | $127,870 | 30% |
| Architect | $95,620 | $161,990 | 30% |
| Financial Advisor | $85,580 | $181,000 | 50% |
| Marketing Specialist | $80,670 | $159,450 | 30% |
Where in Colorado
Colorado is not one market. Denver is the largest at 3.1 million people , but Greeley is growing fastest at 11.5% since 2020. The 1099 estimates below apply 1099WORK's per-occupation contractor shares to BLS employment across the tracked occupations in each metro.
| Metro | Population | Est. 1099 workers | Growth since 2020 |
|---|---|---|---|
| Denver | 3.1 million | 179,430 | +2.8% |
| Colorado Springs | 778,000 | 33,584 | +2.5% |
| Fort Collins | 375,000 | 17,368 | +4.1% |
| Greeley | 370,000 | 11,174 | +11.5% |
| Boulder | 330,000 | 19,545 | -0.2% |
| Pueblo | 170,000 | 5,748 | +0.9% |
| Grand Junction | 161,000 | 6,270 | +3.4% |
Tax, in short
Nothing is withheld from a 1099 payment. You pay self-employment tax at 15.3% on 92.35% of net profit, plus income tax, in four estimated payments a year. Colorado adds its own income tax and its own estimated-payment schedule on top.
Finding Colorado engagements
1099WORK is a marketplace built for 1099 engagements specifically: companies post a defined scope, independent contractors keep one verified profile, and agreements, onboarding and payment happen in the same place. It launched as 1099REPS for independent medical sales reps and now covers the wider 1099 economy, Colorado included.
Frequently asked questions
Do I need an LLC to work 1099 in Colorado?
No. A sole proprietor can accept 1099 work under their own name and Social Security number, and many contractors start that way. An LLC adds liability separation and lets you elect S-corp taxation once profit is high enough for the payroll-tax saving to beat the extra filing cost. Colorado sets its own formation fee and annual report requirements.
Is 1099 work better than a W-2 job in Colorado?
It depends entirely on rate and stability. 1099 wins on control, deductibility and upside; W-2 wins on predictability, benefits and unemployment cover.
How often do 1099 contractors pay taxes in Colorado?
Quarterly. The IRS expects estimated payments in mid-April, mid-June, mid-September and mid-January, and charges an underpayment penalty for missing them even if you pay in full at filing. Colorado runs its own estimated-payment schedule alongside the federal one.