If you’re starting a new business in Colorado, here is some helpful information and some relevant resources:
I believe you’ll need to register with the IRS and get an Employer Identification Number (EIN). I believe you’ll also need register with the Colorado Secretary of State to get a wage withholding license and a sales tax license. See their Checklist for New Businesses. A Colorado State income tax account is established when you file your first return.
You’ll need to license with the Colorado Department of Revenue. To do so, see their “Sales Tax Accounts & Licenses” section under the Sales & Use Tax Information page.
You can use the State’s address verification system (provided by TTR) to confirm what town or city and other local jurisdictions are applicable. This is the same system to use to confirm Colorado customers’ addresses and the current local jurisdictions’ rates.
The Department of Revenue doesn’t require retailers to register separately with state-collected local jurisdictions to collect local sales taxes, but some of these jurisdictions still require a business license.
If you are in a home-rule city, you can get to their specific website for sales tax and licensing information by scrolling down once on my State Sales Tax Revenue Departments page. Note: Home-rule jurisdictions can and often do differ from the State on taxability.
Don’t Miss Use Tax! The Department of Revenue doesn’t include use tax return filing under your Revenue Online account. From the main page, don’t login. Just click File a Consumer Use Tax Return. Colorado State use tax returns are due at least annually, and sooner if you reach $300 in use tax due. See our Blog Colorado State or Local Use Tax? for more detailed information.
For additional information, see these other resources from the Colorado Department of Revenue:
- Sales & Use Tax FAQs
- Sales & Use Tax Information (State & state-collected)
- Colorado Sales Tax Lookup (Address verification)
- Sales Tax Changes
If you need additional information or help properly complying, please Contact Us.
Disclaimer: This information is provided as a courtesy and cannot be considered complete or comprehensive. The conclusions and recommendations contained in our Tax Tips and Blogs may be based upon our experience and understanding as well as on tax authorities which are subject to change and/or varying interpretation. Sales Tax Colorado LLC accepts no liability for reliance upon such information. Check with the relevant taxing authority for specific taxability determination, etc.