Starting a business in Colorado is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales Tax License in Colorado, also known as a sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Colorado and remit it to the state.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
Related Topics:
Who Needs a Seller’s Permit in Colorado?
A business must register for a sales tax permit in Colorado if:- you meet physical or economic nexus within the state and
- you are selling taxable products or providing taxable services to customers in Colorado
How to Register for a Seller’s Permit in Colorado?
When applying for a sales tax license in Colorado, you can use the online application process on the Colorado Department of Revenue’s (CDOR) website to complete your sales tax registration.1. Where to Apply for a Seller’s Permit in Colorado?
The first step to register for a sales tax permit online is to go to CO Revenue Online and navigate to the “Sales Tax License” section to start your process in applying for a sales tax license in Colorado. If you are an out-of-state seller with no physical presence, you will click on “Out-of-State Retailer Registration.” If you have a physical nexus within the state, you will click on “In-State Retailer Registration.” You will then follow through the prompts that walk you through the registration process and provide the necessary information. When you get to the “Sites” section, it’s important to select all the locations you expect to sell or do business in Colorado. This step is essential because it determines the specific local areas where you’ll need to manage your tax filings, potentially across several jurisdictions. During your registration process, you will also create an online user profile with the state of Colorado. Remember the credentials you input in the “Login Information” section. You will use them to log into your CO Revenue Online account.2. What Information Do You Need to Get a Seller’s Permit in Colorado?
To successfully acquire a seller’s permit in Colorado, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in Colorado:- Business Identification Information: Legal Business Name, Physical Address, Mailing Address
- Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
- Federal Employer Identification Number (EIN or FEIN)
- Name, Address, and SSN of Owners, Partners, or Officers
- Business Activity Details: Date & State of Incorporation, Nexus Start Date
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Colorado?
Registering for a sales tax permit in Colorado varies based on the time of application:- $16 for January-June and $12 for July-December in the first year, and
- $8 for January-June and $4 for July-December in the second year.
4. What are Other Ways to Register for a Seller’s Permit in Colorado?
- Use TaxHero. Registering for a seller’s permit, mainly when it involves multiple permits, can be a tedious and time-consuming task requiring much effort. Let the experts at TaxHero save you from this hassle, and let us handle the registration process in all states where you have nexus as part of our all-inclusive sales tax service.
- Paper Application: You will need to fill out Form CR 0100, attach the necessary documents, and mail them to the address provided in the form.