Are you excited?
You are about to embark on an excellent adventure!
You are about to embark on an excellent adventure!
Once you know the type of business you are starting, one of your next steps should be applying for a Colorado state sales tax license. This is for state sales tax and any state-collected county, city and special district taxes that the Colorado Department of Revenue collects and distributes back to local governments.
Most Colorado state sales tax license types are valid for a two-year period and expire at the end of each odd-numbered year. Below are the types of licenses you can obtain from the Colorado Department of Revenue:
Retail Sales Tax License
A Colorado retail sales tax license is required if you are selling, renting or leasing your product to the end user of the product.
Wholesale License
A Colorado wholesaler license is required if you are selling your product to another business that will resell your product or use it as an ingredient in another product to be resold.
To apply for the Colorado Sales Tax License use MyBizColorado or
Look for the CR 0100AP on this page Sales Tax / Wage Withholding Account Application (CR 0100AP).
Single Special Event License
For a temporary location other than your regular business location and valid for one event only where there are three or more vendors; for example a city fair. This is a two-year license which is free to all standard sales tax license holders. To apply for the Colorado Single Event License prior to the event, use the Special Event Application (DR 0589).
Multiple Special Event License
If you plan on attending more than one special event, it is recommended you apply for the Colorado multiple event license Special Event Application (DR 0589). This is a two-year license which is free to all standard sales tax license holders.
Exempt Certificate for Non-profit, Charitable, School, Religious or Government Organizations
An organization should first obtain income tax exempt status 501(c) (3) from the IRS if necessary. Application for Sales Tax Exemption for Colorado Organization (DR 0715).
Exempt License For Contractors
Used only for purchasing construction and building materials for tax-exempt organization projects (building a church or a school). This license is issued only to the General Contractor. Sub-contractors must obtain a copy of the certificate from the General Contractor. For contractors who do not need a sales tax license, trade name registration and renewal is handled by the Colorado Secretary of State Business Center. To receive an exemption certificate for construction contracts with tax exempt organizations use the Contractor Application for Exemption Certificate (DR 0172). No fee is required for this exemption certificate. Certificates will be issued for maintenance contracts or non-construction projects.
Small Home Businesses
Based on the type of business you operate from your home will determine if a Colorado sales tax license is needed:
Any person or entity that will engage in the business of selling at retail must first obtain a sales tax license, unless that person or entity is specifically exempted from licensing requirements. Licensing requirements apply not only to traditional retailers, but also to charitable organizations (with certain exceptions) and individuals making regular sales out of their homes. Information about license applications and renewals is available online at Tax.Colorado.gov.
For specific information on your home based business, refer to the Sales Tax Guide.
To apply for a sales tax license online, please visit Revenue Online and follow the prompts for Sales Tax Registration
