Colorado is like most states in that it imposes a sales tax to raise revenue. Businesses collect the tax from customers and then send it to the state. A Colorado business first needs to file for a sales tax permit. It then gets a tax ID number to use on sales tax returns and other business tax documents.
First, you should file any new businesses with the Colorado Secretary of State Business Division. Almost all Colorado businesses have at least some type of registration requirements with the Secretary of State. Colorado makes liberal use of online Colorado business filings for corporations and other business entities. Get more information and file at the Business Division’s web page at sos.state.co.us/pubs/business/main.html
When you have completed any registrations of new businesses, you should then check the need to get a federal employer identification number. The IRS issues these EIN numbers to all businesses with employees and certain businesses, such as Colorado nonprofit corporations, that have no employees. You can read up on EIN numbers by running a search at the IRS.gov website. Now that you have an official Colorado business name and EIN number (if applicable), you can register for a Colorado sales tax license and get a tax ID number.
In Colorado, you fill out an application for sales tax with the Colorado Department of Revenue Taxation Division. Use the “Online Sales Tax Filing Service” at https://www.colorado.gov/apps/dor/tax/sales/home.jsf. With this online service, you can get a Colorado sales tax permit and also pay your taxes online through your bank account.
Open the sales tax forms page at colorado.gov/cs/Satellite/Revenue/REVX/1178305465894. Get the forms necessary for filing sales tax and submitting payment. Of course, you can pay online using the Colorado sales tax registration system discussed above.
Figure the Colorado sales tax rate for your business taxable sales. As of 2010, the Colorado sales tax rate is 2.9 percent. But some cities and counties impose an additional tax collected by the state. Still other cities and counties independently collect their sales taxes. You need to ask your city and county tax offices if this situation applies to your local sales. File those Colorado business taxes separately if that is the case.
Collect sales tax from your customers. Send the forms and money to the Colorado Department of Revenue before the deadline dates.
Colorado Sales Tax Forms