Getting Your Business Started with Colorado Taxes

Before you can officially register your business and get started with taxes, you will need to decide on a business entity type. This is the formal, legal, and tax designation recognized by the state and IRS. Common types include: Sole Proprietorship, Partnership, Limited Liability Company (LLC), and Corporation.

The Department of Revenue cannot advise you about the kind of structure that is right for your business, but there are many other resources that can assist you:   

1. Get familiar with different business entity types with the following resources: 
   • IRS website
   • U.S. Small Business Administration
   • A tutorial from the Colorado Secretary of State’s office
2. If you’d like to connect with someone, please schedule an appointment with Colorado’s Small Business Development Center
3. If you are buying an existing retail business, see Colorado Sales Tax Guide: Part 11
4. Explore additional business support resources on Colorado Office of Economic Development and International Trade 

1. Register with Colorado’s Secretary of State: Create a new record.
2. Register with the IRS: Obtain a federal Employer Identification Number (EIN).
3. Apply for licenses with the Colorado Department of Revenue:
   • For in-state businesses: If your business maintains a physical location in Colorado and makes taxable sales, you must apply for a Colorado sales tax license. Your business can use MyBizColorado to apply for a sales tax license and a wage withholding license. During this step, the MyBizColorado platform will also connect you with other state agencies you may need licenses and accounts with, such as the Colorado Department of Labor and Employment if you need to set up an unemployment insurance account. 
   • For out-of-state businesses: If your business does NOT maintain a physical location in Colorado, but makes taxable sales in Colorado, you may apply for a Colorado sales tax license or register as an out-of-state employer through Revenue Online. Under the “Sales Tax License” section, click on “Out-of-State Retailer/Employer Registration.” 
   • If you prefer paper applications, please use the CR0100 form. For assistance filling out the form, view our Form CR0100 video tutorial.
4. Receive state licenses: If approved and applicable to your business, you will receive the following from the Colorado Department of Revenue:
   • Sales Tax Account Number: You will receive this online if you applied online. Otherwise, you will receive this with your Sales Tax License in the mail. Your Sales Tax Account Number is sometimes referred to as a Colorado Account Number (CAN).
   • Sales Tax License: This will arrive in the mail.
   • Wage Withholding Account Number: You will receive this online if you applied online. Otherwise, you will receive this with your Wage Withholding License in the mail. Your Wage Withholding Account Number is sometimes referred to as a Colorado Account Number (CAN).
   • Wage Withholding License: This will arrive in the mail.
5. Additional licensing with home-rule cities: Local jurisdictions have their own requirements which may require you to obtain additional licenses. Contact each local jurisdiction where you do business to confirm what licenses you may be required to hold. See a complete list of home rule cities.
6. Apply for a Special Events License: Anyone making retail sales at a special sales event must obtain a special event license with the Colorado Department of Revenue, unless the event organizer has obtained a license to collect tax on behalf of sellers. A "special sales event" is one where retail sales are made by more than three sellers at a location other than their normal business location, occurring no more than three times per calendar year. Get Started with a Special Event License.


Once your business is registered and has obtained various licenses, your next step is to set up a Revenue Online account to file, pay, and manage your Colorado state taxes moving forward.  

1. Create a Revenue Online login: Set up a login ID for your business on Revenue Online. If you have a FEIN, you may need to set up a separate Revenue Online Account for your business.
2. Add account numbers: Connect each of your tax accounts to your newly created Revenue Online account using the letter ID numbers from your licenses.
   1. Log into your business’ Revenue Online account, go to the section “Account Access” and click on “Add Access to Your Accounts.”
   2. Follow the instructions to connect each tax account your business has. Some examples of tax accounts include Wage Withholding, Sales Tax, Partnership Income Tax, and Retail Delivery Fee.
3. Add third party access: If someone other than yourself will be managing your business’ tax accounts, follow instructions to grant third party access.



If you would like more hands-on learning about Colorado taxes and specific tax issues, review the following resources:

• Full list of tax education, trainings, webinars, and recordings  
• Schedule an appointment with Colorado’s Small Business Development Center

Depending on your business, you will need to collect, file and pay a variety of taxes and fees. The Colorado Department of Revenue is here to help you understand the filing frequencies, filing methods, and payment options for each tax and fee that we administer.  

1. Sales Taxes: If you make taxable sales in Colorado, you may need to collect both state and local sales taxes. Taxable sales include but are not limited to the sale of tangible personal property, taxable services, or other taxable sales in Colorado.
Get started with sales taxes in Colorado
2. Wage Withholding Taxes: If your business pays wages to Colorado residents or employees who perform work in Colorado, you likely need to collect wage withholding tax from employee salaries. Get started with wage withholding taxes in Colorado
3. Business Income Taxes: Any business that generates income may need to file a Colorado income tax return matching the entity type of that particular business. Get started with business income taxes in Colorado
4. Other Taxes and Fees: Depending on the nature of your business, you may need to file and pay additional taxes and fees. Other Colorado taxes and fees include, but are not limited to: consumer use tax, lodging taxes for short-term rentals, marijuana taxes, and retail delivery fee.
Get started with all other taxes in Colorado

If your business has a state sales tax license, you will need to renew the license every 2 years. Most licenses are valid for a two-year period and expire on December 31 of every odd-numbered year (e.g., 2025, 2027, and 2029). You will automatically receive a mail and email reminder prior to when your next renewal is due. If you’d like to learn more, please visit: Renew Your Sales Tax License.