Colorado Sales Tax License: Essential Details For LLCs (Oct. 2026)

Launching a Limited Liability Company (LLC) in Colorado offers several benefits, including a supportive tax environment and access to a skilled workforce. That said, operating legally also requires meeting specific licensing obligations, particularly those related to taxation.

A Colorado Sales Tax License is mandatory for any business involved in the retail sale of tangible personal property. Individuals who operate strictly as wholesalers may also obtain a license specifically for conducting wholesale transactions.

Understanding how to properly manage tax licensing is an essential step when forming your LLC. It also sets your business up for sustainable success within Colorado’s dynamic business environment and helps you clearly understand how to get a sales tax license in Colorado.

Colorado Sales Tax License Overview

If your LLC sells physical products or taxable services to customers, whether through a physical location or online, Colorado law requires you to obtain a Sales Tax License from the Colorado Department of Revenue (DOR), as mandated under C.R.S. § 39-26-103(1)(a). This license authorizes your business to collect and remit state Sales Tax, which is imposed at a rate of 2.9%.

In addition to engaging in taxable sales, the requirement to obtain a Sales Tax License depends on whether your LLC has nexus in Colorado. Review my table below for a brief overview. I will explain in more detail below.

There is both a registration fee and a renewal fee for a Colorado Sales Tax License.

• The total initial cost for the first location is $66, which includes a $50 deposit and a $16 license fee. Each additional location requires a $16 license fee.
• Sales Tax Licenses expire on December 31 of odd-numbered years, such as 2023, 2025, and 2027, unless revoked earlier by the Department. The renewal fee is $16 for each business location.

These requirements and fees are explained in more detail later in this article.

1. Sales Tax License Filing Methods

There are two approved methods for submitting your application.

• Online through MyBiz.Colorado.gov.
• With a form, by completing Form CR 0100 and submitting it by mail or delivering it in person to the Department

I will provide you with detailed instructions to fill out both the online and a physical form in the sections below.

Your expected processing time depends on your chosen application method. Your processing period could even exceed two months in some cases. Due to this, you should carefully consider your anticipated sales start date before applying for your LLC’s Sales Tax License.

How To Obtain A Colorado Sales Tax License Online?

Visit MyBiz.Colorado.gov to register and receive your Colorado Account Number on the same day. Before applying for a Sales Tax License, you need to create an online DOR account. You can use your LLC’s EIN to set up this new account.

Essentially, the portal guides you through five steps to complete registration. All entered information is automatically recorded by the system.

1. Introduction and profile.
2. Business information.
3. People associated with your business.
4. Company activities.
5. Attestation.

Now press “Start” to process your filing.

1. Licensing Questionnaires

You’ll need to answer questions regarding your filer’s details before applying for your license.

a. Pre-Filing Questions

In this section, you will need to walk through 4 steps.

a1. Confirm Business Filing

First, confirm that your LLC has been registered with the Colorado SOS.

a2. Answer Recruitment Status Question

Check “Yes” or “No” in accordance with your LLC’s operation.

a3. Enter Login Information

Next, enter your preferred login details in the required fields. You may also sign in using supported social media accounts.

a4. Check Your LLC’s Trade Tax Status

Select the appropriate box to indicate your LLC’s chosen tax status.

b. Portal Information

You will be directed to the information sheet of the portal. You will need to read through 4 notifications, including:

b1. Available Process

The portal now prompts you to create your LLC’s Sales Tax Account.

b2. Identification Proof Requirements

You must provide valid identification when completing this step. You’ll need your EIN for your account registration.

b3. CDLE UI Account Requirements

Several informational screens explaining MyBiz features and Colorado regulations will appear. You may skip these by clicking “Next.”

b4. Sales Tax Requirements

You can check the requirements to obtain a Colorado Sales Tax License here. As notified on the screen, to complete your application online, you will need to prove that:

• Your LLC sells or rents taxable goods in Colorado.
• Your LLC has a physical location in Colorado.
• Your LLC’s first date of sales is within the prior year or up to 90 days from the date you submit this application.

In case your LLC has no physical nexus in Colorado, you will need to complete the form CR 0100 and submit it via mail or in person. I have provided you with detailed instructions to fill out the form CR 0100 in the sections below.

2. Enter Your LLC’s Information

Next up, you’ll need to provide answers to questions regarding your business. Any answers you give need to match what is stated on your LLC formation docs.

a. Physical Colorado Location

First, confirm if your LLC operates from a physical location in Colorado. This is mandatory.

b. Unemployment Account

Check the “Yes-No” box in accordance with your business operations.

If you select Yes, you’ll then be prompted to answer many questions relating to your LLC’s unemployment account.

This includes the following info.

• Your LLC’s plan to file IRS Form 1099-MISC for payments made to individuals.
• LLC’s unemployment insurance coverage.
• Involvement in recruitment during a specific calendar week.
• Your LLC’s reporting of partial employment information.

c. Business Type Designation

Select your business classification as an LLC from the dropdown menu.

d. Sales Tax Verification

At this step, you will need to verify that your Employer Identification Number (EIN) has not been used to register for another Sales Tax License in Colorado.

d1. Verify Account

Since this is your first application, verify your EIN has not been used for a Colorado Sales Tax Account. Press “Verify Account.”

d2. Enter Your EIN

Enter your LLC’s EIN in the FEIN box and press “Verify Account.”

You may then continue with your Sales Tax Account application.

e. Sales Tax Number

First up, confirm that your LLC doesn’t hold an existing Sales Tax Number.

f. What You Will Need

It takes around 20 minutes to complete your Sales Tax License application on average. Be careful when refreshing this page. This is especially true if you have a slow connection.

g. Business Name On Record

At this step, you will need to insert your registered LLC name.

g1. Enter Registered Name/ID

Enter your officially registered LLC name. Your entered name must be aligned with the name that appears in your Colorado Articles of Organization. Learn more in my article on Colorado Articles Of Organization.

g2. Check Your LLC’s Recorded Information

As you input your LLC’s registered name, you will find that your LLC’s recorded information pops up in a table.

Check the information table. If the information is incorrect, click “Amend your filing with the Secretary of State.” If not, press “Next.”

h. Do You Have Worksites?

State whether your LLC operates at other locations in Colorado. Keep in mind that each additional location in Colorado requires another Sales Tax License, costing $16.

i. Enter Owner Or Partner Details

At this step, you will need to provide your LLC’s managers/members’ information through 2 actions:

i1. Add Owner/Partner

Press “Add Owner/Partner” to start your filing.

i2. Complete The Information Sheet

As the information sheet pops up on the screen, you will need to fill out the blank boxes with your LLC managers/members’ information.

So, add their full names, Social Security Numbers (SSNs) if they’re an individual or Employer Identification Number (EIN) if they’re an entity, alongside each member’s official title.

j. Special Situations

You can simply go to the next section if no special circumstances apply.

k. Withholding

Answer the relevant questions related to your LLC’s wage withholding information. Simple enough.

l. Exemption

You can select “Next” to skip this part. I highly advise speaking with a professional regarding unemployment insurance premiums. This helps you get the most accurate info.

m. Tax Filing Type

Carefully choose your LLC’s tax filing type. It must match the info stated when registering for your EIN.

n. FEIN/EIN

You will need to confirm that your LLC has acquired an EIN/FEIN and input the data.

Note: To get an EIN, you can apply quickly and for free using the official IRS website.

n1. Confirm EIN

Press “Yes.”

n2. Enter EIN

Input your LLC’s EIN to continue the account setup.

o. Mailing Address

Enter both your Mailing Address and Place of Business address. A P.O. box is allowed for mailing purposes only.

Verify your mailing address by pressing “Verify Address.”

You can use the mailing address that is registered in your Colorado Articles of Organization by pressing “Use Existing Address.”

p. Physical Address

Add your business location’s physical address info. Alongside this, add the key contact for that location.

p1. Enter Physical Address

Your business address needs to be a verified physical location. This is required and must be completed before moving on to the next step.

Select “Use Existing Address” to use the physical address registered in your Colorado Articles of Organization.

p2. Enter Location’s Contact Information

Finally, enter your location’s contact details as the primary point of communication.

3. Declare Your LLC’s Business Activities

You need to notify the Colorado DOR regarding your business activities. This includes the following things.

a. Primary Activity

First up, choose the category that best aligns with your daily business operations.

b. Products And Services Selection

Complete the questionnaire regarding your products and services. Keep the following definitions in mind.

• A marketplace may be physical or digital. It can include stores, booths, websites, catalogs, or sales applications, for example. These platforms are used to sell, lease, or rent personal property, commodities, or services.
• A Marketplace Facilitator refers to an individual or legal entity that runs a marketplace.

c. Products And Services Details

Provide a short description of the products or services your LLC provides.

d. Choose A Sales Activity

Choose the option that best describes your LLC’s sales activity in the dropdown box.

e. Filing Frequency

You can choose to file your sales tax annually, quarterly, or monthly by selecting an option in the dropdown box.

f. First Planned Day Of Sales

Now, enter your intended start date for sales. This date must fall within one year before filing or no more than 90 days after submission.

g. Months Of Operation

Lastly, specify your LLC’s operating months. If your business is seasonal, confirm this status and list the months you will actually be operating.

4. Give Your LLC Members And Employee Details

During this step, you’ll be asked to confirm if your LLC takes on non-partner employees.

5. Confirmation Of Authorization

This step is the last one. You need to validate that you are authorized to submit the application and confirm that all provided information is accurate.

After that, you can proceed with submitting payment for your license application through 2 main actions:

a. Attestation

After entering your registration details, verify your authorization and confirm all information is correct.

b. Payment

The system will then post the fee to your account, completing the filing process.

b1. Select A Payment Method

The National Identification Card (NIC) secures your payment information. You can pay using:

• A debit or credit card.
• An electronic check.

b2. Enter Billing Information

Finally, enter your details as the filer. The portal processes your payment and issues your license within one business day.

How To Submit The Sales Tax License Application (Form CR0100)?

As I said above, complete Form CR 0100 to get your Sales Tax License. Once completed, you can file it with the DOR via mail, email, or in person. Alternatively, apply online via MyBiz.Colorado.gov.

I’ve provided a clear, step-by-step guide below. This should help you complete Form CR 0100 with no issues.

Download Form CR 0100 from the section above to get things started. You should see six sections labeled A to F. I’ve explained how to fill out each section correctly below.

1. Section A

In this Section, you will need to complete 3 main tasks:

a. Box 1: Reason For Filing This Application

In Box 1, select “Original Application for a New Business” as your filing reason.

b. Box 2: Indicate Type Of Organization

Then, check the “Limited Liability Company (LLC)” box to designate your business type.

2. Section B: Business Information

In this Section, you will need to walk through the following steps:

• Enter your LLC’s basic information.
• Provide your LLC’s place of business.
• Provide your LLC’s mailing address (if different from the principal address).

In Section B, since you are filing for your LLC, leave box 1 blank.

a. Enter Your LLC’s Basic Information

Complete lines 2a and 2c using the LLC details exactly as listed in your Articles of Organization.

If your LLC has a fictitious name, you can enter it in line 2b.

b. Proof Of Identification

On line 3, choose one of the permitted identification options.

All sales tax and withholding account filings need to include valid identification. Approved forms include a Colorado driver’s license or state identification card, and an out-of-state driver’s license or identification card. You can also provide a United States passport, a permanent resident card, United States naturalization documents, or a military identification card.

If the application is completed by someone other than the LLC owner, partner, member, or officer, more information will be required. That said, a copy of valid identification for the owner, partner, member, or officer who signed the application must also be included.

c. Principal Place Of Business

Then you will need to fill out lines 4, 5, and 6 with your principal place of business information.

c1. Enter Your Principal Place Of Business Details

Next, enter your Principal Place of Business details in lines 4a, 4b, 5, and 6. Again, ensure this information matches what appears in your Articles of Organization.

Keep in mind that a P.O. box isn’t accepted in this field.

c2. Select Email Notification Options

You may also select your preferred email notification options by ticking the relevant boxes.

d. Mailing Address

If your Mailing Address differs from the principal address, provide the details in lines 7a, 7b, and 7c.

e. Enter Your LLC’s Officers

You have to list your LLC members in lines 8a, 8b, and 8c. These fields are required and should contain the exact details shown in your Articles of Organization. If your LLC has more than 1 member/manager, you can add additional members/managers in other papers.

f. Business Acquisition Or Purchase

You can skip lines 9a, 9b, 9c since your LLC is newly established, not purchased or acquired.

3. Section C

In this Section, you will need to walk through the following steps:

a. Indicate Type Of Sale

In Section C, select your LLC’s type of sale (retailer or wholesaler) by ticking the appropriate boxes in line 1.

b. Enter Your LLC’s Expected Tax Filing Frequency

You will need to provide the information regarding your sales tax filing frequency.

b1. Line 2a: License Start Date Or First Day Of Sale

Then enter your projected start date in line 2a. Ensure this date falls no more than one year before your filing date and no later than 90 days after it.

b2. Line 2b: Filing Frequency

Next, choose your preferred sales tax filing frequency in line 2b.

c. Complete The Sale Questionnaire

In line 3, you need to answer all questions related to your LLC’s products, services, and business activities. You can do so by selecting the appropriate checkboxes.

• A marketplace may be physical or digital. It can include locations such as stores, booths, websites, catalogs, or sales applications. These platforms sell, lease, or rent tangible goods, commodities, or services.
• A Marketplace Facilitator refers to an individual or legal entity that operates such a marketplace.

Note: If your LLC sells both medical and recreational marijuana, you must submit a separate application for each category.

d. Provide Your LLC’s Specific Products/Services Information

In line 4, provide a concise description of your LLC’s products, services, and/or overall business function. These details are used to assign the correct North American Industry Classification System (NAICS) code. Additionally, they ensure you receive accurate tax information and updates relevant to your business type.

The NAICS field is optional, and you may search for your appropriate NAICS code at http://www.naics.com/search.

4. Section D

In Section D, check the boxes if your LLC hires workers or is required to register for a wage withholding account.

5. Section E

Section E will show the coverage period, which the DOR completes. You can confirm the fee using the previous table or the Standard Retail License reference.

• Your state Sales Tax deposit equals $50.
• Your tax license fee is $16, whether you register as a wholesaler or retailer.
• The total amount due is $66.

Submit your payment to:

COLORADO DEPARTMENT OF REVENUE
P.O. box 17087
Denver, CO 80217-0087

6. Section F

Carefully review your form before going to Section F. This is important.

Once everything is complete, you need to sign, provide your official title, and enter your filing date.

Colorado Sales Tax License Other Requirements

1. Separate License For Each Business Location

As stated above, pursuant to C.R.S. § 39-26-103.(2).(a), a retailer that operates two or more distinct business locations within Colorado must obtain a separate sales tax license for each location.

2. Display Rule

After obtaining or renewing your Sales Tax License in Colorado, you’ll need to display it in a visible area at your place of business. If your LLC operates from multiple locations, each site should show its own Sales Tax License.

Who Must Obtain A Sales Tax License In Colorado?

A retailer must obtain a Colorado sales tax license whenever it has nexus with the state, meaning it is considered to be “doing business” in Colorado.

Nexus is established either through a physical presence, such as selling, leasing, delivering, or conducting any activity in Colorado related to taxable goods or services, or through economic nexus, which applies when the retailer, despite having no physical location in Colorado, exceeds the state’s annual threshold for retail sales made into Colorado during the current or previous calendar year.

1. Physical Presence Nexus

You’re considered to be “doing business” in Colorado if you’re a retailer. In this case, you’ll need to meet the state Sales Tax licensing and collection requirements. This applies when maintaining a place of business in the state directly, indirectly, or via a subsidiary.

Common examples include offices, warehouses, distribution centers, salesrooms, storage facilities, or a home office of a state employee.

2. Economic Nexus

A retailer with no physical presence in Colorado is subject to Colorado sales tax licensing and collection requirements once it exceeds the state’s economic nexus threshold, which is met when its retail sales of tangible personal property, commodities, or services into Colorado reach $100,000 or more in either the current or previous calendar year. All retail sales count toward this threshold, even if some sales are not taxable.

If a retailer was below $100,000 in the prior year but surpasses $100,000 during the current year, it must obtain a Sales Tax License and begin collecting Colorado Sales Tax starting on the first day of the first month at least 90 days after exceeding the threshold, and it is liable for all applicable tax on subsequent sales even if it fails to register on time. If the retailer exceeded $100,000 in the prior year, it is required to be licensed and collect Sales Tax for the entire current calendar year.

When And How To Renew Your Sales Tax License?

Keep in mind that Sales Tax Licenses expire on December 31 of odd-numbered years (Such as 2023, 2025, and 2027). This remains true unless the Department revokes them earlier.

The renewal fee is $16 for each business location.

You have three available methods to renew your Sales Tax License, which I explain in the section below.

1. Online Renewal

You can complete your Sales Tax License renewal through Revenue Online using the same account created during your original application.

Note that submitting a payment alone doesn’t renew your license. If you don’t yet have a Login ID, you need to create a sales tax account before your renewal deadline.

You can pay the $16 renewal fee for each license using an e-check or credit card. Completing the renewal through Revenue Online gives you an email confirmation, along with a list of all licenses successfully renewed. When you renew online, you don’t need to submit a paper renewal application.

2. Electronic Funds Transfer Renewal

You’re also able to use the Electronic Funds Transfer (EFT) method to renew your Sales Tax License. The payment system functions as the renewal request AND the application, meaning you complete everything in one handy transaction. Visit the official EFT webpage to begin.

Don’t submit a paper renewal form if you renew via EFT. This would result in a duplicate filing.

3. Paper Form Renewal

Alternatively, you can renew your license by completing the Renewal Application for Sales Tax License (Form DR 0594). Please find the form attached here.

Fill out Form DR 0594 and submit it either by mail or in person at any Taxpayer Service Center.

Make sure to include a check or money order with your application. The renewal fee remains $16 for each business location.

If your LLC operates more than one sales location, each one should maintain its own separate license and renewal.

How Much Is A Sales Tax License In Colorado?

LLCs that operate as both retailers and wholesalers must pay a $16 license fee for each business location. The fee is adjusted according to the issuance date.

At the time of application, your LLC also pays a $50 deposit. For the first location, the total initial Sales Tax License cost is $66. If you open additional locations, you’ll need to pay another $16 license fee for each new site. That said, you don’t pay an extra $50 deposit for those additional locations.

• When a license is issued after June 30, Colorado prorates the fee in six-month increments. You can use the table above to check the exact prorated amount.
• Each sales tax license stays valid for about two years. It covers the year of issuance and the entire following year, through December 31.
• You are required to complete the State of Colorado Sales Tax License renewal before January 1 of the new renewal cycle. At renewal, you pay a $16 fee for every business location that is still operating.
• If you have no sales activity for 12 straight months, the state will automatically not renew your license.

The Department refunds the $50 deposit after a few essential milestones. These include your LLC starting business operations, filing all required sales tax returns, and paying the tax owed. You will also need to remit more than $50 in state sales tax overall to get the $50 deposit back.

Why Are LLCs Required To Get Sales Tax Licenses?

Under C.R.S. 39-26-103, anyone operating a retail business in Colorado must secure a Sales Tax License. You should get one from the Colorado Department of Revenue before conducting any sales. State law strictly prohibits retail activity without this license.

1. Civil Penalty

Sales Tax collected by a retailer is legally seen as “public money” owned to the state or relevant local authority. This is important. In this case, retailers should hold these funds in trust and transfer them to the DOR.

Failing to do this is considered to be a “serious violation.” This can lead to potential penalties.

Retailers conducting sales without a valid license may incur a civil penalty of $50 per day under C.R.S. 39-26-103(4). This is capped at $1,000.

Under this, the DOR may also take away a Sales Tax License when you fail to meet state obligations. However, they’ll first need to issue a notice and hold a formal hearing. Doing this allows a retailer to resolve the violation before it escalates.

2. Interest And Extra Tax Penalties

Retailers are responsible for all Sales Tax owed even if they don’t collect it at the time of sale. This applies regardless of whether your license was obtained.

However, there is a caveat. If your transaction qualifies for a lawful exemption, you won’t need to worry about this. Even so, it’s vital that you obtain adequate licensing and collect taxes as required in most cases.

If a retailer fails to file sales tax returns or doesn’t pay the tax due, the Department of Revenue can impose further penalties. These include a 10% charge on unpaid tax plus an additional 0.5% per month, up to a maximum of 18%. Additionally, interest will continue to accumulate on any outstanding balance until full payment is made.

Essential Contact Details: The Colorado Department Of Revenue

You can reach the Colorado Department of Revenue by calling the taxpayer helpline at (303) 238-7378.
Taxpayer Service Representatives are available Monday through Friday, from 8:00 a.m. to 4:30 p.m. (Mountain Time).

Frequently Asked Questions