Colorado Tax ID (EIN) Number Application | How to Apply Online
Looking to obtain your Tax ID (EIN) Number in Colorado? This short Colorado Tax ID Application Guide will walk you through the basic steps you need to follow to apply for your Tax ID (EIN) Number in the state of Colorado. Whether you own a Partnership, multi-member LLC, Corporation, Non-Profit, Trust or Estate, this guide will help you learn what you need to know to obtain your official IRS Tax ID Number within minutes.
Steps to Obtain your Tax ID (EIN) Number in Colorado:
- Prepare Required Information
- Apply for a Colorado Tax ID Online
- Apply for a Colorado Tax ID by Phone, Mail or Fax
- Do I Need a Tax ID (EIN) Number?
- How Do I Get a Tax ID Number in Colorado?
- Colorado State Tax ID vs Federal Tax ID
In order to apply for a Colorado state tax ID number or a federal tax ID number (EIN), you’ll need to prepare some important information.
For starters, you’ll need:
- Your business name. You should have your business name in place before you register the business. If you’re running a sole proprietorship or a partnership, you may be able to use your name or the names of your members. Otherwise, you’ll need a dedicated name.
- Names of all partners and members. You’ll need the full legal names of any business owners.
- SSNs of all partners and members. You’ll also need the social security numbers of all business owners.
- Addresses of all partners and members. The addresses of your business owners are also required, even if you’re applying online.
- Other paperwork. Though not required for the application process to be complete, it’s recommended that you have a business plan, and your articles of incorporation drafted before you proceed with the next steps of the process.
Your best option for applying for a Colorado tax ID is to apply online. The process is straight forward and can get your business registered in just a few minutes. Once you have all your information in place, you can begin the application process here. The online application will prompt you for a few pieces of information (which we’ve listed above), and ask you a few questions (such as where your state is going to be operating). After you’re finished with your application, you can get your federal tax ID or Colorado state tax ID via email in an hour or less.
You don’t absolutely have to register for your federal tax ID (EIN) or Colorado state tax ID online – you can also register by phone, by mail, or by fax. For these processes, you’ll need to either talk with someone over the phone or prepare all the paperwork by hand. For most people, this process takes considerably longer to complete than the online application. After you submit your paperwork, it typically takes 4 to 6 weeks before your business is fully registered; you’ll get your tax ID via mail when the process is complete. For these reasons, most business owners opt to apply for a Tax ID online.
At this point, you may be wondering—is it really necessary to get a federal tax ID (EIN)?
In case you aren’t familiar, your federal tax ID will serve as a kind of social security number for your business. It will register your business with the federal government, and be used for tax purposes and for registering employees. Not all businesses will require a federal tax ID, but you’ll need one in any or all of the following scenarios:
- You own a partnership or corporation. As a rule of thumb, your business will need an EIN if it’s going to employ or involve more than one person. If you’re running a sole proprietorship or an LLC with a single member, you may be able to run your business without one.
- You plan to hire employees. A federal tax ID is also called an employer identification number (EIN) because it’s used for tax obligations related to employees.
- You want to open a business bank account. Most financial establishments (and some business partners) will require you to have an EIN to open an account.
Additionally, you may need to get a new federal tax ID if you’ve acquired a business, if you’re transferring business ownership, or if you’re transforming the business.
The process for getting a tax ID number in Colorado is straightforward, though you have several options for obtaining it. The fastest and easiest way to get your tax ID is with an online federal tax ID (EIN) number obtainment services. Apply online, fill out a few fields, and you’ll get your federal tax ID by email in an hour or less.
You may also be curious about your need for a Colorado state tax ID, which is distinct from a federal tax ID number. Your Colorado state tax ID will also be a uniquely identifying number, and you’ll use it for state tax reporting. For example, you’ll need a Colorado state tax ID if you’re selling taxable goods and services in the state, if you’re hiring employees (so you can file state payroll returns), or if you’ll be responsible for excise taxes, which apply to specific types of goods (like gasoline, alcohol, or tobacco). If you aren’t doing business in Colorado, or if you don’t plan on hiring employees, you may not need a Colorado state tax ID. However, most businesses hiring employees or selling goods in the state will require both a federal tax ID and a Colorado state tax ID.
If you want to start your path to entrepreneurship as quickly as possible, apply online for a speedier process, so you can begin your entrepreneurial journey in a few hours or less!