Colorado Tax ID (EIN) Number Application
The process to apply for a Tax ID (EIN) Number in Colorado is easier than ever before. You just need to know your information and the information of your partners in the organization to get the process going. Once you have the Colorado Tax ID Application Manual at your fingertips, filling out the online application form will take just a matter of minutes and you will have your Tax ID Number in under an hour.
Apply Online by Choosing Your Entity Type
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 Obtain a Tax ID Number for a Small Business?
- How Do I Get a Colorado State Tax ID Number?
1. Prepare Required Information
To make the process as smooth as possible, you’ll need to gather all the requisite information beforehand.
For starters, you’ll need your name, your legal address, and your social security number (SSN). You probably have this information memorized.
You’ll also need to gather the full legal names, legal addresses, and SSNs of anyone else who directly owns or is a founding member of your business (for example, your partners in a partnership or an LLC).
Finally, you’ll need to have your business’s name chosen. The process of obtaining a tax ID is a way of registering your business with the government, so it’s important to have the business name finalized.
2. Apply for a Colorado Tax ID Online
Once you have all the required information available, you’ll be ready to begin the next step of the process- applying for your tax ID. Most business owners wish to complete this process expediently, so they can begin business operations as soon as possible. In line with those goals, the most effective way to apply for your tax ID is to do so online.
The process for applying for your tax ID online is simple. The application is a questionnaire, which will prompt you for the pieces of information you gathered in the previous section. Depending on that information’s availability, and your ability to navigate the website, this process should only take a few minutes. When you’re finished with the application, you’ll need to wait for it to process, which could take as little as an hour. Once that application is finished processing, you’ll receive your tax ID via email, so you can start your business.Apply for a Colorado Tax ID Number
3. Apply for a Colorado Tax ID by Phone, Mail or Fax
Applying online isn’t the only route to obtain a federal tax ID. You can also apply for a tax ID through a traditional communication method, like phone, mail, or fax. These methods tend to be more time-intensive, and offer no significant advantages over applying online, but they are available to those who want them. Depending on which route you choose, you’ll either fill out a paper form or answer the same questions over a phone call. The real disadvantage is the length of time it takes to process these applications; in some cases, it can be as long as 4 to 6 weeks.
4. Do I Need a Tax ID (EIN) Number?
You may be wondering whether it’s really necessary to have a federal tax ID number, otherwise known as an employer identification number (EIN) for your Colorado business. The shortest answer is “probably.”
It isn’t strictly necessary to have a federal tax ID number for your business unless you meet one or more of several criteria. For example, as its other name (employer identification number) suggests, you’ll need one if you plan to hire employees- that’s because your tax ID serves as a unique identifier for your business, enabling you to withhold taxes from your employees. You’ll also need an EIN if your business involves more than one person; some sole proprietorships and LLCs with a single member can get by without one, but if you have a partnership, LLC with multiple members, or corporation, you’ll definitely need one.
You’ll also need a federal tax ID if you plan on filling out applications for licenses, permits, or business partnerships; this serves as a kind of social security number for your business. This number is also usually necessary if you’re applying for a business bank account or opening a line of credit.
5. How Do I Obtain a Tax ID Number for a Small Business?
Getting a tax ID number is a way of registering your business with the federal government. Accordingly, they need to obtain and verify several pieces of information about you, your partners, and your business overall. That’s why the application process exits.
As alluded to earlier, there are several distinct methods for obtaining your tax ID, but some are more advantageous than others. While it’s possible to apply for your tax ID via conventional process like a mailed or faxed application, or over the phone, your best bet is still going through the application process online. As long as you have the right information available (i.e., your business name, along with the names, addresses, and SSNs of you and your partners), you can complete the process in an hour or less, and obtain your tax ID via email.
6. How Do I Get a Colorado State Tax ID Number?
In addition to a federal tax ID number, you may also need a Colorado state tax ID number. Though the names are similar, these are actually two distinct ID numbers- and merely applying for one won’t automatically grant you the other.
Like your federal tax ID, your Colorado state tax ID will serve as a unique identifier for your business. However, you’ll use your state tax ID for different applications. You’ll need one if you plan on hiring Colorado employees, and you’ll also need one if you plan on selling taxable goods and services in the state of Colorado. This is also used to register for excise taxes, which apply to certain regulated products like tobacco and alcohol.
Many businesses will require both a federal tax ID and a Colorado state tax ID. You can apply for your Colorado state tax ID with similar methods as your federal tax ID application; you can apply online, though the process may take considerably longer for state tax IDs.