Colorado Sales Tax License: How to Register a Retail Business

A Colorado retailer that is required to collect Colorado sales tax must obtain a sales tax license before making sales. This applies to an in-state retailer with a Colorado place of business and may apply to a remote seller once its Colorado sales reach the applicable threshold. Registration is handled by the Colorado Department of Revenue.

The correct registration method depends largely on the number of business locations. A business with one location may apply through MyBizColorado or submit Form CR 0100. A business with two or more locations must use Form CR 0100. The state license applies to Colorado state tax and state-administered local jurisdictions; a business operating in a self-collecting home-rule city may also need to address that city’s separate requirements.

Determine Whether the Retail Business Must Register

Start by looking at where the business operates and how it makes sales. Colorado treats a retailer that maintains a place of business in the state as doing business in Colorado, making it subject to the state’s sales tax licensing and collection requirements.

A change in business ownership also matters. If a new owner purchases an existing retail business, the buyer must obtain a new sales tax license. The prior owner’s license cannot be transferred to the buyer, even if the store keeps the same address, inventory, or public-facing business name.

Remote sellers

A retailer with no physical location in Colorado is exempt from state licensing and collection requirements when its annual Colorado retail sales are less than $100,000 in both the current and previous calendar years. All Colorado retail sales count when evaluating this threshold, including sales that are otherwise exempt.

This two-year test should be applied carefully. A remote retailer should review its Colorado retail sales for both the current calendar year and the previous calendar year rather than considering only taxable transactions or only the most recent period.

Marketplace-only sellers

A seller making sales only through a marketplace may be exempt from licensing, collection, and filing when the marketplace facilitator collects all applicable Colorado state and state-administered local sales taxes. That treatment does not extend automatically to sales through the seller’s own website, store, invoices, or other direct channels.

Businesses using a mix of marketplace and direct sales should evaluate the direct-sales portion separately. The marketplace-only exception is not a general exception for every seller that happens to use a marketplace.

Prepare the Business and Location Information

Before starting the registration, organize the information that identifies the business, its ownership, its Colorado locations, and its retail activity. Having consistent records can help prevent discrepancies between the sales tax registration and the business’s other records.

Useful information to assemble includes:

• The business’s legal name and any trade name or DBA used with customers.
• The entity type and the identifying information used for the business’s tax records.
• Contact information for the business and the person responsible for the application.
• The physical address of every Colorado retail location.
• A clear description of the products or retail activity.
• The ownership or purchase details if the applicant acquired an existing business.
• A list of sales channels, distinguishing direct sales from marketplace-facilitated sales.
• For a remote seller, Colorado retail-sales totals for the current and previous calendar years.

Location information is particularly important because Colorado requires a separate license for each Colorado business location. If the business is opening more than one site, list all locations before selecting the application method.

Businesses seeking more background on the account and identification process can review how to register for a sales tax ID in Colorado. New retailers may also find the Colorado sales tax registration guide for new businesses helpful when coordinating registration with opening preparations.

Register the Retail Business

1. Confirm that registration applies. Determine whether the business has a Colorado place of business, is a remote seller that exceeds the applicable threshold, or qualifies for the limited marketplace-only treatment. A retailer required to collect Colorado sales tax should secure the license before beginning sales.
2. Count the physical locations. Identify each Colorado business location that needs its own license. Do not treat several stores as a single licensed location merely because they share the same owner or business entity.
3. Select the permitted application method. A business with one location may use MyBizColorado or Form CR 0100. A business with two or more locations must use Form CR 0100.
4. Complete the applicable application. Form CR 0100 is the Colorado Sales Tax and Withholding Account Application. It is used to open a sales tax account or add a new physical location to an existing account. Enter business and location information consistently and review the application before submission.
5. Include the applicable fee and deposit. For standard retail license applications submitted from July 1 through December 31, 2026, the fee is $12 per physical location. A new retail sales tax account must also remit a $50 deposit with the application. The deposit applies only to the first business location.
6. Check for home-rule city requirements. Determine whether any business location or sale is within a self-collecting home-rule city. The Colorado license does not cover licensing administered separately by those cities, so the business must contact the applicable city about its local requirements.

The $50 new-account deposit is automatically refunded after the business collects and pays $50 in state sales tax. It is not multiplied by the number of locations because it applies only to the first business location.

Understand the Rules After Registration

Once licenses are issued, each Colorado business location must have its own license displayed conspicuously at that location. A license assigned to one shop should not be treated as the location license for another shop.

Expansion requires attention as well. Form CR 0100 is used not only to open a sales tax account but also to add a new physical location to an existing account. A retailer opening another Colorado storefront should address the additional location’s licensing rather than relying only on the original site’s license.

Keep the state-administered and home-rule systems distinct. The Colorado sales tax license covers the state and state-administered jurisdictions. If a retailer operates in a self-collecting home-rule city, it should contact that municipality to determine what separate local licensing steps apply. Municipal requirements can differ, so the existence of a state license should not be taken as confirmation that every local registration issue has been resolved.

The business should also maintain an internal record of which license corresponds to each location, how sales are divided among direct and marketplace channels, and how remote sales are tracked. This is especially useful when the business adds a location, begins making direct sales after operating only through a marketplace, or changes from an in-state model to a broader multistate sales model.

Practical Registration Examples

One new Colorado store

A retailer preparing to open one Colorado storefront must obtain its sales tax license before making sales. Because it has one location, it may apply through MyBizColorado or use Form CR 0100. If it submits a standard retail license application between July 1 and December 31, 2026, the license fee is $12. Because it is opening a new retail sales tax account, it must also remit the $50 deposit for its first location.

Two stores under the same owner

A retailer opening two Colorado stores needs a separate license for each location and must use Form CR 0100. For a standard retail application submitted between July 1 and December 31, 2026, two $12 location fees total $24. If this is a new retail sales tax account, the single $50 deposit applies to the first location rather than to both locations. Each issued license must be displayed conspicuously at the location to which it belongs.

Purchase of an operating shop

An entrepreneur buys an existing retail shop and continues selling the same products from the same address. The former owner’s sales tax license does not transfer with the business. The buyer must obtain a new license before making sales as the new owner.

Remote retailer below the threshold

A retailer has no physical location in Colorado and has annual Colorado retail sales below $100,000 in both the current and previous calendar years. It is exempt from Colorado state licensing and collection requirements under the remote-seller threshold. When checking the threshold, it must count all Colorado retail sales, including otherwise exempt sales.

Marketplace seller adding direct sales

A seller initially makes sales only through a marketplace facilitator that collects all applicable state and state-administered local sales taxes. It may qualify for the marketplace-only exemption. If the seller later starts taking orders through its own website, the marketplace-only treatment does not extend to that direct channel. The seller should reassess its registration position based on the direct-sales activity rather than assuming the marketplace facilitator covers every sale.