Additionally, as it aids in establishing a company’s legal identity, creating a DBA in Colorado might offer legal protection. Additionally, it aids in avoiding fraud and muddle in the industry. You can open a business bank account, apply for loans, sign contracts and leases, and apply for business licenses and permits using a registered DBA.
The IRS issues each business entity with a special nine-digit number known as an EIN (Employer Identification Number) to help them be recognized. An EIN is required if a business has workers, conducts business as a partnership or corporation, or files certain tax filings. However, even if a company is exempt from this requirement, it may still decide to get an EIN for tax and banking reasons.
In Colorado, how do I obtain a tax exemption certificate? A business must first be eligible for tax exemption under state law in order to receive a tax-exempt certificate in Colorado. Typically, to qualify for exemption, an entity must be nonprofit or meet other requirements. When a company qualifies for tax exemption, it can submit Form DR 0715, Application for Sales Tax Exemption Certificate, to request a certificate. With the certificate, the company will be able to make purchases of products and services without having to pay sales tax.