How to Obtain an EIN Number in Colorado

You must get an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) if you are beginning a business in Colorado. An EIN is a special nine-digit number given to your company for tax-related reasons. To open a bank account, submit taxes, and recruit staff, you will require an EIN. Here is a guide on how to obtain an EIN in Colorado.

The IRS website is the best and quickest place to apply for an EIN. The online form is open round-the-clock and is free. Basic information regarding your company will need to be provided, such as the legal name, address, and kind of business entity. You will get your EIN right away after submitting your application.

You can download Form SS-4 from the IRS website and submit it by mail or fax if you want to apply by mail or fax. The IRS may need up to four weeks to process your application and provide you an EIN using this approach.

The Colorado Secretary of State does not require sole proprietors to register. However, you might need to apply for licenses or permits from regional and local organizations depending on the nature of your firm. For instance, your local government may require a Home Occupation Permit if you are beginning a home-based business.

Before registering your company with the Colorado Secretary of State, you must receive an EIN from the IRS if you are incorporating a corporation, partnership, or LLC in Colorado. It is advisable to keep your personal and business money separate if you are a sole entrepreneur but you are not obligated to obtain an EIN. Do I Need to File a Business Tax Return in Colorado?

Even if a company has no revenue or operations in Colorado, it is nevertheless obligated to file a tax return there. The kind of business entity you have will determine the kind of tax return you file. A partnership or LLC must file a Colorado partnership/LLC income tax return, whereas corporations must file a Colorado corporate income tax return.

You must submit updated Articles of Organization to the Colorado Secretary of State in order to add an owner, also known as a member, to your Colorado LLC. In addition to the new member’s name, address, and ownership stake, you must also disclose their details. A filing fee is furthermore due. The new member will be included in the LLC after the updated Articles of Organization are approved.