How To Get A Tax ID (EIN) In Colorado
Did you know that all LLCs and business entities in Colorado are required to obtain an EIN? An EIN stands for Employer Identification Number, sometimes referred to as a Tax ID Number, a Federal EIN (FEIN), or a Federal Tax ID Number. Your FEIN is a 9-digit number issued by the IRS to identify your business for tax purposes.
Do not confuse it with the Colorado Tax ID number, commonly known as the Colorado Account Number (CAN). It is issued by the Colorado Department of Revenue.
Applying For An EIN In Colorado
Every business entity must obtain an EIN number, including these legal structures:
- Limited Liability Company (LLC)
- Nonprofit Organizations
- Church Organizations
- Single-member LLC and Sole Proprietorships
Most banks will require businesses in Colorado have an EIN number to open a business bank account or apply for loans. If you own a small business, you may consider seeking financing support from a bank, so you should secure an EIN number as soon as you can. You will also need an EIN number in Colorado to file tax returns with the Internal Revenue Service.
Ensure You Have All Required Information
First, begin by gathering some essential details about the organization for which you are applying for a Tax ID Number.
Identify one responsible party (the person who exercises full control over the business entity) to register for the EIN Number in Colorado.
- If you are in the U.S., you can apply for your EIN online using your Social Security Number (SSN).
- If you don’t have an SSN, you may apply for your EIN by mail.
You will also be required to provide information about the organization, which includes the name, address, and business activities.
Applying for your EIN number online is easy, but this method is only limited to U.S. citizens. Simply fill in the electronic application form, review the information, and submit it. Once it has been verified and approved, an EIN Confirmation Letter (CP 575) containing your Federal Tax ID Number will be issued. You can use the number immediately to apply for bank loans and business permits in Colorado.
Send In Your Application By Mail
Are you a Non-U.S. citizen who is legally required to have an EIN number Colorado? You should then fill in Form SS-4 and mail it to the IRS along with supporting documents regarding your business entity.
There are more downsides to applying for an EIN by mail. The process is more tedious, and it can take up to 4 weeks to hear back from the IRS.
If you are not a fan of lengthy paperwork, we can help with that. We are a Third Party Designee that provides legal assistance and legal guidance to new business owners who wish to take the easier path to obtain their Tax ID Numbers from the IRS.
Frequently Asked Questions
All business entities need an EIN in Colorado. However, it is optional for single-member LLCs and sole proprietors who can use their SSN instead.
An EIN and a Colorado Tax ID Number are two different things. The EIN is used to file taxes at the federal level, while the Colorado Tax ID Number applies to state taxes.
The Colorado Department of Revenue does not issue EINs to businesses. An EIN is issued by the IRS.