A wholesaler, or wholesale trader or merchant, operates a business selling partly, primarily, or exclusively durable goods (e.g., furniture, clothing, and things that can be used repeatedly), or nondurable goods (e.g., printing paper, food, periodicals) to retailers, institutions, contractors, or commercial users. A person, partnership, company, or any kind of business entity that acts as a wholesaler requires a wholesale license in the state of Colorado in order to operate. Colorado wholesalers can obtain a license for wholesale sales within the Colorado Department of Revenue when they complete the process for business registration, as done when filing for a standard sales tax license. It is not a separate license, but rather a standard sales tax license indicating that the business will be in wholesale.
Obtain a standard sales tax license to register your business (Colorado business registration form). You can find the necessary form for a sales tax license on the website for the Division of Taxation within the state of Colorado’s Department of Revenue. Complete the application as per the instructions. Mail the form to the Colorado Department of Revenue, or bring it into any of the designated walk-in service locations, as noted on the standard sales tax license form. Pay the required licensed fee, which varies depending upon the year you began operating your business, but will cost at least $16.
Be prepared with information providing proof of identification at the time that you apply for business registration (whether by mail or in person), which could be a Colorado driver’s license, a U.S. passport, or a military identification (ID) card, among other forms of identification specified on the Colorado business registration form.
Follow specific tax instructions for wholesalers at the end of the year upon receipt of a single tax return, in December. Remit any taxes collected on limited retail sales from throughout the year.
You can simultaneously apply for a retail license at the time of the business registration (completing the standard sales tax license form). Remember to submit an addition $50 deposit with your application.