Does Your Business Need a Wholesale License in Colorado?
The short answer is that you need a seller’s permit in Colorado if your business is involved with selling “tangible personal property” anywhere in the state. The definition of tangible property includes digital products such as e-books and videos.
With a few exceptions, you do not need a sales tax license if you sell services. Exceptions include sales of food and drink from public dining establishments, gas and electric service, and intrastate telephone service. Businesses involved in short-term room rentals are also subject to sales tax licensing requirements.
Real property and intangible personal property (e.g., deeds, stocks, contracts) are considered non-taxable. Transactions involving these do not require a sales tax license.
In general, if you’re a retailer located in Colorado, you must have a wholesale license. You’re considered to have a presence in Colorado if you sell, lease, deliver, store, or distribute taxable goods or services in the state. Even if you have no physical location in the state, you must have a sales tax license if you advertise or have representatives operating here.
However, retailers are exempt from the sales tax license requirement if they have no physical location here and generate retail sales under $100,000/year.