License My Business
What license(s) does a business need in Lakewood?
Businesses with economic nexus in Colorado that provide taxable services or sell, lease, rent, or deliver goods into Lakewood must collect and remit Lakewood's 3% sales tax. Businesses with a substantial presence must obtain a Lakewood Sales and Use Tax License. A business has a substantial presence when it:
- Directly, indirectly, or by a subsidiary maintains a building, store, office, salesroom, warehouse, or other place of business within the city.
- Sends one or more employees, agents, or commissioned salespersons into the city to solicit business or to install, assemble, repair, service, or assist in its products or for demonstration or other reasons.
- Maintains at least one employee, agent, or commissioned salesperson on duty at a location within the city.
- Owns, leases, rents, or otherwise exercises control over real or personal property within the City.
It is important to apply for a Sales and Use Tax License a minimum of 30 days before starting a business because applications are reviewed to ensure the business location complies with code and building requirements. More information regarding this process is available at the City of Lakewood Planning Department.
Businesses apply for a Sales and Use Tax License through Lakewood Business Pro. Businesses that don’t apply within 30 days of the start date will receive a $30 late charge.
How Much Does a License Cost?
A Lakewood Sales and Use Tax License has a nonrefundable fee of twenty ($20). The license will expire in two years, each licensee will be sent a renewal notice 90 days before the expiration date.
How Do I Determine Where My Sale Occurred?
Many of Lakewood’s zip codes are shared with other cities and should not be used to determine the location of a sale or tax rates. Colorado’s Sales Tax Lookup should be used to determine where the sale occurred, the taxability, the taxing jurisdictions, and the tax rates.
How Do I Apply for An Exempt Certificate?
The City of Lakewood allows qualifying 501(c)(3) organizations an exemption from Lakewood sales tax when they purchase goods and services for their regular charitable functions and activities. To qualify for exemption, an organization must complete an Application for a Certificate of Exemption.