Durango, CO asked in Employment Law, Tax Law and Business Law for Colorado

Q: I'm curious what I would need to do, legally, to be able to have a vendor booth at biker rallies in different state

I currently own and operate a tour company in Colorado and have a vendor booth set up here. I would like to be able to travel state to state to different biker rallies with my booth and be able to be a vendor in different places throughout the Summer.

1 Lawyer Answer
Kevin Michael Strait
Kevin Michael Strait
Answered
  • Fort Collins, CO
  • Licensed in Colorado

A: Unless you become a part of a single organization that has already arranged rallies is various states, you will need to register with each rally you pan to attend. Each state (and each county or city) will expect you to hold a license to do business in that state and collect sales taxes. You may need additional approval if you are vending food or offering any services that require a permit in that city or county.

The good news is your Colorado business entity is valid in all states. No need to start a business entity in each state you visit.

The onerous license requirement from each state usually includes registering for a tax ID number, filing some kind of revenue and remittance statement, and (potentially) subjecting your inventory to state tax. Taxes are the big headache of your plan. Every rally's vendor agreement will say something about owing taxes on sales made in that state and almost all state require an in-state tax ID.

Some rallies hold two events a year (Myrtle Beach, SC and Panama City Beach, FL come to mind) and may allow you to register for both events in one set of paperwork.

Talk to your accountant or CPA about scheduling a summer's worth of rallies and file for the tax ID and vendor license in each state. No need to find professional help in each state; a good Colorado accountant can help you file the paperwork for each rally you plan to visit.

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