Answers to Commonly Asked Questions About Federal ID Numbers
in the city Businesses in Los Angeles Should Familiarize Themselves with Regulations, Taxes, and Requirements3 min read
Businesses operating in Los Angeles should be aware of all of the regulations, taxes, and other requirements that go along with operating a business. One regulation that's often overlooked by Los Angeles businesses is the requirement to get a federal identification number. Many business owners have questions about federal ID numbers, such as what they are, how to get one, and why they are needed. In this article, we’ll provide answers to all of the most commonly asked questions about federal ID numbers, so you can get up to speed on this important regulation.
What Is a Federal ID Number?
A Federal ID number, also known as an employer identification number (EIN), is a unique nine-digit number assigned to businesses by the Internal Revenue Service (IRS) for the purpose of tax filing and other interactions with the federal government. While a specific name or Social Security number may change over time, your EIN remains the same, giving the IRS and other government agencies one way to keep track of your business.
What Kinds of Businesses Need a Federal ID Number?
Generally speaking, businesses in Los Angeles are required to obtain a federal ID number if they have employees or are filing taxes as a corporate entity. This includes businesses such as:
Sole proprietorships.
Limited liability corporations (LLC).
Corporations.
Partnerships.
Non-profit and charity organizations.
If your business operates in an industry that needs to file other types of forms, such as Fidelity or Pitney-Bowes Form 1099s, it may also need a federal ID number.
How Do I Get a Federal ID Number?
Getting a federal ID number is actually quite easy. The simplest way is to apply for your EIN online through the IRS. All you need to do is fill out Form SS-4 and submit it to the IRS. This process shouldn’t take more than a few minutes, and you can expect your EIN to be issued to you within a few days. If you need your EIN faster, you can apply for an EIN over the phone by calling the IRS Business & Specialty Tax Line at 800-829-4933.
Do I Need to Register My Federal ID Number?
No, you do not need to register your federal ID number with the IRS or anyone else. After you apply for your EIN, it is your responsibility to keep track of it and use it any time you are required to file taxes or other forms with the government.
Do I Need a Different Federal ID Number for Each Business?
Yes. If you have multiple businesses, each of them will need its own federal ID number. You can apply for multiple EINs through the IRS, and your application for a new EIN will need to include information about the other businesses you’ve already established.
What If I Lose My Federal ID Number?
If you have lost or forgotten your federal ID number, you can contact the IRS Business & Specialty Tax Line for help. The IRS may be able to help you retrieve your number. You can also contact an experienced business lawyer in Los Angeles if you need assistance.
To summarize
Getting a federal ID number is an important part of starting and maintaining a business in Los Angeles and beyond. It’s important to understand the regulation surrounding federal ID numbers and when you need to get one. Hopefully, this article has provided you with the information you need to ensure that you are in compliance with all regulations and able to comply with the federal government.
Topics:
