Applying for an EIN: A Comprehensive Guide for Los Angeles Businesses
If you’re in business in Los Angeles, you need to be aware of the legal ramifications of your operations3 min read
If you’re in business in Los Angeles, you need to be aware of the legal ramifications of your operations. Knowing when you need to apply for an Employer Identification Number (EIN) is one key part of this process. An EIN is required of all businesses that have employees, as well as corporations and limited liability companies (LLCs)—but what else do you need to know? We’ve made this comprehensive guide to help you understand the process for applying for an EIN.
It's important for businesses to know that an Employer Identification Number (EIN) is not the same as a tax identification number (TIN). While the two terms are sometimes used interchangeably, they are conceptually distinct. An EIN is an identification number assigned to a business by the Internal Revenue Service (IRS) for tax filing purposes, whereas a TIN refers to any government-issued identification number for the purpose of paying taxes. For the remainder of this article, we will use the term EIN when discussing government issued identification numbers.
Here’s what you need to know when applying for an EIN in Los Angeles:
Who needs to apply for an EIN?
Any business that employs workers and/or is organized as a corporation or LLC must apply for an EIN. This includes both established businesses and brand-new startups, although startups may not need an EIN until after they’ve started hiring employees.
What information do you need to provide when applying for an EIN?
When applying for an EIN, the business must provide certain information to the IRS. s of this information include the legal name of the business and its specific line of business, the name and social security number or tax identification number of the individual with signing authority, the address of the business, and the business’s type of organization.
In addition, the business must provide information about the person responsible for the day-to-day operations of the business. This person’s name and Social Security number, as well as the home address for the person, must be provided to the IRS.
How to apply for an EIN in Los Angeles?
Businesses in Los Angeles can apply for an EIN in one of two ways: online or by mail. To apply for an EIN online, the business must complete the IRS Form SS-4. In addition to providing all the required information, the business must also pay an application fee.
The alternative to applying online is to apply by mail. To do so, the business must fill out the IRS Form SS-4 and send it to the IRS by mail. This is a free method, but the process can take much longer than applying online.
What happens once you have an EIN?
Once a business in Los Angeles has an EIN, it can be used to open a business bank account, hire employees, and apply for business credit and business licenses. Having an EIN can also make it easier to file taxes.
Are there any special considerations to keep in mind when applying for an EIN in Los Angeles?
It’s important for businesses located in Los Angeles to be aware of the specific laws and regulations that apply to them. For example, businesses in Los Angeles are subject to city income tax and business license fees, in addition to any federal taxes that may apply. Businesses should also make sure to keep their EIN up-to-date with any changes in ownership or address.
Being aware of the process for applying for an EIN is essential for businesses located in Los Angeles. With an understanding of who needs an EIN, what information must be provided to apply for one, and what happens after you get an EIN, you’ll be better equipped to ensure that your business is compliant with all local, state, and federal laws.