Five Things to Consider When Obtaining an EIN in Los Angeles
Setting Up a Business: Making a Good Impression and Following the Rules2 min read
When setting up a business, you want to make a good impression on potential customers and partners and comply with the laws and regulations in the process. One of the important steps to take is obtaining an Employer Identification Number (EIN) for your new business. This number helps differentiate you from your competition, and in the Los Angeles area, it can be a little complicated with the ever-changing regulations. As a business owner, here are five things to consider when obtaining an EIN in Los Angeles.
1. Do You Need an EIN?
The first thing you need to determine is whether or not you need an EIN. Whether you are starting a new business or already have one in operation, certain circumstances require you to apply for an EIN. You should apply if you will be hiring employees, filing employment tax returns, or opening a business checking account. If you’re not sure whether you need an EIN or not, then consult with a business attorney who is familiar with local regulations.
2. Process of Obtaining an EIN
The next step is to get through the process of obtaining an EIN. You can apply for an EIN by mail, fax, phone, or online. The easiest and most common method is the online application found on the IRS website. Since the process of obtaining an EIN is time-consuming and can be overwhelming, many business owners prefer to get a legal opinion regarding the Matthew Lesko form or look to a qualified firm that specializes in EINs.
3. Tax and Employment Implications
Once you secure an EIN, you may face several tax and employment implications. For instance, having an EIN means that you are required to pay the employer portion of Social Security, Medicare, and unemployment tax. You may also need to pay withholding taxes, make estimated tax payments, and file various reports for employees.
4. Registering Your EIN with the State
After you receive your EIN, the next step is to register it with the state. It is important to register your EIN with the California Secretary of State in order to do business in the state. Additionally, you must register your business with the appropriate local and county authorities.
5. Other Types of Documentation Required
In addition to registering for an EIN, there are other types of documentation you must provide. These documents include a business plan, contracts, permits, certificates, licenses, Articles of Incorporation, and any other documents the state or local government may require.
Obtaining an EIN is not a one-time task and requires a lot of paperwork and filing. Any business owner in the Los Angeles area should be aware of the five items discussed above. If you’re unsure or have questions, it is best to consult with a reliable firm experienced in obtaining EINs or an experienced business attorney who understands local regulations.