Getting an EIN: An Executive Guide for Los Angeles Businesses
Obtaining an Employer Identification Number: An Essential Financial Task for Businesses2 min read
Starting and managing a business comes with many administrative and financial tasks, with one of the most important being obtaining an Employer Identification Number (EIN). This unique nine-digit code, issued to businesses by the Internal Revenue Service (IRS), serves as a business's identifying number for tax and banking purposes. Acquiring an EIN is a relatively straightforward process that requires basic information about company finances and structure, but it can also be time-consuming if you don't have the right guidance. This article will discuss what is needed to get an EIN, the determining factors behind who should apply for an EIN, and where you can find legal support in Los Angeles, California to guide you along the way.
What is an EIN?
An EIN, also known as a Federal Tax Identification Number (FTIN), is a nine-digit code issued by the Internal Revenue Service (IRS) to identify and keep track of business entities. It is required for companies of any size that file taxes, but also has other purposes, such as opening a business bank account. Additionally, EINs are used by companies to identify their payroll holders, process payroll taxes, and declare taxes on employee benefits and compensations. EINs are also a critical part of the identity verification process for various US business-related activities, such as building a credit profile, applying for a business loan, and carrying out US financial transactions.
Who Needs an EIN?
Not every business needs to apply for an EIN: Sole proprietorships may be able to use the social security number (SSN) of the owner instead, though they may still be required to get an EIN depending on their type of business and state of incorporation. Companies required to have an EIN include corporations, partnerships, joint ventures, and other entities such as LLCs and nonprofit organizations. In all of these cases, the EIN will be used for the purposes of filing taxes, applying for business loans, and verifying the company’s identity.
How To Obtain an EIN
If your business requires an EIN, the process is easy and should take only a few minutes. The application for an EIN is done through the IRS website. The applicant will be asked to provide basic information about the business, such as its name, type of entity, address, and other details. The form needs to be entirely filled out, and applicants receive their EIN in about 24 hours.
Where To Find Legal Support in Los Angeles
Small business owners and other business professionals in Los Angeles who are in need of assistance with their EIN application or related legal matters can use UpCounsel. This online marketplace connects clients with experienced lawyers from the Los Angeles area, allowing clients to find assistance quickly and easily. UpCounsel offers a range of services, from single consultations to full-blown freelance legal departments, to ensure that businesses have access to the legal support they need. All of UpCounsel’s attorneys have an average of 14 years of experience and are rated and reviewed by their clients, making it easy to find the best fit for your legal needs.