Getting Started with an EIN Number in Los Angeles
Starting a business for the first time can be overwhelming from both an operational and legal standpoint3 min read
Starting a business for the first time can be overwhelming from both an operational and legal standpoint. One of the first steps when you start your business is obtaining a Employer Identification Number (EIN). Known as a Tax ID, it is essential for any Los Angeles business owner as it serves as a unique nine-digit identifier for taxes, banking, and more.
If you're a business owner in Los Angeles, the process can be rather confusing at first. Read on in this article in order to learn more about how to get started with obtaining an EIN, the importance of it, and useful resources to consider.
What Is an EIN Number and What Is It Used For?
An EIN is a unique identifier for a company – it’s like a Social Security Number (SSN) but for businesses instead of people. This is used to identify a business for taxation and other purposes. Not only do you need one to pay taxes, but it’s also needed to apply for business licenses. It is also used to open a bank account and apply for lines of credit.
How Do I Get an EIN Number?
Getting an EIN number is relatively straightforward, but there are still a few steps to follow. You’ll need to fill out a form with the details of your company, then submit it to the IRS. If you’re unsure about the regulations and filing requirements, you can seek out assistance from an experienced business lawyer.
In the state of California, the process is slightly more involved. You will need to apply with the California Department of Tax and Fee Administration rather than the Internal Revenue Service (IRS).
Who Should File For an EIN Number?
You should file for an EIN number if you're engaged in any type of business activity, including operating a sole proprietorship, a partnership, or a corporation. It’s also a requirement if you’re:
• An employer
• A non-profit organization
• A fiduciary
• A real estate professional
• An independent contractor
How Much Does It Cost to File for an EIN?
Filing for an EIN number does not cost anything. You only have to pay for filing if you hire assistance from a tax professional or lawyer.
Things to Consider When Working on an EIN Number
The most important thing to keep in mind is to not rush into filing for an EIN number. It’s important that you take the time to research and understand the regulations and filing requirements. Failing to do so can result in serious penalties and fines.
When you’re ready to get started with filing for an EIN, consider using the resources offered by UpCounsel. UpCounsel is an online legal services platform that connects businesses with highly experienced, pre-vetted attorneys from all over the United States. Finding experienced legal counsel for an EIN number filing can be time-consuming and expensive, but with UpCounsel, you can easily find experienced legal counsel to help you with the process.
Conclusion: Obtaining an EIN Number in Los Angeles
Every business owner in Los Angeles needs to obtain an EIN in order to pay taxes, apply for licenses, and open a bank account. The process to obtain an EIN is fairly straightforward, but it’s important to take the time to research and understand the regulations and filing requirements.
If you’re unsure of how to get started or need help during the process, consider using UpCounsel as a resource. UpCounsel can connect you with experienced attorneys who can provide you with the legal support you need.