How to Get an EIN Number in Los Angeles
Are you a business owner in Los Angeles, California, and you need to get an Employer Identification Number (EIN) for your organization2 min read
Are you a business owner in Los Angeles, California, and you need to get an Employer Identification Number (EIN) for your organization? If so, you’ve come to the right place. This guide will provide the necessary information on the basic steps to apply for an EIN and explain the importance of the number for businesses in California.
What is an EIN?
An EIN, also known as a Tax Identification Number (TIN), is a unique nine-digit number the Internal Revenue Service (IRS) assigns to employers, sole proprietors, non-profits, government agencies, trusts, and other entities, for federal tax purposes. Although businesses are not required to have an EIN number, obtaining one is essential if you plan to open a bank account in the United States, hire employees, or apply for business licenses, loans, or credits.
Steps to Acquire a California EIN
The process for applying for an EIN in California is fairly straightforward. Here’s what you need to do:
Step 1: Verify the Legal Status of Your Business
The first step is to figure out the legal status of your business. The most common business structures are:
• Sole Proprietorship
• Limited Liability Company (LLC)
Step 2: Gather Necessary Documentation
You will need to gather certain documents before applying for an EIN number. This includes:
• A valid government-issued photo ID of the applicant, such as a driver’s license or passport
• The official business name and mailing address of the organization
• The type of business entity (corporation, LLC, etc.)
• The date of business establishment in California
• The Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) of the business owner
Step 3: Apply for an EIN Online or By Mail
You can apply for an EIN online through the IRS website or by submitting Form SS-4 to the IRS. If you decide to proceed with the online method, the process should only take approximately 20 minutes to complete.
However, if you would prefer to send the application by mail, you can send it to the appropriate processing center based on your mailing address. You can easily find the corresponding mailing address with the help of the chart provided by the IRS.
Step 4: Receive Your EIN
Once your application is received, you will generally receive your EIN in minutes if you applied online or within 3 to 5 weeks if you applied by mail. It is important to note that the process time can be much longer if the application is incomplete or incorrect.
Importance of an EIN in California
Having an EIN is essential if you are an employer in California, as it serves as your official identification number which you will need to file taxes with the IRS. Additionally, an EIN is required if you want to open a business bank account, obtain a business license, and apply for permits or financing.