How to Register for an EIN Number in Los Angeles
Every business owner in the United States needs to have an Employer Identification Number (EIN) to process payroll and operate their business3 min read
Every business owner in the United States needs to have an Employer Identification Number (EIN) to process payroll and operate their business. Companies need to register EIN numbers with the Internal Revenue Service (IRS). And understanding the process, especially if you’re based in Los Angeles, doesn’t have to be an intimidating ordeal. We’ve outlined the process of registering an EIN number in the Los Angeles area below.
What is an EIN?
An EIN is a nine-digit number used by the IRS to identify organizations. EINs are similar to Social Security numbers (SSNs) for individuals — only businesses and organizations use EINs. They are issued for the purpose of tax administration, making it easier to locate and identify each taxpayer.
Businesses in Los Angeles must register for an EIN when:
The organization is formed,
A business owner needs to pay taxes,
The business plans to hire employees,
The business is operating as a corporation or partnership, or
The business needs to open a bank account.
Who Needs to Obtain an EIN?
Any business in the Los Angeles metropolitan area that is organized as one of the following must obtain an EIN:
Corporation
Partnership
Limited liability company (LLC)
Trust
Sole proprietorship
Nonprofit
Estate
EINs are not required for individuals, but may be necessary if they are employed and need to pay taxes.
How to Obtain an EIN Number in Los Angeles
Los Angeles businesses can get started with the process of obtaining an EIN by visiting the IRS website. Businesses that are located in California can use the IRS' EIN site. After completing the "Apply for an Employer Identification Number (EIN) Online" page, another page will appear and businesses can select the type of entity they are: Sole Proprietor/Individual, Corporation, LLC, Partnership, or Other.
After selecting an entity type, businesses will need to answer several questions to complete the EIN application. Businesses will be asked to provide the following information:
Legal name of the business entity,
Date the business began,
Type of organization,
Address of the business entity,
Principal of the business, and
Name of the responsible party.
Once businesses have provided the information, the IRS will generate an EIN and a statement from the IRS Office of Taxpayer Identification confirming the issuance of the number. This confirmation will be emailed to the business within minutes, and the EIN will be printed on a permanent letter. This letter will be used to open a business bank account as well.
What if my Los Angeles Business Experiences a Change in Entity Type?
Businesses in Los Angeles may need to update their EIN if the business’s entity type changes. For example, if a sole proprietorship decides to become an LLC, it will need to apply for a new EIN.
Businesses should update their EIN by filing IRS Form 8822-B. This form is used to update the name, address, structure, or responsible party of the business. The IRS will then issue a new EIN.
Can an Attorney Help Register an EIN Number in Los Angeles?
If you need help registering an EIN for a business in Los Angeles, it may be a good idea to consult an experienced business lawyer. An attorney can help make sure that the process of registering an EIN is done properly.
Contact business attorneys in Los Angeles to get help with the process of registering an EIN.
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