The Top 5 Things to Consider When Registering for EIN in Los Angeles
Starting a Business in Los Angeles: Considerations, Beginning with an EIN3 min read
Beginning a business in Los Angeles — the city of angels — requires numerous considerations, starting with registering for an Employer Identification Number (EIN). It can be a complicated process, and it’s important to understand the ins and outs of registration. It’s equally important to seek counsel from a professional that understands local regulations as you move forward.
On the surface, EIN registration may seem like a straightforward task that one can complete on their own without too much guidance. It requires time, paperwork, and various forms to apply for an EIN, and a business must possess in-depth knowledge of federal laws to ensure everything is done by the book and up to code.
This article takes a closer look at the five most important things every business owner in Los Angeles must consider when registering for an EIN.
What Is An EIN?
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and it is used to identify a business for taxation purposes. It is similar to a Social Security Number but used for businesses and organizations. It is also a necessary step when establishing a business entity, tax reporting for business taxes, opening a business bank account, and applying for certain kinds of business licenses.
Important Consideration #1: Know Why You Need An EIN
Before you register for EIN, you must understand why you need it and for what purpose you are obtaining it. The Internal Revenue Service (IRS) states that an EIN is required for businesses that file taxes, including the following:
Single-member limited liability companies (LLCs)
Non-profit or charity organizations
Family child care providers
Trusts, estates, and corporations
Business partnerships and multi-member LLCs
Important Consideration #2: Know Where To Apply
Once you understand your need for obtaining an EIN, you must decide where you will apply. The IRS offers two EIN applications for businesses in Los Angeles: online and by mail.
Online application is an ideal way to apply because it is free, quick and you can receive your EIN immediately — the process typically takes only a few minutes. The online application allows you to enter your information into the IRS website, and the review process is immediate.
You can also apply through mail. You must fill out Form SS-4 and mail it to the IRS. The process can take up to three weeks, and the application must include supporting documents, such as financial statements, and proof of ownership.
Important Consideration #3: Know Where To Find Legal Assistance
You may need a one-time consultation or an entire freelance legal department to help you navigate the EIN registration process. It's essential to understand the regulations, and a qualified legal professional can assist you with the paperwork and proper filing.
For those looking for legal counsel in Los Angeles, UpCounsel has built an extensive attorney network to provide high-quality legal services that have helped numerous businesses from the Fortune 1000 to small businesses. Attorneys in UpCounsel's network bring an average of 14 years of experience and their profiles display ratings and reviews of recent work. So, you can trust UpCounsel lawyers to do a great job.
Important Consideration #4: Know How To Obtain The Form
Once you know where to apply, it’s time to get the form. You can get the form directly from the IRS privacy website or request it from a licensed professional. If you find a qualified professional, they can assist you in getting an EIN and help you complete the correct forms. Additionally, they can help you modify existing forms or help you craft a financial statement.
Important Consideration #5: Know How To Maintain Records
Once you have registered your EIN, you must maintain records of your federal taxes. This includes filing the required forms, filing accurate payments, and making timely deposits. It's important to review these documents regularly to remain in compliance with laws, gain insight into client relationships, and better understand the financial stability of the business.
When beginning a business in Los Angeles, registering for an EIN is an integral part of the process. From knowing the reasons for obtaining an EIN to understanding the role of legal professionals, the EIN registration process has many variables. It's important to pay attention to the top five things to consider when registering for an EIN in Los Angeles: know why you need it, know where to apply, know where to find legal help, know how to obtain the form, and know how to maintain records. With the help of the UpCounsel attorney network, you can navigate the PIN registration process and guarantee you set your business up for success.