How To Get A Tax ID Number In California

Did you know that 5.8 million new business applications were filed from 2021 to 2022 in California? If you want to open a business in California, you must have a good grasp of your legal responsibilities. Getting an EIN number California and a California State ID Number should be at the top of your checklist.

This article will explain what an EIN number is, why your organization needs one, and how to get a Tax ID Number in California.

What is a California Tax ID (EIN) & Who Needs It?

A California Tax ID, also known as a State ID Number California is issued by the California Employment Development Department (EDD). Most states issue their own state-level tax IDs.

On the other hand, an Employer Identification Number (EIN) is issued by the IRS to businesses in order to file their federal-level taxes. Businesses in California will have taxes to file in separate systems: one with the IRS and one with the state of California.

Who needs an EIN? An EIN is legally required of businesses that hire employees, sell taxable goods and services, or that need to pay excise taxes in California. The EIN also functions to identify the businesses. Banks will need to keep a record of an organization’s EIN before approving a bank loan. Having an EIN number is a must when applying for licenses and permits.

Now that we’ve covered what an EIN and a California Tax ID are, let’s find out how you can apply for an EIN.

Gather Required Information

When applying for an EIN Number California, you will be asked to fill in an application form. There is some basic information about your business that you need to prepare, such as

  • Name of the organization
  • Full address of the organization
  • Important dates, i.e. when the organization was started or acquired, and the closing month of the fiscal year
  • Responsible party information (this refers to the person who has full control over the entity) i.e. First and Last Name, Social Security Number, and Title
  • Description of business activities (Know what your day-to-day operations entail)

Once you have the information ready, you can apply online through our services or apply by mail.

Submit Your Application Online

This is our preferred way to apply for the EIN. The application form is easier to fill in since all you need is a device with an internet connection. Secondly, it’s also the fastest way to get your EIN which is almost immediately, following a successful application.

The FEIN online application is only open to U.S. citizens at the moment who have an SSN or ITIN. You can start by clicking the button that applies to the legal structure of your business.

Submit Your Application By Mail

Though we recommend applying for the Federal Tax ID online, in some cases, you will need to apply by mail.

If you are a Non-U.S. citizen but are legally required to get an EIN for your business in California, you may apply by mail. Print out the latest version of Form SS-4 and fill in the relevant fields.

You should then enclose it and mail it to the Internal Revenue Service. The processing time can take up to 5 weeks before you get your EIN.

Frequently Asked Questions

What is a California Tax ID (EIN) & Who Needs It?

A California Tax ID (EIN) is required of businesses operating in California. All business entities need it, except for single-member LLCs and sole proprietorships.

Does The California Secretary of State Issue EIN Numbers?

The California Secretary of State does not issue EIN numbers. The Internal Revenue Service issues EIN numbers.

Is An EIN Number The Same Thing As A California Tax ID Number?

An EIN number is not the same thing as a California Tax ID Number. They are used to file federal and state taxes in separate systems. An EIN is required before you can get a State ID Number for California.

You can obtain an EIN number by yourself, but you don’t have to. We can provide legal assistance and guidance throughout the process in addition to reviewing your application. Our dedicated team is ready to help.