You need to get an EIN if you have employees, operate your business as a corporation, limited liability company, or partnership, withhold taxes when paying a nonresident alien, or if you have a (tax-deferred pension plan). Also, certain trusts, estates, farmer cooperatives, plan administrators, nonprofit organizations, and other types of organizations are required to have an EIN.
At Nakase law firm they provide each and every knowledge about how to get an EIN number in California. A California Federal Tax ID Number may also be referred to as an Employer Identification Number (EIN) or a Federal Tax Identification Number. An EIN is a unique, nine-digit number that the IRS assigns to a business for tax reasons.
Does your business need a federal tax ID number?
Any business offering products or services that are taxed in any way must obtain a federal tax identification number. If your state levies personal services taxes or if you must collect taxes on your sales, you need an EIN. Any government forms you will need to complete for your business will require your EIN or Social Security number.
The Employer Identification Number form found on the IRS website must be completed in one go because the session times out after 15 minutes of inactivity for security reasons. So make sure you have all the necessary information about your business before you start. You must provide information about the legal structure of your business, why you are applying for an EIN, responsible party, address, etc.
Having the EIN to start operating in the California is simple. To do this, you must start the process of opening a company and follow a few steps. In addition, you will need to choose a state to register the company and the name you intend to use for your brand in the United States.
As an initial step in this Business Formation process, registration in the state is carried out, so it is important that you decide in which state to register the company. If you want to know which the 4 most popular states among entrepreneurs are, visit this blog post.
The next step is to obtain the EIN, which is provided by the IRS. For this, it is necessary to fill in the SS4 form; The Company Combo team will take care of managing the form, so the client will only have to sign the document (a process that is carried out completely online with the use of your digital signature).
This form defines the nature of the company, its address and its name. Once complete, the SS4 is sent to the IRS, who take approximately 15 days to validate the information and process the EIN application. Once everything is ready, the next step is to open a business bank account so that you can officially start operating on American soil.
Why should the LLC obtain the EIN?
You can enjoy various benefits once you get your EIN number. It will give your LLC Company the last trump card to function in full mode without having to face any legal or judicial problem. Here are the additional details of having the EIN after LLC formation.
Help file tax returns.
First of all, with the EIN number, you will be able to easily file tax returns with the IRS. In fact, all business finances done by your LLC will be tracked with just the EIN and thus this will allow you to file taxes correctly without fail.
Needed to hire employees
In order to hire employees, all employers will need individual EIN numbers so that their payrolls can be set up each month. As for the business EIN, the IRS will need this number to track employee payroll taxes.
Maintains the corporate veil
With the EIN number, LLC members will be able to protect their personal assets in case the company has been sued or someone has filed a lawsuit. This is what a corporate veil means, which is essential for all LLC businesses.
Prevent any occasion of identity theft
To operate all the taxes and finances of your LLC, you will use the EIN. This way, your social security number can be kept safe from identity theft.
Help open a business bank account.
Since after forming the LLC, you will need to open business accounts, you will need the EIN number for the same. Also, to obtain business credits and business licenses, you will need this unique nine-digit ID.