What is an EIN Number ?
An EIN Number stands for Employer Identification Number and it will be issued by the IRS to your California LLC. An EIN is to your California LLC what a social Security Number is to a person. It helps the IRS identify your business for tax and file purposes. Having an EIN for your California LLC allows you to open a separate bank account under the LLC ’ s name, apply for certain licenses and permits, and handle employee payroll ( if applicable ).
tied though it ’ randomness called an Employer Identification Number, it doesn ’ metric ton mean that you have to have employees. The EIN is just a type of Taxpayer Identification Number ( TIN ) that identifies your California LLC with the IRS. Special offer: If you hire Northwest to form your LLC ( $ 39 + state tip ), they ‘ll get your EIN Number for $ 50 .
Your California LLC ’ s EIN may be called different names. They all mean the lapp matter though. exchangeable terms for an EIN include :
- EIN Number
- Employer ID Number
- Employer Identification Number
- Federal Employer ID Number
- Federal Employer Identification Number
- Federal Tax Number
- Federal Tax ID Number
- Federal Tax Identification Number
Benefits of having an EIN for your California LLC
Having an EIN for your California LLC enables you to do the follow :
- Open an LLC business bank account
- File taxes at the federal, state, and local level
- Handle employee payroll (if applicable)
- Obtain business lines of credit or business loans
- Get a business credit card for your LLC
- Apply for business licenses
Wait for your California LLC to be approved
Wait for your California LLC to be approved by the Secretary of State before applying for your EIN. otherwise, if your LLC file is rejected, you ’ ll have an EIN attached to a non-existent LLC. however, if this does happen, you can constantly cancel your EIN and then apply for a fresh one. And you don ’ t have to wait for your cancellation to go through ahead applying for a raw EIN .
Applying for an EIN for your LLC is unblock ( $ 0 )
Applying for an EIN for your California LLC is completely free. The IRS doesn ’ deoxythymidine monophosphate commit anything for applying for an EIN .
Don ’ deoxythymidine monophosphate have an SSN or ITIN ?
If you ’ re a foreigner who formed a California LLC, you can placid get an EIN without having an SSN or ITIN. You just can ’ deoxythymidine monophosphate get your EIN on-line. alternatively, you need to mail or fax Form SS-4 to the IRS. We have instructions here : How to apply for EIN without an SSN or ITIN .
- Related article: How to apply for an ITIN
EIN Phone Application
You may have read that you can apply for an EIN by telephone. This is no long the shell. The IRS has discontinued this service. The only businesses that can get an EIN by telephone are exempt Organizations ( like non-profits ) and Foreign Companies ( companies formed outside of the United States ). If you ’ re a foreigner and you formed an LLC in California we have instructions below on how to apply for your EIN .
EIN for Husband and Wife LLC in California
Because California is a residential district property state of matter, a 2-member LLC that is owned by a conserve and wife can elect a special form of taxation called a “ Qualified Joint Venture LLC “. A Qualified Joint Venture with the IRS allows your husband and wife California LLC to file taxes as a Sole Proprietorship alternatively of a Partnership. This can save you time and money in accounting and tax costs. There may be extra benefits to obtaining Qualified Joint Venture status with the IRS and this is a conversation you ’ ll want to have with an accountant. Read our entire article hera : Qualified Joint Venture ( Husband and Wife LLC )
EIN Responsible Party
The EIN Responsible Party is a person that goes on file with the IRS when you apply for an EIN for your California LLC. think of the Responsible Party as the LLC ’ s “ contact person ”. The IRS will send your LLC ’ mho mail and correspondence to this person .
If you have a Single-Member California LLC :
then you will be the EIN Responsible Party .
If you have a Multi-Member California LLC:
One of the LLC Members will be the EIN Responsible Party. The IRS just wants one person as the EIN Responsible Party. They don ’ thyroxine want all the California LLC Members ’ information. The IRS gets the other Members ’ information when you file your 1065 Partnership rejoinder and issue K-1s each year. Although any LLC Member can be listed, you should list the LLC Member that will take on the province of making surely the LLC ’ south taxes are handled by rights .
If your California LLC is owned by another company:
The IRS made changes in 2018 that no long allow an EIN Responsible Party to be a company. The EIN Responsible Party must be an individual person. So it ’ mho best to list one of the individual owners of the rear company. Note: If you have a California LLC that is owned by another company and you try to get an EIN on-line, you ’ ll just get an error message ( EIN address number ) at the end of the application .
To learn more about who can be the EIN Responsible Party for your California LLC, please see EIN Responsible Party for LLC .
How is a California LLC taxed?
By default, a California LLC is taxed based on the number of Members ( owners ). Meaning, an LLC is fair taxed in the default status set by the IRS and the LLC doesn ’ thymine elect to be taxed as a Corporation ( either a C-Corporation or an S-Corporation ).
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- Related article: How are LLCs taxed?
The nonpayment tax status for a California Single-Member LLC is a Disregarded Entity, meaning if the LLC is owned by an individual, the LLC is taxed like a Sole Proprietorship. If the LLC is owned by a party, it is taxed as a branch/division of the parent company. The default option tax status for a California Multi-Member LLC is Partnership, meaning the IRS taxes the LLC like a Partnership. If alternatively, you want your California LLC taxed as a C-Corp, you ’ ll first apply for an EIN and then later file form 8832. If you want your LLC taxed as an S-Corp, you ’ ll first apply for an EIN and then belated file form 2553. If you choose to have your California LLC taxed as a corporation, make indisputable you speak with an accountant as there are a set of details you need to consider. Having an LLC taxed as an S-Corporation is a much more popular option than having an LLC taxed as a C-Corporation. S-Corporation taxation normally makes sense once an LLC generates about $ 70,000 in internet income per year .
How to apply for an EIN for your California LLC
Below you will find 3 different sets of instructions :
1. If you have an SSN or ITIN, use the EIN online application
We recommend applying for an EIN on-line for your California LLC if you have an SSN or ITIN. This is the easiest filing method acting and it has the fastest approval clock. We have instructions here:
How to apply for an EIN on-line
2. If you apply online, but you get an error message
If you have an SSN or ITIN, give for an EIN on-line, but you get an error message ( called an EIN character number ) at the conclusion, you will need to mail or fax Form SS-4 to the IRS rather. We have instructions here:
Apply for EIN for LLC with Form SS-4
3. If you don’t have an SSN or ITIN
If you don ’ t have an SSN or ITIN, you can silent get an EIN for your California LLC. You fair can ’ thymine put on for an EIN on-line. You will need to mail or fax Form SS-4 to the IRS rather and you must fill the form out in a certain direction. We have instructions here:
How to get an EIN without an SSN or ITIN
EIN Confirmation Letter (EIN Approval)
once the IRS issues an EIN for your California LLC you will receive your official approval, known as an EIN Confirmation Letter (CP 575). The method acting you used to apply for an EIN will determine how you receive your EIN Confirmation Letter. If you applied for an EIN online:
You ’ ll be able to download a PDF copy of your EIN Confirmation Letter at the end of the on-line application. There is no waiting time. The IRS will besides send you a duplicate copy in the mail in about 4 to 5 weeks. If you sent Form SS-4 by fax:
The IRS will fax you back your EIN Confirmation Letter within 4 to 7 business days. If you sent Form SS-4 by mail:
The IRS will mail your EIN Confirmation Letter within 4 to 8 weeks. Here is what the EIN Confirmation Letter for an LLC looks like:
How to Cancel an EIN?
If there was a mistake with your first EIN application or you need to cancel your EIN Number for any reason, you good need to mail a cancellation letter to the IRS. We have instructions here : how to cancel an EIN. You don ’ t have to wait for your EIN cancellation to be finalized before getting a newly EIN for your California LLC .
LLC Business Bank Account
After getting your EIN, you can then open a classify business trust score for your California LLC. Banks normally ask for the follow documents to open a California LLC business bank score :
- EIN Confirmation Letter
- LLC Approval (stamped and approved Articles of Organization)
- LLC Operating Agreement
- Driver’s License and/or Passport
away from the above, banks may besides require other paperwork ( like proof of address ), so we recommend calling a few banks in California ahead of prison term before visiting them in person. It ’ mho besides a well idea to ask if they have monthly fees on their “ basic ” commercial enterprise checking accounts since there are a phone number of banks that don ’ t have any monthly fees. If you ’ re a non-US nonmigratory ( foreigner ), you will need to show 2 forms of recognition, such as your alien pass and your alien driver ’ second license. There are extra things to keep in mind when opening a U.S. depository financial institution account for your California LLC that we have listed here : Non-US nonmigratory opening U.S. bank history for an LLC Note: You will need to open a bank account in California since that is where you formed your LLC .
IRS Contact Information
If you have any questions, you can call the IRS at 1-800-829-4933. Their function hours are 7am – 7pm, Monday through Friday. We recommend that you call the IRS early to avoid long holding times .
once the IRS has issued an EIN for your California LLC, you can then proceed to the following moral : California LLC Statement of Information.
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Matt holds a Bachelor’s Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC – all for free! Read more about Matt Horwitz has been the leading adept on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that early companies were n’t offering. He ‘s cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.Matt holds a Bachelor ‘s Degree in business from Drexel University with a concentration in clientele law. He performs extensive inquiry and analysis to convert state laws into childlike instructions anyone can follow to form their LLC – all for unblock ! Read more about Matt Horwitz and LLC University