Introduction
If you’re starting a business in California, one of the first steps is to obtain a Tax ID Number, also known as an Employer Identification Number (EIN). This unique number is issued by the IRS and is essential for hiring employees, opening a business bank account, filing taxes, and more. So, how do you get a tax ID number in California? Let’s break it down.
What Is a Tax ID Number?
A Tax ID Number (TIN), in the context of a business, refers to the EIN. It’s a 9-digit number assigned by the IRS to identify your business for federal tax purposes.
In California, you may also need a State Employer Payroll Tax Account Number from the Employment Development Department (EDD) if you plan to hire employees.
How to Get a Federal EIN in California
Here’s how to get your EIN (Tax ID) from the IRS:
1. Apply Online via IRS Website
- Go to the IRS EIN Assistant
- The application is free and takes about 10 minutes.
- Available Monday to Friday, 7 a.m. to 10 p.m. Eastern Time.
2. Apply by Mail or Fax
- Fill out Form SS-4
- Mail or fax it to the IRS
- Processing by mail takes 4–6 weeks; fax usually takes 4–5 business days
3. Apply by Phone (International Applicants Only)
- Call the IRS at 267-941-1099 (for international applicants without a U.S. Social Security Number)
Getting a California State Tax ID (If Hiring Employees)
If you hire employees in California, you’ll also need a California Employer Payroll Tax Account Number:
- Register online at EDD’s e-Services for Business
- Required for state income tax withholding, unemployment insurance, and more
Who Needs a Tax ID in California?
- Corporations, LLCs, and partnerships
- Sole proprietors with employees or a Keogh plan
- Businesses required to file excise taxes
- Nonprofit organizations
Final Thoughts
How do you get a tax ID number in California? Apply online via the IRS for your EIN, and register with the EDD if you have employees. It’s fast, free, and essential for running a legitimate business.
