How do I apply for a federal Employer Identification Number (EIN) for my new California business?

You can apply for a federal Employer Identification Number (EIN) for free directly from the IRS, most easily through their online application. Here is a step-by-step guide to the process. Step 1: Determine Your Eligibility and Need You must have a valid Taxpayer Identification Number (Social Security Number, ITIN, or an existing EIN) to apply. You need an EIN if you plan to hire employees, operate your business as a corporation or partnership, or file certain federal tax returns. Step 2: Gather Required Information Before you begin, collect the following information: the legal name of the business entity, the business mailing address and physical location, the type of entity (e.g., sole proprietorship, LLC, corporation), the primary industry of your business, and the full legal name and Social Security Number (or ITIN) of the main responsible party. The responsible party is the individual who ultimately owns or controls the entity. Step 3: Apply Online Go to the official IRS website to access the online EIN application. The online tool is available Monday through Friday, 7 a.m. to 10 p.m. Eastern Time. Complete the application by answering all questions. This is the fastest and preferred method. Step 4: Receive and Secure Your EIN Once you complete the online application, your EIN will be issued immediately. Be sure to download, save, and print the confirmation notice for your records. You can begin using this number right away for business activities like opening a bank account or applying for state tax accounts. Important details and nuances: The IRS does not charge a fee to apply for an EIN. Be wary of third-party websites that look official but charge for this service. Once you have your federal EIN, you will use it to register with California state agencies, such as the Employment Development Department (EDD) if you have employees, as required by the California Unemployment Insurance Code. Warnings and limitations: The online application must be completed in one session; you cannot save it and return later. The IRS limits applications to one EIN per responsible party per day. Changing your business structure, such as converting from a sole proprietorship to a corporation, will require you to obtain a new EIN. This is general information and does not constitute legal advice. For complex situations, such as determining your business structure or understanding specific tax obligations, you should consult with a qualified California attorney.