starting a new business venture in California, you will need to get a California tax IDnumber. The reason why you need a tax id number is to provide it to the Internal Revenue Services (IRS) for record keeping of how much you business made or lost. It’s like a social security number for your business.A California tax Id number is that it also opens doors to wholesalers and drop shippers. If you have a sellers permit or tax id number, many times you can buy products without paying taxes initially, at wholesale prices.
You can apply for your offical government tax identification number in multiple ways either by online or mail the forms in. You can also do it in person if you live by a local IRS office or don’t mind speaking with the IRS.. If time is a factor, and you want to get you business up and going you can easily apply for you business tax id by clicking this link and feeling out our simple EIN application form and getting your Tax id in less than 24 hours.
the second step is you can go to the IRS website and print out the ss-4 formto apply for your tax id by mail, which will arrive to you within 7-14 business days or fill out there online form.
After you recieve you Tax id number for the state of California you can now offically conduct business under you business name and open up a new business checking account at you local banking institution and start seperating you personal finances from your business.
When doing Business in California or any state in the United States it is important to have proper records of you business income and losses to submit to the IRS every tax year to avoid amy penalties or any risk of audits.