When You DO Need an EIN in California
You must obtain an EIN if your California business meets any of the following conditions:
1. You Hire Employees
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Any business with employees must have an EIN
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Required for payroll taxes, federal employment taxes, and EDD registration
2. You Form an LLC or Corporation
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LLCs (multi-member or single-member electing corporate taxation)
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Corporations (C-Corp or S-Corp)
EINs are required even if you have no employees
3. You Operate as a Partnership
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All partnerships must have an EIN
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Includes general and limited partnerships
4. You File Certain Federal Taxes
You need an EIN if you file:
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Employment taxes
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Excise taxes
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Alcohol, tobacco, or firearms taxes
5. You Open a Business Bank Account
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Most California banks require an EIN for business accounts
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Especially common for LLCs and corporations
When You DO NOT Need an EIN
You may not need an EIN if:
You Are a Sole Proprietor
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No employees
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No excise or employment taxes
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You can use your Social Security Number (SSN) instead
You Have a Single-Member LLC (in limited cases)
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No employees
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No federal excise taxes
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IRS allows SSN use, but many owners still choose an EIN for privacy
Should You Get an EIN Anyway?
Even if it’s not required, many California business owners choose to get an EIN because it:
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Protects your SSN from overuse
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Makes banking and financing easier
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Simplifies hiring later
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Looks more professional to vendors and clients
Good news: EINs are issued instantly by the https://www.einregister.online/
EIN vs California State Numbers (Important)
An EIN is federal and different from California registrations such as:
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California Secretary of State entity number
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California EDD employer account number
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California sales tax permit (CDTFA)
Most businesses need more than one of these.
Quick EIN Requirement Checklist
| Business Type | EIN Required? |
|---|---|
| Sole Proprietor (no employees) | Not required |
| Sole Proprietor (with employees) | Yes |
| Single-Member LLC | Sometimes |
| Multi-Member LLC | Yes |
| Corporation (C or S) | Yes |
| Partnership | Yes |
| Nonprofit | Yes |
Final Answer
You need an EIN to start a business in California if you form an LLC, corporation, partnership, hire employees, or file certain taxes.
Sole proprietors without employees may use an SSN, but getting an EIN is still strongly recommended.