Once you have the EIN, you will also need to get a California tax numbers in order to pay for a variety of state business taxes.
Business tax numbers in California are often confused with the Employer Identification Number. The EIN is a separate number that is used to federally register a business with the Internal Revenue Service (IRS) and may be needed in addition to state tax numbers.
The most common reasons a California business will need to register for a state business tax numbers include:
- Sales Tax – Businesses selling products and certain services are required to collect sales taxes and will need to register with the California Department of Tax & Fee Administration. Often paid Quarterly.
- Employees Taxes – Businesses with employees will need to register with the California Employment Development Department to get a Withholding Tax Number and Unemployment Number to pay for payroll taxes. Often paid Monthly.