By Jake Lawson, LLC Formation Expert
Just formed your California LLC? Congratulations—you’ve taken the first step toward building a real business in the Golden State. But here’s what happens next: you need an EIN (Employer Identification Number) from the IRS, and you need to get it right the first time.
After helping hundreds of California entrepreneurs navigate the EIN process, I can tell you this: it’s simpler than the scam services make it seem, but there are specific pitfalls that catch new business owners off guard. Let me walk you through everything you need to know.
What Is an EIN and Why Your California LLC Needs One
Simple answer: An EIN is your LLC’s Social Security Number for tax purposes. It’s a 9-digit number (formatted XX-XXXXXXX) that identifies your business to the IRS and other government agencies.
Don’t be fooled by the name “Employer” Identification Number. You don’t need employees to get an EIN. Every legitimate business should have one.
Your California LLC Needs an EIN to:
- Open business bank accounts (absolutely required)
- File federal and state tax returns
- Apply for business credit cards
- Get business loans or lines of credit
- Obtain business licenses and permits
- Set up payroll if you hire employees
- Separate business finances from personal finances
Jake’s reality check: I’ve seen entrepreneurs try to operate without an EIN using only their Social Security Number. Don’t do this. It complicates taxes, limits banking options, and creates identity theft risks.
California EIN vs California Tax ID: Know the Difference
This trips up a lot of new business owners:
Federal EIN: Issued by the IRS for federal tax purposes (what we’re discussing here) California Tax ID: Issued by California Department of Tax and Fee Administration for state taxes
You need both if you’re conducting business in California. They serve different purposes and come from different agencies.
The Best Part: EINs Are Always Free
Bottom line: The IRS never charges for EINs. Ever. It’s a free government service.
Scam warning: Ignore any website charging $50-$500 for “EIN services” or “expedited processing.” These are middlemen selling you something the IRS provides free. I’ve seen entrepreneurs pay $300 for something that takes 10 minutes and costs nothing.
When to Apply for Your California LLC EIN
Critical timing rule: Wait until your California LLC is approved before applying for an EIN.
Here’s why timing matters:
- The IRS requires your official LLC name exactly as approved by California
- Applying too early creates complications if your LLC name gets rejected
- Mismatched names trigger IRS reviews and potential delays
My recommended timeline:
- File your California Articles of Organization
- Wait for approval from California Secretary of State (usually 5-10 business days)
- Apply for your EIN using the exact approved LLC name
What if you already applied too early? Don’t panic. If your LLC gets approved with the same name you used on your EIN application, you’re fine. If the name changed, you’ll need a new EIN.
Step-by-Step EIN Application Process
For US Citizens and Residents (SSN or ITIN holders):
Apply online at IRS.gov—it’s the fastest method.
Before You Start, Gather:
- Your California LLC approval documents
- Your Social Security Number or ITIN
- LLC formation date
- Principal business address
- Responsible party information (usually you)
The Online Application Takes About 15 Minutes:
Step 1: Go to IRS.gov and search “Apply for EIN Online” Step 2: Select “Limited Liability Company” as your entity type Step 3: Enter your LLC information exactly as shown on California documents Step 4: Provide your personal information as the “responsible party” Step 5: Answer questions about your business activities Step 6: Review and submit
Instant results: You’ll get your EIN immediately and can download your EIN Confirmation Letter (CP 575).
For Non-US Residents (No SSN or ITIN):
You must apply by mail or fax using Form SS-4.
What You Need:
- Completed Form SS-4
- Copy of your California LLC approval documents
- Copy of your passport or government ID
- Mailing address for correspondence
Processing Time:
- Mail: 4-6 weeks
- Fax: 4-5 business days to (855) 641-6935
Jake’s tip for international entrepreneurs: Consider getting an ITIN first, which allows online EIN applications. It adds a step but speeds up the overall process.
Common California LLC EIN Mistakes
Mistake 1: Wrong Entity Type Selection
The problem: Selecting “Corporation” instead of “Limited Liability Company” The consequence: IRS processing delays and potential tax complications The solution: Always select “Limited Liability Company” for LLCs
Mistake 2: Inconsistent Business Names
The problem: Using a DBA name instead of your official LLC name The consequence: EIN gets tied to wrong entity name The solution: Use exactly the name on your California LLC documents
Mistake 3: Applying Before LLC Approval
The problem: Getting EIN before California approves your LLC The consequence: Potential name mismatches and complications The solution: Wait for California approval, then apply for EIN
Mistake 4: Wrong Responsible Party Information
The problem: Listing someone who can’t legally bind the LLC The consequence: IRS compliance issues down the road The solution: List an LLC member or manager with authority
Single-Member vs Multi-Member California LLCs
Single-Member LLCs:
Tax treatment: Disregarded entity (taxed like sole proprietorship) EIN requirement: Technically optional, but strongly recommended Benefits of getting EIN: Banking access, identity protection, business credit
Multi-Member LLCs:
Tax treatment: Partnership taxation (unless you elect otherwise) EIN requirement: Absolutely required by IRS Tax filing: Must file Form 1065 partnership return
Married Couples in California:
Special rule: California is a community property state, so married couples have unique options:
- Option 1: Multi-member LLC taxed as partnership
- Option 2: Qualified Joint Venture (taxed like single-member LLC)
How you complete your EIN application determines which tax treatment you get.
Your EIN Confirmation Letter: Don’t Lose It
After approval, you’ll receive an EIN Confirmation Letter (CP 575). This document is crucial for:
- Opening business bank accounts
- Applying for business credit
- Tax filings
- Business license applications
What if you lose it? You can’t get another CP 575, but you can request an EIN Verification Letter (147C) that serves the same purpose.
Opening Your California LLC Bank Account
Next step after getting your EIN: Open a dedicated business bank account.
What banks require:
- EIN Confirmation Letter
- California LLC Articles of Organization
- Operating Agreement (some banks)
- Personal identification
- Initial deposit
California banking recommendations:
National banks: Chase, Bank of America, Wells Fargo (wide branch networks) Regional banks: First Republic, Silicon Valley Bank (better business focus) Credit unions: Often better fees and service for small businesses
Jake’s tip: Call ahead to confirm document requirements. Some banks have specific forms or additional requirements for LLCs.
California-Specific EIN Considerations
California Franchise Tax:
Your EIN doesn’t affect California’s $800 annual franchise tax, but you’ll need it for filing tax returns.
Multiple California Businesses:
Each LLC needs its own EIN. Don’t try to use one EIN for multiple entities.
Foreign LLCs in California:
If your LLC is formed in another state but doing business in California, you still need an EIN for federal purposes.
Professional LLCs:
California PLLCs follow the same EIN process as regular LLCs.
Troubleshooting EIN Issues
“We Cannot Complete Your Application Online”
This error usually means:
- You need to apply by phone or mail
- There’s an issue with your SSN/ITIN
- The IRS needs additional documentation
Solution: Call the IRS Business & Specialty Tax Line at (800) 829-4933
Name Availability Errors
If the IRS says your LLC name is already taken:
- Double-check your California LLC documents
- Ensure you’re using the exact approved name
- Contact the IRS if you believe there’s an error
Lost or Incorrect EIN
For lost EINs: Request an EIN Verification Letter For incorrect information: File Form 8822-B to change business address, or contact IRS for name changes
Professional Help vs DIY
DIY Makes Sense When:
- You have SSN or ITIN
- Your LLC structure is straightforward
- You’re comfortable with online applications
- You want to save on service fees
Consider Professional Help When:
- You’re a non-US resident without ITIN
- You have complex ownership structures
- You’ve made mistakes and need corrections
- You value time over cost savings
Professional service cost: $150-$400 for EIN assistance (still completely unnecessary for most people)
Post-EIN Action Items
Immediate Next Steps:
- Save your EIN Confirmation Letter in multiple formats (digital and physical)
- Update your records with the new EIN
- Open business bank account using EIN documentation
- Apply for California business licenses if required
- Get business credit cards to build business credit
Ongoing EIN Management:
- Keep EIN documentation safe (you can’t get duplicates)
- Use EIN consistently on all business documents
- Never share EIN unnecessarily (identity theft protection)
- Include EIN on tax returns and business correspondence
California LLC Tax Implications
Federal Tax Responsibilities:
Single-member LLCs: File Schedule C with personal 1040 Multi-member LLCs: File Form 1065 partnership return Corporate elections: File appropriate corporate returns if elected
California State Tax Requirements:
- Annual franchise tax: $800 minimum (due by 15th day of 4th month)
- LLC tax: Additional tax based on gross receipts
- Sales tax: Register with CDTFA if selling taxable goods/services
Your EIN connects all these tax obligations together.
The Jake Lawson Bottom Line
Getting an EIN for your California LLC is straightforward, free, and essential for legitimate business operations. Don’t let scam services convince you otherwise, and don’t try to operate without one.
My recommended approach:
- Wait for California LLC approval before applying
- Apply online directly through IRS.gov if you have SSN/ITIN
- Use your exact LLC name from California documents
- Save your confirmation letter immediately
- Open business banking as soon as possible after receiving EIN
Key insight: Your EIN is the foundation of your business’s financial identity. Get it right from the start, and keep the documentation secure.
Reality check: This is one of the simplest business compliance tasks you’ll face. Don’t overthink it, don’t pay for it, and don’t delay getting it done.
Ready to get your California LLC EIN? Go directly to IRS.gov and search “Apply for EIN Online.” Ignore all the paid services trying to charge you for something that’s free.
Need more California LLC guidance? Check out our complete California LLC formation guide or explore our California business tax overview to understand your ongoing obligations.
Questions about California LLC EINs? Ask in the comments below—I personally respond to every legitimate question.