How to Get a California Tax ID Number for Your Business

Getting a California tax ID number for a business usually means getting more than one number, from more than one agency. Most new businesses need a federal Employer Identification Number (EIN) from the IRS, a Seller’s Permit from the California Department of Tax and Fee Administration (CDTFA) if they sell goods, and a State Employer Account Number (SEIN) from the Employment Development Department (EDD) if they have employees. Corporations, LLCs, and limited partnerships also receive a Secretary of State entity number automatically when they form. Which of these you need depends on what you sell and whether you hire.

Which California Tax IDs Your Business Needs

Two questions decide most of this: will you sell physical goods in California, and will you pay wages to employees?

  • A Seller’s Permit from the CDTFA is required if you sell or lease tangible personal property in California. It covers retail and wholesale sellers, and it applies whether you operate from a storefront, through a sales rep working in the state, or by leasing goods here.
  • A State Employer Account Number from the EDD is required once you pay more than $100 in wages in any calendar quarter. You have 15 days after crossing that threshold to register.1Employment Development Department. Am I Required to Register as an Employer
  • A Secretary of State entity number is assigned automatically when you form a corporation, LLC, or limited partnership with the California Secretary of State. The Franchise Tax Board uses the same number to track state income and franchise tax obligations, so there is no separate FTB application.

The Seller’s Permit lets you collect sales tax from customers and buy inventory tax-free using a resale certificate. The SEIN is how you report and pay state payroll taxes, including unemployment insurance, state disability insurance, and personal income tax withholding. The Secretary of State entity number ties an LLC or corporation to California’s $800 annual franchise tax, which applies every year the entity is registered, even in years with no revenue.2Franchise Tax Board. Limited Liability Company

Start With the Federal EIN

Both the CDTFA and EDD applications ask for a federal EIN, so get that number before anything else. An EIN is a nine-digit number the IRS assigns for tax filing and reporting. Partnerships, corporations, and multi-member LLCs need one regardless of whether they have employees. Sole proprietors without employees can sometimes use their Social Security number instead.3Internal Revenue Service. Instructions for Form SS-4

If you are forming an LLC or corporation, file your formation documents with the California Secretary of State first, then apply for the EIN. The IRS specifically warns that applying in the wrong order can delay your application.4Internal Revenue Service. Get an Employer Identification Number

The application is free on the IRS website. A couple of quirks catch people out. The online session times out after 15 minutes of inactivity and cannot be saved, so have your information ready before you begin. You are also limited to one EIN application per responsible party per day, and the responsible party (the person who controls or manages the entity) must have a valid SSN or ITIN.4Internal Revenue Service. Get an Employer Identification Number

You receive the EIN immediately when you complete the application. Print the confirmation letter right away. If the responsible party later changes, notify the IRS on Form 8822-B within 60 days.3Internal Revenue Service. Instructions for Form SS-4 One warning: the IRS never charges for an EIN. Any site asking you to pay is a third-party service.4Internal Revenue Service. Get an Employer Identification Number

Applying for a California Seller’s Permit

You need a Seller’s Permit if you are engaged in business in California and plan to sell or lease tangible personal property subject to sales tax. The rule applies to individuals, corporations, partnerships, and LLCs, and it covers wholesale as well as retail.5California Department of Tax and Fee Administration. Obtaining a Seller’s Permit For a short run of sales, such as a holiday pop-up or a rummage sale lasting 90 days or less, apply for a temporary seller’s permit instead.

What to Gather Before You Apply

The CDTFA’s online registration walks you through the process and identifies which permits fit your business. Have this ready:

  • A valid photo ID plus your SSN or ITIN.
  • Your federal EIN and, for corporations, LLCs, and partnerships, your California Secretary of State entity number.
  • Estimated monthly sales and the portion you expect to be taxable.
  • A description of what you will sell.
  • Names and addresses of your main suppliers.
  • Names, dates of birth, SSNs or driver’s license numbers, and addresses for all owners, partners, corporate officers, or LLC members.

The application also asks for personal references and the contact information of whoever keeps your books.6California Department of Tax and Fee Administration. Online Services – Registration

Submitting and Receiving the Permit

Apply through the CDTFA’s Online Services portal. You can save your progress and return within 30 days before a partial application is deleted.6California Department of Tax and Fee Administration. Online Services – Registration In-person registration at a CDTFA field office is also available.

The permit itself is free, but the CDTFA may require a security deposit based on your business type and projected taxable sales. The deposit covers potential unpaid sales and use tax. Many applicants receive their permit right after submitting the online application,7CA.gov. Apply for a Seller’s Permit though applications that trigger a security deposit or need further review take longer.

Once approved, you receive a physical permit certificate. California law requires you to display it conspicuously at your place of business, and you need a separate permit for each location.8California Legislative Information. California Revenue and Taxation Code 6067 The permit is non-transferable; it is valid only for the person or entity named on it and the specific location listed.

Registering for a State Employer Account Number

If you pay more than $100 in wages to one or more employees in a calendar quarter, you must register with the EDD for a State Employer Account Number within 15 days of crossing that threshold.1Employment Development Department. Am I Required to Register as an Employer The $100 is per quarter, not per employee, so even a single part-time hire can trip it quickly.

Information You Will Need

Before starting the EDD registration, gather:

  • Your federal EIN and legal business name as registered with the California Secretary of State.
  • Physical business address and mailing address.
  • An industry description identifying the crop, product, or activity that represents the largest share of your revenue.
  • The date of the first payroll on which wages exceeded $100.
  • Names, Social Security numbers, and other identifying information for all responsible parties, including individual owners, partners, corporate officers, and LLC members.9Employment Development Department. Employers Payroll Tax Account Registration

How to Register

The EDD’s e-Services for Business portal is the primary way to register. It is available around the clock, and you will create a username and password to manage the account going forward.9Employment Development Department. Employers Payroll Tax Account Registration After processing, the EDD sends a formal notice with your SEIN. Use it for all future payroll tax reporting and payments.

The Secretary of State Entity Number

You do not apply separately for this one. When you file formation documents for a corporation, LLC, or limited partnership, the Secretary of State assigns an entity number as part of registration. The Franchise Tax Board uses the same number for state income and franchise tax purposes, so there is no separate FTB tax ID to request. Sole proprietors and general partnerships that have not registered an entity do not have a Secretary of State number.

Mistakes That Slow the Process Down

A few errors come up more often than they should. Applying for an EIN before registering your LLC or corporation with the Secretary of State is the most common; handle formation first. Underestimating projected sales on the Seller’s Permit application can backfire, because if the CDTFA later determines your actual sales significantly exceed what you reported, expect scrutiny and a possible security deposit adjustment.

On the EDD side, the biggest issue is simply not registering in time. Fifteen days goes fast when you are focused on running a new business, and because the $100 threshold is per quarter rather than per employee, even a small payroll triggers the requirement almost immediately. If you know you will hire, register with the EDD before your first payroll rather than waiting to see whether you hit the threshold.