The Los Angeles Tax Registration Certificate is a necessary document for any vendor doing business for seven or more days during a calendar year. However, before any entrepreneur can obtain this certificate, they must complete the following steps.
Choose a Business Structure
Choosing the entity of your business is an important step before getting your tax certificate. Your business entity determines the amount of taxes you must pay, and it will also affect your ability to easily acquire loans. What is a business entity? They exist in four main types.
The sole proprietorship is owned by a single person or couple who are married, and it represents the simplest business entity. A general partnership has two or more owners, all actively involved in the company’s management.
The limited partnership consists of both active or general partners and limited partners who assume only one role: that of investors. The corporation is a company or group of people, such as shareholders and officers, who are authorized to act as a single entity, considered legally a person.
If your business is a partnership or corporation, you’ll need to incorporate your company with the state of California before you can obtain your tax registration certificate.
Know Where You’ll Be Located
Before you can obtain a tax registration certificate, you need to have a business address. Although this isn’t mandatory, having to go back and update your business address on your certificate will cost money to complete.
Get a Seller’s Permit
Registering with the State Board of Equalization to obtain a Los Angeles Country seller’s permit will be the next step, but only if you plan to sell taxable goods. This has to be done before applying for a tax registration certificate, as the seller’s permit number is required for registration.
Be Sure You Have a Name
Having a name for your business doesn’t just help it to stand out from the crowd. It’s a good idea to check if a business name is taken so that you can avoid having to go through the process of paying for and submitting a second application.
Get Your Employer ID Number
EINs, or employer identification numbers are distributed by the IRS and required to register for a Los Angeles BTRC. However, the EIN is only necessary if your business has employees; sole proprietorships with no employees can use their SSN to apply.
On the other hand, the EIN can be used to avoid identity theft and, because of this, is recommended for all business structures.
The Fastest Way to Get a Seller’s Permit
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