Do I need an EIN for a DBA in California?

Sole proprietorships operating under a Doing Business As (DBA) name typically do not require an Employer Identification Number (EIN) unless they have hired employees. The EIN serves as a unique identifier for businesses when dealing with tax and financial matters.

For single-member Limited Liability Companies (LLCs) with a DBA, the necessity of an EIN depends on their tax status and employment status. If the LLC chooses to be taxed as a corporation or if it employs workers, it will be required to obtain an EIN.

Multi-member LLCs, regardless of whether they operate under a DBA or not, are mandated to have an EIN. This is because, as separate legal entities, they engage in financial transactions that necessitate the use of a unique identifier for tax purposes.

Partnerships, like multi-member LLCs, are also required to have an EIN. They are considered separate taxable entities and their financial transactions, including income and expenses, must be reported using the EIN.

Corporations, whether they operate under a DBA or not, must have an EIN. It is an essential component of their corporate structure, enabling them to conduct business and comply with tax regulations effectively.