Business Basics Resource Guide
Milt Wright & Associates
Business Taxes
Before you begin your business, you will need to obtain a business permit or license and show your intention to pay different kinds of taxes required by the government. This section summarizes the basic permit and tax certificates required for most business activities in the City of Los Angeles.
Federal
Tax
If you employ workers, you will need an Employer
Identification Number (EIN) to withhold federal income
taxes from your employees' paychecks. Application for
an EIN can be made either by phone or by mail. To apply
by phone, you will need to fill out the IRS Form SS-4
before you call the IRS. As an employer, you are liable
for federal withholding taxes, FICA & FUTA (employer's
matching for Social Security and Unemployment Tax) taxes.
For current information on tax rates, contact the Los
Angeles branch office of the IRS:
Internal Revenue Service
300 N. Los Angeles St.
Los Angeles, CA 90012
(213) 629-1040 or (800) TAX-1040
www.irs.gov/businesses/small/article/0,,id=100688,00.html
State Tax
1.
State Board of Equalization
To pay the state-required business taxes, you will need
to contact the State Board of Equalization office for
tax assessment and pay a deposit before you start operating
your business. You will first be interviewed by the
Board of Equalization to determine an estimated amount
of the taxes your business will generate. You will then
be required to deposit the estimated amount determined
during the interview.
For
further information, contact the Los Angeles branch
of the State Board of Equalization listed below.
The State Board of Equalization
5110 W. Sunset Blvd
Los Angeles, CA 90027
(213) 913-7800
2.
Employment Development Department
Employment Development Department (EDD)is responsible
for assisting California employers in meeting their
labor needs, and is responsible for collecting employment
related taxes, including unemployment insurance, disability
insurance, and personal income tax withholding. For
further information, contact:
Employment Development Department
3321 Power Inn Road, Suite 2002
Sacramento, CA 95826
3.
The Franchise Tax Board
The Franchise Tax Board administers the franchise tax
and net income tax from banks and corporations, and
the personal income tax from individuals, proprietorships,
and partnerships. Contact the Franchise Tax Board's
office for more information and assistance:
The Franchise Tax Board
P.O.BOX 942840
Sacramento, CA 94240
Recorded Information: (800) 338-0505
General Information: (800) 852-5711
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*The Build WorkSource web site provides material on topics of interest to businesses. It is not intended as legal advice or to answer specific legal or employment problems. The information presented in the Build WorkSource web site is from many sources therefore there can be no warranty or responsibility as to the accuracy, originality or completeness. Build WorkSource is not engaged in rendering legal or other professional counsel.