The moment you pay someone wages, you are an employer in the eyes of two agencies: the IRS federally, and the Employment Development Department here in California. Registering with both is what lets you run payroll legally, withhold the right amounts, and stay clear of penalties that build up quietly in the background.

It also opens doors you will want later. Workers’ compensation coverage, payroll based lending, and most contracts that ask you to prove you are a real employer all start with these two account numbers. Getting them in hand before your first payday is far easier than fixing it after.

• Your legal business name and entity type, exactly as registered with the Secretary of State
• Your federal EIN, if you already have one
• The Social Security number or ITIN of the responsible party. The IRS asks for this to identify who controls the business. It is not published anywhere
• The date you paid, or expect to pay, your first wages
• Your business address, and the address where the work is actually performed if it is different
• A rough count of how many people you expect to pay this year