If you run a business, you probably already have an EIN. However, as your company grows or you start new businesses, you may be wondering, “Do I need a new EIN?” Here are some answers to help you understand when you can have multiple EINs.
How do you manage multiple businesses?
It is not possible to use the same EIN for different Entity types or for businesses that are not related. ... If you have multiple businesses that are taxed differently, such as a corporation and an LLC. Because these types of businesses fall under different tax rules, they require separate EINs.
Can I change the business name on my EIN?
When you change your business name, you generally do not have to file for a new EIN. Instead, you submit an EIN name change. ... If you change your name soon after you file your annual tax return, then you can inform the IRS of the EIN number change name through a signed notification, similar to a sole proprietorship.
Can an EIN Cover Multiple locations?
An important part of figuring out how to open a second business location is the following IRS requirements. You do not need a new Employer Identification Number (EIN) for your new business location. But, if you are changing your business’s structure, you will need a new EIN for your entire business. For example, if you are a sole proprietor and you want to incorporate, you will need a new EIN.
Every state and some localities have different rules for adding business locations. Some states require you to register the new location separate from your current business. Other states allow you to use the same ID number for all locations. Check with your state and local business agencies for details about licenses, permits, and tax registrations.
How do I update my EIN information?
To change your entity's mailing or business location address with the IRS you will use Form 8822-B, Change of Address - Business. Mail the completed form to the appropriate office found in the box below. To change the Responsible Party you will need to submit a letter to the IRS.
Do I need a separate EIN for each DBA?
Generally, businesses need a new EIN when their ownership or structure has changed. Although changing the name of your business does not require you to obtain a new EIN, you may wish to visit the Business Name Change page to find out what actions are required if you change the name of your business.
The simple answer to the question of how many EINs you are allowed is as many as the number of business entities you have. A single business or entity can have only one, although there are situations where you will need to apply for a new one due to changes to your business.
Can I have 2 businesses under one LLC?
Yes, you can have multiple businesses under one LLC. This is accomplished by simply running all business activities within one LLC. ... Meaning, you don't have to file a DBA to run multiple businesses under one LLC, but you certainly can file a DBA (or multiple DBAs) if you'd like. Generally, businesses need a new EIN when their ownership or structure has changed. It is not possible to use the same EIN for different Entity types or for businesses that are not related. ... If you have multiple businesses that are taxed differently, such as a corporation and an LLC.
The Key Takeaway
If you determine you need another or multiple new EINs, the easiest and fastest way is to complete an online application. Other application methods, such as by mail or phone call, can take several weeks to complete. GovDocFiling makes the whole process simple and efficient. You can get numerous EINs swiftly delivered straight to your email. As you operate multiple companies, you may need to shut one down. In that case, you can read our FAQs on how to cancel an EIN.
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The federal government classifies a business run by an individual as an unincorporated enterprise as a sole proprietorship. More than 23 million sole proprietors filed tax returns with the Internal Revenue Service as of 2007, according to a 2011 IRS report. While the IRS requires many businesses to have an Employer Identification Number (EIN), sole proprietors do not need an EIN unless they fit certain characteristics defined by the federal agency.
Purpose of an EIN
The federal government uses the EIN, a nine-digit number, to identify business entities when they file tax forms. The number assigned to a business can identify where the business is located. An EIN is also referred to as a Federal Tax Identification Number
Obtaining an EIN
Sole proprietorships can apply for an EIN by filling out Form SS-4 and submitting it via mail or to an IRS regional office. The agency also provides online filing at IRS.gov. The Web-based interview-style application allows a business to obtain an EIN immediately after submission. You are limited to requesting five EINs per day. There is no charge to apply for an EIN.
Sole Proprietorship EIN Requirements
The IRS provides a simple questionnaire on its website to help sole proprietors determine if they need to apply for an EIN. Businesses who have employees must file for an EIN. If a business withholds taxes on income paid to non-resident aliens for anything other than wages, it must also file for an EIN. Other conditions that require filing for an EIN include having a retirement plan and/or filing tax returns for excise, tobacco, alcohol or firearms.
Usage
As soon as you receive your EIN from the IRS, you can use it for many purposes. Some states require businesses to have an EIN to pay for state taxes. In addition to using the number to file federal taxes, sole proprietors can also use the EIN as an identifying number when applying for state and local business licenses, for opening a bank account and other financial purposes. You are not required to apply for a new EIN if you change the name of your business, but you must contact the IRS via mail about the change at the address where you file your federal taxes.