Applying for an Employer Identification Number (EIN) is one of the first steps you must take when beginning a business in the United States. The Internal Revenue Service (IRS) uses this number to identify your company for tax purposes. But what if you’ve previously requested an EIN but need to make a change? Can you obtain an EIN twice?
No, you cannot apply for an EIN more than once. Even if your company’s name, address, or organizational setup changes, the EIN you’ve been given remains with your company indefinitely once you have it. However, if you need to modify your current EIN, such as to fix an error or update your company information, you can do so by getting in touch with the IRS.
Given this, you are permitted to modify your company name while maintaining your EIN. You don’t require a new EIN if your company name has changed. Alternatively, you can just inform the IRS of the name change. You can accomplish this by sending a letter to the IRS requesting a change in your company name, along with a copy of the letter confirming your EIN.
Are subsidiaries possible for a lone proprietor? An individual proprietor may have subsidiaries, yes. It’s crucial to remember that every subsidiary will require a unique EIN. This is so because, while being controlled by the same person or company, each subsidiary is treated as a separate legal entity.
A fantastic strategy to establish credit for your business without utilizing your personal credit is by using an EIN. You can apply for a business credit card or a company line of credit to start establishing credit with your EIN. To increase your credit score, use credit wisely and make on-time payments on all of your accounts.
And finally, can you obtain a loan using your EIN? Yes, you can apply for a loan using your EIN. The majority of lenders will also require a personal guarantee from the business owner, which means that even if the company is unable to repay the loan, you will still be held personally responsible.
In conclusion, even though you can’t apply for an EIN more than once, you can, if necessary, update your current EIN. As a sole owner, you are permitted to have subsidiaries, establish credit using your EIN, and obtain financing using your EIN. To ensure that your company complies with IRS requirements, it is crucial to grasp the laws and guidelines governing EINs.
Although you can use your EIN number for business needs, you cannot purchase a home using it. Typically, obtaining a personal social security number is necessary to buy a home.