If you own two or more independent firms that are separate from one another, you may have two EIN numbers. If you run a restaurant and a retail store, for instance, you’ll need a different EIN number for each enterprise. However, a single business cannot have two EIN numbers. Applying for a new EIN number when your company already has one is against the law.
Having an EIN number for your company has a lot of advantages. Here are a few examples:
2. Hiring Employees: An EIN number is required if you intend to hire staff for your company. To submit the pay and taxes of your employees to the IRS, utilize their EIN number.
My LLC may not own another LLC.
Your LLC may really own another LLC. The term for it is a subsidiary LLC. The subsidiary LLC and the parent LLC are two different legal entities. The subsidiary LLC is thought to be owned by the parent LLC. The subsidiary LLC is permitted to have its own EIN and file tax returns on its own.
There cannot be a joint bank account for two businesses. Every company needs a separate bank account. It assists you in maintaining financial separation and preventing confusion. You can open numerous bank accounts in your name or the name of your company if you run multiple firms. Is Having Multiple Businesses Under One LLC Better?
Your needs and business goals will determine this. It is preferable to create separate LLCs for each of your independent firms if you have more than one. It aids in asset protection and liability reduction. However, you can combine many firms under one LLC if they are connected or share the same objectives. It enables you to save formation costs and paper effort.
Having an EIN number for your company is crucial, to sum up. If you own two or more independent firms that are separate from one another, you may have two EIN numbers. However, a single business cannot have two EIN numbers. However, each company needs to have its own bank account. Even though your LLC can control another LLC. If you have many independently operating enterprises, it is preferable to incorporate more than one LLC.
Yes, by adding more members to the LLC, a single-member LLC can expand to include more members. This can be accomplished by updating the operating agreement of the LLC and submitting the required documents to the state where the LLC is registered. It is significant to remember that getting a new EIN (Employer Identification Number) for the LLC may be necessary in addition to adding members to an LLC.
Generally speaking, a business is only permitted to have one EIN (Employer Identification Number), according to the IRS. But in other situations, as when changing its legal structure or launching a new corporate organization, a company might require a second EIN. To ascertain whether a second EIN is required and how to properly obtain one, it is crucial to speak with a tax expert or the IRS.