With all the intricacies that need to be taken care of, starting a new business may be both exhilarating and overwhelming. Getting an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) is one such detail. A nine-digit number known as an EIN is given to businesses for tax-related reasons. If you’ve previously run a business, one concern that frequently comes up is whether you may use the same EIN for your new Limited Liability Company (LLC). Can I Apply a Current EIN to a New LLC?
The answer is no, an existing EIN cannot be used for a new LLC. Regardless of whether it is a corporation, partnership, sole proprietorship, or limited liability company, every business organization needs a separate EIN. This is so because an EIN cannot be transferred to another company entity and is linked to a particular one. Even though you are the only owner of both companies, they each require their own EIN.
Yes, every LLC needs a unique EIN. This rule has several exceptions, such as when the LLC is a single-member LLC without any employees. Instead of acquiring an EIN in this situation, the owner may utilize their Social Security Number (SSN). However, the LLC needs to have its own EIN if it has more than one member or employee. Is it Possible to Modify the Business Name on My EIN?
You can alter your company name on your EIN, yes. If the name of your company has changed, you must notify the IRS and amend the records. Filling out Form SS-4, the application for an EIN, is the way to achieve this. You must fill out the form with your company’s new name as well as any identifying details.
You must submit the necessary documentation to your state’s Secretary of State office if you want to add a business to your LLC. Depending on the circumstance, this usually entails submitting articles of amendment or articles of merger. The names, addresses, and other identifying information for both businesses must be provided. You must update your EIN with the IRS to reflect the new entity once the state has approved the filing.
Finally, every company organization, including LLCs, needs a distinct EIN. Each LLC requires a unique EIN, and you cannot utilize an existing EIN for an existing LLC. Filling out Form SS-4 will allow you to notify the IRS of any name changes to your company. You must submit the necessary papers to your state’s Secretary of State office and update your EIN with the IRS if you want to add a business to your LLC. You can make sure that your company is in compliance with IRS rules and stay out of any trouble by adhering to these recommendations.
No, if the ownership moves to another sole member, the LLC still only needs one EIN. The existing EIN can be easily transferred to the new owner. However, a new EIN would be required if the LLC added members or changed its tax classification.