Can You Have Multiple Businesses Under One EIN?

Yes, you can have numerous firms under one EIN (Employer Identification Number). That’s the quick answer. The IRS issues an EIN, a special nine-digit number, to identify a business organization for tax reasons. It is used to submit tax returns, start a bank account, request a loan, and other things. Having numerous businesses under one EIN is possible, but there are a few things to think about.

The kind of corporate structure is one thing to take into account. You can utilize a single EIN for all of your sole proprietorship-based enterprises if you operate more than one. However, if you own multiple companies that are organized as distinct legal organizations, such as corporations or LLCs, each company will require its own EIN.

The nature of the enterprises should also be taken into account. It can make sense to have the businesses under one EIN if they are connected and operate in the same sector. Separate EINs could be preferable, nevertheless, if the enterprises are unconnected.

You might also need to file for a fictitious name or DBA (Doing Business As) registration in addition to operating multiple firms under one EIN. A business may use a name that differs from the entity’s legal name; this is known as a fictitious name. For instance, John Smith would have to file for a DBA if he ran a company under the name of Smith’s Landscaping but under the legal name of John Smith Landscaping, LLC.

A DBA is a false name that has been registered with a government organization, typically at the county or state level. The price to register a DBA varies in various jurisdictions, like Pennsylvania, but is normally under $100.

What distinguishes an LLC from a DBA, then? A legal company known as an LLC protects its owners from responsibility. A DBA is nothing more than the registration of a made-up name. In other words, a DBA cannot be an LLC, but an LLC may have a DBA.

In conclusion, it is conceivable to operate many firms under a single EIN, but there are a number of things to take into account. Before choosing to use one EIN or many EINs, it is crucial to understand the business structure and nature of the entities. In some cases, it may also be essential to register a DBA or false name.