Obtaining a different Employer Identification Number (EIN) for each of your enterprises may be something you think about if you are an entrepreneur or business owner who owns several companies. This question has a complicated answer that depends on a few different variables.
Let’s start by defining what an EIN is. The Internal Revenue Service (IRS) issues each business an EIN, which is a special nine-digit number used for tax identification. It is comparable to a person’s social security number. An EIN is essential for every business that employs people, files taxes, or does business as a partnership or corporation.
Does a Second Business Require a New EIN?
You will require a new EIN if you operate a second business that is a distinct legal entity, such as a corporation or LLC. This is so that each legal entity can have its own EIN as the IRS views them as different taxpayers.
If a person owns several legally distinct enterprises, they may have more than one EIN. However, it is significant to remember that the IRS only allows one EIN request per person each day.
Yes, any LLC that is taxed separately needs a distinct EIN. Instead of acquiring an EIN for the LLC, you can utilize your own social security number if your single-member LLC is not taxed separately.
You should get in touch with the IRS to get the duplicate EIN cancelled if you unintentionally receive two EINs for the same company entity. Multiple EINs assigned to the same entity can be confusing and cause complications with tax filings and other business-related tasks.
In conclusion, you must obtain a different EIN for each business you own if those businesses are separate legal entities. Instead of acquiring an EIN for the LLC, you can utilize your own social security number if your single-member LLC is not taxed separately. Keeping track of your EINs is crucial to avoiding unintentionally obtaining numerous EINs for the same organization. It is advised to speak with a tax expert or the IRS immediately if you have any queries or worries about EINs.
Yes, under a single EIN (Employer Identification Number), you may have several DBAs. A single legal entity, such as a corporation or partnership, is given an EIN, and all of the DBAs connected to that entity are permitted to use the same EIN for tax reasons. However, it’s crucial to keep in mind that, depending on the regulations in the particular place, each DBA may need to register independently with state and municipal authorities.