You might be asking how many Employer Identification Numbers (EIN) a lone entrepreneur can have. The simple answer is that each single proprietorship can only have one EIN. This implies that you must file for a different EIN for each of your many sole proprietorships if you run them.
The Internal Revenue Service (IRS) issues an EIN, a special nine-digit number, to identify your firm for tax purposes. It is necessary for companies that hire people, submit taxes, or conduct themselves as partnerships or corporations. However, it is still advised that you get an EIN to separate your personal and corporate finances even if you are a sole proprietor with no workers.
You must notify the IRS of any changes to your business name if you wish to change your EIN. You’ll need to submit a new application with your changed information, and the procedure to update your EIN can take up to four weeks. It’s crucial to understand that getting a new EIN is not always the outcome of a name change. To get a new EIN, you have to fill out a new application.
Similar to this, you will need to file for a new EIN if you have significantly changed the structure of your firm, such as going from a sole proprietorship to an LLC or partnership. This is due to the fact that your company’s legal structure has changed, and a new EIN is now necessary to reflect this change.
It’s crucial to remember that you don’t need an LLC to get a DUNS number if you want to get one. A DUNS number is a special nine-digit number that Dun & Bradstreet assigns to distinguish your company’s credit file. Lenders and other companies use it to assess your creditworthiness and financial security. A separate legal company, such as an LLC, can help develop your business credit history and increase your chances of being approved for business loans and credit, even though having one is not necessary to get a DUNS number.
As a sole owner, you are only permitted to have one EIN for each business organization. You must file for a new EIN if you significantly alter your company name or structure. Additionally, although while establishing an LLC increases your chances of receiving company funding, it is not necessary to have one in order to get a DUNS number.