Many business owners frequently ponder whether their EIN and LLC name have to coincide when it comes to starting a company. They do not need to match, is the quick response. There are, however, a few crucial things to remember.
The IRS issues each business with a special nine-digit number known as an EIN (Employer Identification Number) for tax-related purposes. The legal name of the company that is registered with the state government is, however, the LLC name. Even though these two names don’t have to match, it’s crucial to make sure they appear consistently on all tax and legal paperwork.
By submitting Form SS-4, you can amend your business name with the IRS to include your LLC name. This form is utilized to amend the data related to an existing EIN or to apply for a new EIN. You can provide the legal name of your LLC in section 1 of the form. You can list any additional trade names or “doing business as” (DBA) names you want to use in conjunction with your EIN in section 2.
You can also modify the business name listed on your EIN. To do this, you must submit Form SS-4 and write the new name in section 1 of the form. Additionally, you must change the name of your LLC with the state government and any other pertinent organizations.
Entrepreneurs also frequently inquire about the possibility of operating many firms under a single LLC. Yes, it is possible to operate several enterprises under a single LLC. Some states accept what is referred to as a “series LLC” in this situation. To be sure that this structure is suitable for your particular case, it is crucial to speak with a lawyer or accountant.
Finally, it’s crucial to weigh the advantages and disadvantages of both an LLC and a sole proprietorship while choosing between them. Despite being simpler and less complicated to set up, a sole proprietorship does not offer the same level of liability protection as an LLC. With an LLC, the owner’s private property is typically shielded from any corporate debts or legal actions.
In conclusion, even if your EIN and LLC name don’t have to match, it’s still crucial to make sure they do on all official papers like tax returns. You can submit Form SS-4 to the IRS to add your LLC name to your business name. By submitting Form SS-4 and changing the name of your LLC with the state government, you can also modify the business name listed on your EIN. Additionally, it is feasible to operate many firms under a single LLC, but it is crucial to speak with an expert to make sure that this structure is suitable for your particular circumstances. It’s crucial to weigh the advantages and disadvantages of both an LLC and a sole proprietorship while choosing between them.
You will require a new EIN for your second business if it is a sole proprietorship, partnership, or LLC and the structure is different from your previous business. However, you can utilize the same EIN if the structure is the same and you are merely adding a new firm under the same entity. It’s crucial to remember that every company entity needs to have a distinctive name, and registering the business name could be subject to state-specific rules.