You cannot use the same EIN for two different legal entities, is the short answer. A particular business entity, such as a corporation, partnership, or limited liability company (LLC), is given an EIN. The Internal Revenue Service (IRS) views each of these organizations as a separate taxpayer, and as a result, each one needs a special EIN.
You might be able to use the same EIN for all of your LLCs, though, if they are considered to be a part of a single larger business and you have several of them. You might be able to use the EIN of the parent business for all of your LLCs, for instance, if you have numerous LLCs that are owned by it. This is so that the LLCs can be treated as a single entity for tax reasons. Can I operate more than one business under a single LLC? You can operate many enterprises under a single LLC, yes. This is a relatively new kind of corporate entity called as a “series LLC” that is accessible in some states. For legal and tax reasons, each series within the LLC is regarded as a separate entity, even though they are all still a member of the same LLC. This means that even if the LLC contains many series, you only need one EIN for the entire LLC. Is Each Series LLC Required to Have Its Own EIN?
No, each series within an LLC is not required to have its own EIN. No matter how many series you have within the LLC, as was already established, you just need one EIN. Even while each series is treated separately for legal and tax reasons, they are all still a part of the same LLC.
You can indeed alter your company name while maintaining your EIN. As long as the ownership and organizational structure of the firm stay the same, you do not need to file for a new EIN if you alter the name of your company. Simply file Form SS-4 with the IRS to inform them of the name change.
Choosing between a sole proprietorship and an LLC relies on your individual situation. A sole proprietorship is an easy and affordable option to create a firm, but you bear limitless personal responsibility for its liabilities. On the other side, an LLC offers the owners limited liability protection but can be more difficult and expensive to set up. To choose the right entity type for your company, it is advisable to speak with a business attorney or accountant.
In conclusion, there are several exceptions to the general rule that you cannot use the same EIN for two different legal businesses. You might be allowed to utilize the same EIN for all of your LLCs if they are all seen as being a part of a single larger organization. Additionally, even if your LLC is a series and contains many series, you only need one EIN for the entire LLC. As long as the ownership and organizational structure of the firm stay the same, you can maintain the same EIN when changing the name of the company. Finally, your particular situation will determine whether you should form an LLC or a sole proprietorship.