If you run a business, you probably already have an Employer Identification Number, or EIN. However, as your company grows or you start new businesses, you may be wondering, “Do I need a new EIN?” or, “Can I have two EIN numbers?”. Below are some answers to help you understand when you can have multiple EINs.
The short answer to “Can I have multiple EIN numbers?” is yes. The number of EINs you are allowed is as many as the number of business entities you have. A single business or entity can have only one, although there are situations where you will need to apply for a new one due to changes to your business.
It is not possible to use the same EIN for different entity types or for businesses that are not related. If you have multiple businesses that are taxed differently, such as a corporation and an LLC they’ll require separate EINs.
When you change your business name, you generally do not have to file for a new EIN. Instead, you submit an EIN name change. If you change your name soon after you file your annual tax return, then you can inform the IRS of the EIN number change name through a signed notification, similar to a sole proprietorship.
Although changing the name of your business does not require you to obtain a new EIN, you may wish to visit the Business Name Change IRS page to find out what actions are required. Also, you will need to change your EIN in situations where your company is becoming a new company. For example, if you dissolve your corporation and change the name, that would require a new EIN as the nature of the company is changing.
An important part of figuring out how to open a second business location is the following IRS requirements. You do not need a new Employer Identification Number (EIN) for your new business location, however, if you are changing your business’s structure, you will need a new EIN for your entire business. For example, if you are a sole proprietor and you want to incorporate, you will need a new EIN.
Every state and some localities have different rules for adding business locations. Some states require you to register the new location separate from your current business. Other states allow you to use the same ID number for all locations. Check with your state and local business agencies for details about licenses, permits, and tax registrations.
To change your entity's mailing or business location address with the IRS you will use Form 8822-B, Change of Address - Business. Send the form to the same address that you’d send your return to. To change the Responsible Party you will need to submit a letter to the IRS.
Multiple DBAs (Doing Business As) do not require separate EINs. Also known as using a “trade name” or “assumed name,” using a DBA does not change the ownership or structure of your business which is the only reason you would be required to change your EIN.
Yes, you can have multiple businesses under one LLC. This is accomplished by simply running all business activities within one LLC. Meaning, you don't have to file a DBA (standing for Doing Business As) to run multiple businesses under one LLC, but you certainly can file a DBA, or multiple DBAs if you'd like. Generally, multiple EIN numbers are required when you have different entity types or businesses that are not related and are taxed differently such as a corporation and an LLC.
If you determine you need another or multiple new EINs, the easiest and fastest way to accomplish this is to complete an online application. Other application methods, such as by mail or phone call, can take several weeks to complete.
We hope this article helped you understand if and when you can have multiple EIN numbers for your business. Do you have more business-related questions? ACAReporter can answer your compliance concerns. As specialists in Affordable Care Act compliance, we can help give you the tools to help stay compliant. Contact us to see what we can do for you!