Operating Multiple Businesses under One LLC
The answer is yes–it is possible and permissible to operate multiple businesses under one LLC. Many entrepreneurs who opt to do this use what is called a “Fictitious Name Statement” or a “DBA” (also known as a “Doing Business As”) to operate an additional business under a different name.
Understanding LLCs and EINs
A Limited Liability Company (LLC) is a business structure that offers a mix of the limited liability protection of a corporation and the pass-through taxation of a sole proprietorship or partnership. This structure provides owners with personal liability protection while offering operational flexibility.
For example, if your business expands and you bring in new partners, your business will be taxed as a partnership instead of a sole proprietorship. In this case, you WILL need a new EIN. However, if your business moves locations, changes its name, or adds new branches, you will NOT need a new EIN—but you might have to contact the IRS to update your file.
If your LLC is still in good standing you could simply apply for a new license and keep the same company. If it is not, and cannot be reinstated, then you would need to start all over again, with a new company, new tax ID and new license.
If you have a change in LLC members, you’ll usually need to amend the articles of organization on file with the state to provide the name of new members and remove old ones. You may also need to issue a new membership certificate to the new owner.
In fact, most forms of new businesses have to obtain an Employer Identification Number (EIN).
Using a series LLC is also more affordable than creating a separate entity for each business. However, because most states don’t allow series LLCs, it may not be an option for you, depending on where you register your business.
Business Ownership and EIN FAQ
Can I use my old EIN number for a new LLC or a different EIN number with an existing business? Generally, businesses need a new EIN when their ownership or structure has changed. It is not possible to use the same EIN for different Entity types or for businesses that are not related. EINs do not expire. Once an EIN has been issued to an entity, it will not be reissued.
An EIN is similar to a social security number in that it has 9 digits. To differentiate an EIN from an SSN (123-45-6789), there are 2 digits followed by a hyphen and then 7 more digits (ex: 12-3456789).
Although changing the name of your business does not require you to obtain a new EIN, you may wish to update your details with the IRS.
Is your EIN number always the same? Yes, the company will always retain the same EIN, and the EIN will be permanent and will not need to be renewed.
You will be required to obtain a new EIN if a corporation files papers with the state to convert to an LLC and will use the default classification of partnership.
If you are a single-member LLC or a multi-member LLC, you can obtain an EIN easily through the IRS. The fastest way to get an EIN is to apply online, but you can also apply by mail or fax using Form SS-4.
LLC Conversion and Multiple Business Operations
There is much confusion about what an LLC must do if it converts to a Corporation. What happens if the LLC wants to change its tax classification to a C corporation? The LLC completes and files an IRS Form 8832 Entity Classification Election.
Ultimately, the decision on whether you need a new EIN will be made by the IRS, but as a general rule, any time a business re-organizes it will need to change EINs.
Can you use the same LLC for multiple businesses? Yes, entrepreneurs can set up a DBA or multiple DBAs for the new venture(s). If all of your businesses are in roughly the same sector but you want to keep them separate, you might consider using one LLC as a holding company with multiple LLCs under it.
More experienced business owners typically prefer multiple LLCs, or one LLC for each business entity rather than using the same LLC to cover all their business entities.
If you intend to establish multiple businesses under one LLC, premium online legal services can help you assess the pros and cons and guide you through the process.