The EIN is a unique nine-digit number issued by the Internal Revenue Service to a business. In some cases, an EIN can be used for multiple businesses. Both will operate under the same business entity.
When Is an EIN Not Required?
If you’re just starting your business as a sole proprietorship or single-member LLC with no employees, an EIN is not required. Obtaining an EIN can be done at no cost in five minutes when registering with the IRS.
Liability and Separate EINs
The answer depends on the structures and how you want to protect assets. Different entities require different EIN’s. If two companies share an EIN, then both are liable if one is sued. That is why most owners prefer a separate one for each entity.
One LLC can have multiple businesses under it. However, if the structure or ownership changes, they cannot use the same EIN. All businesses taxed differently need separate EINs. In some states, if a business opens a second location, it doesn’t need a new EIN.
You can have multiple DBAs under one sole proprietorship or multiple names under one corporation. A company can use an EIN across units with multiple names, not set up as separate businesses.
It is not possible to use one EIN for different entity types or unrelated businesses. Employees should know work for other companies counts for overtime.