What Happens If You Have 2 EIN Numbers? Managing Multiple EINs

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Understanding EINs and Their Usage

An Employer Identification Number (EIN) is a nine-digit number the IRS assigns to businesses for tax purposes. It is used to identify tax accounts of employers and certain others who do not have employees. The format of an EIN is XX-XXXXXXX.

Applying for and Maintaining Multiple EINs

Businesses can have multiple EINs if they operate as separate entities. The IRS requires a unique EIN for each entity for tax purposes. Separate entities need different EINs, and generally, a new EIN is required when a business changes its ownership or structure. You cannot use one EIN for multiple entity types or unrelated businesses.

To get an EIN, taxpayers must complete Form SS-4, Application for Employer Identification Number, and submit it to the IRS. Submit separate SS-4 forms for each additional EIN.

FAQs About EINs

  • How many EINs can one have? The IRS imposes no limit on the number of EINs a responsible party may request for separate entities. However, the IRS issues only one EIN per responsible party per day.
  • Can an LLC have multiple EINs? Yes, as long as each is for a separate business entity.
  • Can I have an LLC and a sole proprietorship? An individual can operate as both, but an LLC cannot be a sole proprietorship.
  • What if I have 2 EIN numbers? Contact the IRS; they will instruct you to use one and disregard the other.
  • Can I apply for a new EIN if I already have one? Yes, given each is for a separate entity.
  • What if my LLC is dissolved? It cannot enter new contracts and must be dissolved to cease to exist legally.

Business Name and EIN

  • Can I change my business name on EIN? Yes, but in some cases, this may require a new EIN or a final return.

Safety and Security of Businesses

Operating separate businesses under different EINs can protect each company’s assets and income from liability risks affecting others. Multiple LLCs can provide this protection advantage.

  • Is it better to have multiple businesses under one LLC? Separate LLCs can offer distinct advantages in terms of liability protection.

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