Can two LLCs have the same EIN?
While each LLC typically requires its own EIN, there are cases where multiple LLCs can be consolidated and operated under one EIN.
If you have multiple businesses and they are not established as legally separate entities, you can use the same EIN for all of them, even if they have different trade names or “DBA” names. The IRS, which issues EINs, is a federal body, and trade and DBA names are a state matter.
Regardless of whether the EIN is ever used to file Federal tax returns, the EIN is never reused or reassigned to another business entity.
After a business registers with a tax ID, owners can choose to operate under one or more DBAs. Whether you pay taxes through an SSN or EIN, DBAs are your business nicknames and, therefore, you won't have a separate tax ID for a DBA.
If you already have an EIN and the organization or ownership of your business changes, you may need to apply for a new number. For more information, refer to Do You Need an EIN and Publication 1635, Understanding Your EINPDF.
Your existing single-member LLC won't need a new, separate EIN if: You change your LLC's name. Your LLC moves to a new location or adds additional locations. You operate multiple businesses (i.e., if you operate another separate business entity)
An LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN.
So, for example, Francine Smith could operate under Fran's Fabulous Footwear, which works from a legal angle if the name is registered with county or state agencies. A sole proprietor can have multiple DBAs for unrelated businesses under the umbrella of a single taxpayer identification number (TIN) or EIN.
As you can see above, almost every type of business must apply for a new EIN upon changing the entity type. This means that if you are currently a sole proprietor and wish to create a partnership or incorporate, then you will get a new EIN.
If you operate as a single-member LLC (where you are the sole owner with no partners or co-owners), you are not required to have an EIN unless you have employees or file excise tax returns. Still, you may need to obtain an EIN to open a business bank account in the name of your LLC.
Do I need a new EIN to go from sole proprietorship to LLC?
Yes, you can change your EIN from your sole proprietorship to an LLC, but you will have to obtain a new EIN. To change your EIN from a sole proprietorship to an LLC, you must complete Form SS-4, Application for Employer Identification Number, available on the IRS website.
You need to complete Form 8822-B and send it to the IRS to change the EIN Responsible Party for your LLC. If the Responsible Party for your LLC has changed, you'll need to update the IRS as soon as possible, as per their requirements. Note: Form 8822-B can also be used to change your LLC address with the IRS.
To transfer EIN to new owner isn't possible. EINs, or Employer Identification Numbers, are not transferable from one business owner to another. There are circ*mstances in which a business owner may need a new EIN, however.
How much does it cost to get an EIN? Applying for an EIN for your California LLC is completely free. The IRS doesn't charge any service fees for the EIN online application.
You may receive your EIN immediately if you apply online. It usually takes at least four weeks if you apply via mail.
You can apply for a business loan with your EIN if you're a new business owner without established credit. However, you may also need to include your SSN and details about your personal finances because you'll likely have to provide a personal guarantee.
We recommend you form your LLC before you get your EIN. One of the main reasons is that when you apply for your EIN, the IRS application asks you to submit the approved legal name of your business and the date it was formed. So, it is helpful to have your LLC formed and registered before you try to get your EIN.
If you have an existing EIN as a sole proprietor and become a sole owner of a Limited Liability Company (LLC) that has employees, needs to file an employment or excise tax return, or is establishing a pension, profit sharing, or retirement plan, you need to get a separate EIN for the LLC.
Applying for an Employer Identification Number (EIN) is a free service offered by the Internal Revenue Service. Beware of websites on the Internet that charge for this free service.
LLC owners choose to lessen their individual self-employment tax burden by electing to have the LLC treated as a corporation for tax purposes. Classification as an S Corporation (under Subchapter S of the Internal Revenue Code) is what most LLCs select when aiming to minimize their owners' self-employment taxes.
What are the disadvantages of a single-member LLC?
The most significant disadvantage of a single-member LLC is that if you do not properly protect your personal assets, you leave yourself open to a lawsuit. It is crucial that you keep all LLC funds in your business bank account and do not deposit business funds into personal accounts or vice versa.
Risk of Identity Theft
Similar to personal identity theft, stealing your EIN is the first step in corporate identity theft. Once someone gets your EIN number, he can establish corporate credit card accounts, business banking accounts and even establish personal credit without your knowing it.
One LLC can fund another LLC either via an equity investment or a loan. There are tax and asset protection considerations for each type of funding you should discuss with a business attorney.
You can run two or more businesses under one LLC by either: running all the business activities under one LLC name, or. registering DBAs (“doing business as”), also known as Fictitious Names.
EINs never expire, and once an EIN is assigned to an entity, it will not be reissued even if the entity disappears. Do all businesses need an EIN? Sole proprietorships with no employees do not necessarily need an EIN.
