Can You Have More Than One EIN Number?

An Employer Identification Number (EIN) is a unique nine-digit number the Internal Revenue Service assigns to a business for tax administration. It functions much like a Social Security Number does for an individual, identifying a business for filing tax returns, reporting payroll, and opening bank accounts. While an individual has only one Social Security Number, the rules for EINs are different. The need for more than one EIN is dictated by specific changes in a business’s ownership or legal structure.

When a New EIN is Required

The primary trigger for obtaining a new EIN is the creation of a new legal business entity. If an individual or group already operating one business forms a completely separate company, that new company must have its own EIN. For example, if the owners of an LLC open a separate catering business as a new C Corporation, the corporation is a legally distinct entity and must apply for its own EIN, even if the ownership is identical.

A change in the legal structure of an existing business also mandates a new EIN. A sole proprietor who incorporates their business to gain liability protection by forming an LLC or corporation has changed the business’s legal identity. The original EIN was tied to the individual as a sole proprietor, while the new LLC or corporation is a separate entity requiring a new number. A new EIN is also necessary if a partnership incorporates or if one partner takes over the business to operate as a sole proprietorship.

The acquisition or inheritance of an existing business requires the new owner to secure a new EIN. The previous owner’s EIN is linked to that legal entity and does not transfer with the business assets. The new owner must apply for an EIN for the business they now control, which ensures tax liabilities are correctly assigned from the date of new ownership.

Other events, such as certain bankruptcy proceedings or statutory mergers, can also trigger the need for a new EIN. If a sole proprietor is subject to a bankruptcy proceeding, a new EIN is required for the bankruptcy estate. When two or more corporations merge and a new corporation is created, the newly formed entity must obtain its own EIN. The surviving corporation in a merger, however, continues to use its existing EIN.

When Your Existing EIN is Sufficient

Many common business changes do not require you to obtain a new EIN. Changing your business’s legal name or filing a “Doing Business As” (DBA) name does not alter the underlying legal entity, so the original EIN remains valid. You must notify the IRS of the name change, but a new application is not required.

Expanding your business by opening new locations or branches does not necessitate a new EIN. As long as these new locations are part of the same legal entity, they will operate under the existing EIN. For example, a single LLC that owns a chain of coffee shops can open multiple new stores, and all will use the same EIN for tax and payroll purposes.

A sole proprietor can operate multiple, distinct types of businesses without needing a separate EIN for each one. An individual might run a consulting service, an online store, and a lawn care business simultaneously as a sole proprietorship. All business activities are reported on the individual’s personal tax return using schedules tied to their one EIN or Social Security Number.

The Process for Obtaining an Additional EIN

Once you determine a new EIN is necessary, the application is a free service from the IRS. The most efficient method is the online application on the IRS website, which provides the new EIN immediately upon completion. Alternatively, you can file Form SS-4, Application for Employer Identification Number, by mail or fax.

Before applying, you should gather several key pieces of information. You will need to provide the following:

• The exact legal name of the business entity
• The business mailing address and physical location
• The name and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) of the responsible party
• The type of entity, such as an LLC, corporation, or partnership
• The primary reason for applying for the EIN

The timeline for receiving the number varies by application method. Filing Form SS-4 by mail can take four to five weeks for processing. Filing by fax is faster, taking about four business days if a return fax number is provided.