Do I Need a Different EIN for Each DBA?

An Employer Identification Number (EIN) functions as a federal tax ID for a business, similar to how a Social Security Number (SSN) identifies an individual. It is a nine-digit number assigned by the Internal Revenue Service (IRS) for tax filing and reporting purposes. A Doing Business As (DBA) name, also known as a trade name or assumed name, allows a business to operate under a name different from its legal business name without forming a new legal entity. This article clarifies when a separate EIN is required when using a DBA.

Using Your Existing EIN with a DBA

A DBA does not create a separate legal entity; it is an alias for an existing business structure. Consequently, in most scenarios, a new EIN is not necessary when a business decides to operate under a DBA. The underlying legal entity, whether a sole proprietorship, partnership, Limited Liability Company (LLC), or corporation, continues to use its original EIN for all federal tax obligations. This remains true regardless of how many DBAs an entity might use.

For instance, a sole proprietor who uses their SSN as their taxpayer identification can continue to use that same SSN for all business activities, even if operating under multiple DBAs. If that sole proprietor already possesses an EIN, they would continue using that existing EIN for all DBAs. Similarly, an LLC or corporation that already has an EIN will use that single EIN for all income reporting, payroll, and other tax-related activities, even if it conducts business under several different assumed names.

When a New EIN Becomes Necessary

While a DBA typically does not trigger the need for a new EIN, certain changes in a business’s legal structure do require obtaining a new one. These situations arise because a new legal entity is formed. A new EIN is generally required when an entity’s ownership or structure changes.

For example, if a sole proprietorship incorporates, forms an LLC, or takes on a partner to become a partnership, a new EIN is required for the newly formed legal entity. Similarly, if a partnership dissolves and one partner takes over the business as a sole proprietorship, a new EIN is needed for that sole proprietorship. Acquiring an existing business and operating it under a different legal structure, such as buying a sole proprietorship and running it as an LLC, also necessitates a new EIN.

The Process of Getting a New EIN

If a new EIN is required due to a change in business structure, the application process involves gathering specific information and submitting it to the IRS. The primary document for this application is IRS Form SS-4. Before applying, businesses need to gather details such as:
The legal name of the entity
Its mailing and physical addresses
The type of entity
The reason for the application
The name and Taxpayer Identification Number (SSN or ITIN) of the responsible party

Once the necessary information is compiled, there are several methods for submitting the EIN application. The fastest and most common method is applying online through the IRS website, which typically provides the EIN immediately upon completion. Alternatively, businesses can fax the completed Form SS-4, with the EIN generally returned via fax within four business days if a fax number is provided. Mailing the Form SS-4 is also an option, though this method has the longest processing time, typically ranging from four to five weeks.