Do I Need a New EIN for My Second Business?

Doing business can be complicated, especially when it comes to taxes. If you're a successful small business owner and want to start a new venture, you may be wondering if you need a new employer identification number (EIN). The answer depends on the structure of your companies and your asset protection preferences. Generally, each business requires its own unique EIN. You can't use the same EIN for multiple businesses, even if they're owned by the same person.

EINs aren't limited, so you can request as many as you need. It's important to have separate EINs for each business entity because if one company is sued, both companies could be liable if they share an EIN. If you have several businesses and they are not established as legally independent entities, you can use the same EIN for all of them, even if they have different business names or “database administrator names”. However, if you recently changed your business from a corporation to an LLC or bought an existing business, you may need to apply for a new EIN. When your two companies have less than one number, the assets of both companies are at risk when it comes to liability. If you changed the name of your business or moved it to a new location, you can keep your current EIN.

However, if there has been a change in the structure or ownership of the company, an EIN cannot be transferred to a new owner. Getting another tax identification number doesn't have to be difficult. While changing your business name doesn't require you to obtain a new EIN, you may want to visit the business name change page to find out what steps you should take if you change your business name. Usually, this involves notifying the tax authorities of the change. Fundbox makes capital available to companies through business loans and lines of credit granted by First Electronic Bank, an authorized industrial bank in Utah, a member of the FDIC, in addition to bill compensation advances, business loans and lines of credit granted directly by Fundbox. Enable tax and accounting professionals and companies of all sizes to boost productivity, face change and deliver better results.

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