The IRS utilizes Employer Identification Numbers (EINs) along with other federal and state agencies to monitor taxes, filings, as well as other aspects of the business. Getting the EIN only for one company is relatively easy. But what happens if you have to obtain multiple EINs? No worries; we’ve prepared our complete, step-by-step guide for you.
Step 1: Understand What An EIN Is And If You’ll Need One
Before applying for more than one EINs, it is essential to know what EINs are and the prerequisites to get them.
What Is An EIN?
A tax ID is a Tax Identification Number (TIN) used by the IRS and other official bodies to identify your company or company. An EIN is required to file and pay taxes and correspond to the IRS. Federal and state agencies also use it to aid in their administrative processes. Additionally, some banks might require an EIN to establish an account with a bank for business or to obtain small business credit. Imagine an EIN equivalent to a Social Security identification number used by the business.
Requirements To Get An EIN
No matter if you require multiple EINs or one EIN, you must apply for an EIN If one of the following is valid:
- You are the owner or manager of the partnership S Corporation, C Corporation, non-profit or an LLC with multiple members.
- You’ve got someone on a payroll system.
- Anyone can earn any salary, apart from payments to owners.
- You must file Employment, Excise, or Alcohol, Tobacco and Firearms tax returns.
- You are involved in estates, mortgages on real estate investment conduits, and other companies.
If the three conditions are proper, you don’t need an EIN.
- It is a sole owner or a single-member LLC.
- It would help if you did not work with other people.
- The owners are not compensated via payroll.
If any of the above does not apply to you, then you should be registered with an EIN for your company.
There are many positive reasons to apply for an EIN, even if you’re legally required to have one:
- Simply using your Social Security number could make you more susceptible to identity theft.
- Government agencies, banks and other organizations might require an EIN to access certain products and services.
- Tax IDs are separate and allow you to develop the business credit score.
- The State’s Department of Revenue may require an EIN.
- You’ll require an EIN to fill out a Form W-9 and some 1099 forms.
Step 2: Determine If You Need Multiple EINs
You’ll Require Multiple EINs If:
It is the time to start multi-business entities, for example, a multi-member LLC and an S Corp, C Corp, LLP, partnership or non-profit. Each of them will require a different and unique EIN. It is impossible to apply for an identical EIN for several businesses, even if the same individual operates them. EINs are not limited, and you can use as many as you require.
You’re dividing your company into distinct companies. If, after the division of a company, it operates as an independent entity and you create a different legal entity for each of them, each one will require an individual EIN.
You Don’t Have To Have Multiple EINs If:
There is a single business that has multiple Divisions. Suppose all divisions are part of one parent company and operate under an identical management system. In that case, they could all be operating with an EIN that is the same.
You own a DBA/Fictitious identity. You will only require one EIN if you have multiple DBAs for a single entity. For instance, if you have a multi-member LLC named The Blue Widget Holding Company, it operates under three different DBAs that only require one EIN.
Step 3: Application Multi-EIN Apply
You now know the number of EINs you’ll require; now is the time to apply for them.
The procedure for obtaining multiple EINs is the same as for a single EIN. However, you’ll require it to be done multiple times. Be aware that the IRS restricts the times you can request only one EIN daily.
Begin by filling in the Form the SS-4, “Application for Employer Identification Number.” You’ll need to submit and file an SS-4 form to the IRS for each EIN. Here’s what you need to fill out on each form:
- The name and address of your company.
- Your taxpayer identification numbers.
- The kind of company you’re applying for to get an EIN for.
- The reason you are making an application for an EIN is.
- The date your company began and the year of your accounting.
- The number of employees you anticipate hiring over the next 12 months.
- The date when you are expected to begin paying your wages.
- The primary function of your business.
- Third-party details.
Once you’ve completed your SS-4 EIN, once you have filled out the SS-4 for every EIN you can:
Apply online via your online application for the EIN, available on the IRS website. You will be issued your EIN immediately after confirmation.
Apply Via Email
By filling in the SS-4 form and sending it to:
Internal Revenue Service
Attention: EIN Operation
Cincinnati, OH 45999
Apply Via Fax
By filling in Form S-4 and faxing it to (855) 641-6935
Multi-EINs Obtaining Through Tax & Law Research Inc.
We provide a full EIN service that:
- It is easy to quickly and efficiently gather pertinent information on you and your company.
- Complete the SS-4 form on your behalf.
- Send your information to IRS for the EINs.
- Inform yourself of the EINs you were assigned by the IRS, usually within a business day.
The great news is that Tax & Law Research Inc.’s EIN service is offered at the cost of the Gold or Platinum business creation packages. In other cases, we cost a modest cost to get the EIN on your behalf.