Do I Need More Than One EIN If I’m Operating My Business in Multiple States?

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Each state has its own regulations and limitations regarding business practices. This can make it confusing to set up a business that will operate in more than one state, either in physical locations or online. When it comes to taxes, you might have to pay both federal and state taxes, depending on the states in which you conduct your business. However, this does not mean you need more than one EIN; most businesses only need to have one. There are exceptions to this guideline; however. Generally, the exceptions are businesses that create separate subsidiaries. As a helpful guideline, think about what type of entity you create and whether it is considered a separate legal entity. If it is, you will need a separate EIN. However, if you have several businesses but they all conduct business under one legal entity, then you most likely only need an EIN for the main business.

Why Set Up Your EIN with IRS EIN Tax ID Filing Service

Generally, you need to fill out a Form SS-4 for each separate legal entity that you create for your business. Certain business structures, such as a sole proprietorship, might not require a special EIN; instead, you could use your social security number. Setting up a business can be confusing, and you want to make sure that you handle the foundation correctly. The different business structures and how that impacts their tax ID baffle many new business owners. They are left wondering what are the IRS entity types and what is an entity ID number.

Working with IRS EIN Tax ID Filing Service simplifies the process. You have a team of professionals available to answer your questions and ensure you have the appropriate number of EINs for your business operation. For most organizations, that is just one EIN. However, our professionals will help you determine if your business subsidiaries constitute additional legal entities and thereby require additional EINs. Begin the process of applying for your LLC tax ID number here. For those with a corporation, fill out the paperwork for an S Corp tax ID number on this page.

An Employer Identification Number (EIN) is used by the Internal Revenue Service (IRS) to track the federal tax obligations of legal entities operating within a US territory. You do not need multiple EINs to conduct business across state lines. However, you will need to contact your state’s Revenue Department to ensure you pay the appropriate state taxes in the state you’ve claimed is the business’ physical address.

Do I Need Multiple EINs? 

Most small business owners will only need one EIN to conduct business; that being said, there are circumstances that would requires the same person to obtain a second EIN.

For example, if a business owner wants to open a second business, or in the case he owns multiple corporations or wishes to develop separate subsidiaries of a Limited Liability Company (LLC), this person would need to get multiple EINs.

All legal entities must have an EIN. Legal entities are those that may engage in contracts, agreements, incur and pay debts, all on behalf of the business, and with total legal responsibility applying to the business, and not the individual business owners.

How to Apply for EIN Number

There are several ways to obtain an EIN including by mail, over the phone, or by fax. However, these application processes can take up to two weeks to complete. A faster and easier way to get an EIN is to apply for an EIN online.

Our simplified forms are easy to complete and only take a few minutes of your time. Plus, we return results within 1-2 business days, and in some cases, in less than 24 hours.

You can also check your EIN number online anytime using your personal account information. If you ever lose or misplace your EIN number, you can recover the information on our convenient site.

Select Your Entity Type to Apply for a Federal Tax ID Today