If you’re starting a new venture, one common question arises: Do I need a new EIN for each business? The answer depends on your business structure and whether your new entity is considered legally separate from your existing one.
What Is an EIN?
An Employer Identification Number (EIN) is a unique number issued by the IRS to identify a business for tax and regulatory purposes. It functions like a Social Security Number but for businesses.
When You Need a New EIN
You will need a new EIN if:
- You form a new legal entity, such as a new LLC, corporation, or partnership.
- Your current business undergoes major structural changes (e.g., sole proprietorship converting to a corporation).
- You acquire another business and change its legal structure.
- You have multiple businesses under different LLCs or corporations.
Each separately registered entity must have its own EIN.
When You Don’t Need a New EIN
You may not need a new EIN if:
- You operate multiple businesses under one sole proprietorship or LLC (as long as they are not separate legal entities).
- You’re simply expanding operations or adding a new product line under the same entity.
- You’re opening a new branch of the same company.
Key Takeaway
Do I need a new EIN for each business? Yes—if the businesses are legally distinct entities. No—if they operate under the same legal structure.
