The short answer is: It depends on how your businesses are structured.
The IRS assigns one EIN per legal entity, and whether you can use the same EIN for two businesses depends on whether both businesses operate under one legal structure or as separate entities.
When You Can Use the Same EIN
You can use the same EIN if both businesses operate under the same legal entity. This is common when:
- You are a sole proprietor running multiple business activities.
- You have a single-member LLC with multiple business lines.
- You operate DBAs (Doing Business As) under one EIN and entity.
In these cases, the IRS treats it as one business for tax purposes.
When You Cannot Use the Same EIN
You must get a new EIN if:
- You form a new legal entity (e.g., a new LLC or corporation).
- You change the ownership structure of the business.
- Your new business is a partnership, multi-member LLC, or corporation separate from your existing business.
Each distinct legal entity must have its own EIN for tax reporting and regulatory compliance.
What Happens If You Use One EIN Improperly?
Using one EIN for multiple entities when it’s not allowed can result in:
- IRS penalties
- Tax confusion
- Legal complications
Always clarify your structure before assuming one EIN covers everything.
Final Thoughts
If you’re asking, “Can I use the same EIN for two businesses?”, evaluate whether your businesses are under the same legal entity. If they are, you may be fine. If not, you’ll need a new EIN.
