How Many EIN Numbers Can I Have?
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An Employer Identification Number, or EIN, is a
nine-digit number used to track a business’s tax responsibilities by the IRS in
the United States. An EIN number is compared to a Social Security Number as it
has the same function, except it is for businesses instead of individuals. At IRS-EIN-Tax-ID, an EIN number can easily be applied for.
Only one EIN is needed per legal business, but there are instances when more
than one EIN number is needed. Learn more about multiple EIN’s below.
Multiple EINs
If you are a business owner who owns multiple
corporations, limited liability corporations, partnerships or other entities,
like an estate or trust, you are required by the IRS to have an independent
identification number. A Tax
ID for estate or other legal entities is needed for tax purposes.
Each separate legal entity will need an EIN. The term
legal entity is used to describe an entity that is able to engage in contracts
and agreements, incur debt and pay the debt, and be held liable for independent
actions.
Applying for an
EIN
If you need an EIN, you can easily apply online. You
will need to select the type of entity you have, be it a trust, estate,
partnership, corporation, etc. Once the type of business is selected, you will
need to fill out an application that focuses on this business type. After the
application is completed, hit submit.
After submission, approval must be provided for the
EIN. After you are approved, the number will be emailed to you. With this
number, you have a method of identification, which can then be used to create a
business bank account, a credit card for your entity or apply for loans.
The process is simple and helps you to save time in
obtaining an EIN number that will be used for your business.
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