Can You Use One EIN for Two LLCs?
Can you use one EIN for two LLCs? No. Each separate LLC needs its own EIN. Learn why, and what to do instead if you're forming more than one company.
- #Business Tax ID
- #EIN
- #Employer Identification Number
- #Foreign-Owned LLC
- #LLC Formation
- #Multiple LLCs
One EIN two LLCs? No. Each separate LLC needs its own Employer Identification Number. The EIN identifies a specific legal entity, so a second company needs a second number. This guide explains why and what to do instead.
One EIN Two LLCs: Is It Allowed?
No. Each LLC needs its own EIN. The IRS assigns an EIN to a specific business entity. A new LLC is a new entity, even if the same owner runs both companies.
Using one EIN for two companies can cause problems with banks, tax filings, and IRS records. Each return and account must match the entity that owns it.
Why Each LLC Needs Its Own EIN
An EIN works like a tax ID card for one business. It connects your company to its tax returns, bank accounts, and payroll records.
Two LLCs have different legal names, formation documents, and tax records. If they shared one EIN, the IRS and your bank could not tell which company owes which tax or activity.
What Happens If You Use the Same EIN for Two LLCs?
Sharing an EIN can create several issues:
- Bank problems. A bank may reject the account or ask for clarification if the EIN does not match the business name.
- Tax filing errors. Income, expenses, and forms can end up under the wrong company.
- IRS notices. Mismatched records can trigger letters asking you to correct the filings.
- Vendor and payment issues. Platforms and clients may refuse payments that do not match the name on the tax form.
What to Do Instead
If you are forming a second LLC, you need a second EIN. Follow these steps:
- Form the new LLC with your state.
- Apply for a separate EIN for that LLC. Use the IRS online application or Form SS-4, depending on your situation.
- Open separate bank accounts for each company.
- Keep records separate. Use different invoices, ledgers, and tax files for each LLC.
Key Details for Your Second EIN
- Online application: The IRS online EIN application is free and gives you the number right after you finish it.
- Online hours: The IRS online tool is available Monday to Friday, 7 a.m. to 10 p.m. Eastern Time.
- Form SS-4, lines 8a to 9a: Answer the LLC question on line 8a, enter the number of members on line 8b, and select the entity type on line 9a.
- Faxed Form SS-4: Processing typically takes about four business days when the form is complete.
- Cost: The IRS charges nothing for an EIN. Private services charge for help only.
Confirm current hours and processing times on the IRS EIN page before you publish, since they can change.
The IRS issues EINs free of charge when you apply directly. You can learn more on the official IRS EIN page.
What About a Series LLC?
Some states allow a series LLC, where one parent LLC has several series with separate assets and records. Whether a series can get its own EIN depends on state law and IRS rules. Check your state's requirements and speak with a qualified tax professional before you choose this structure.
Can You Reuse an EIN After Closing an LLC?
No. If you close an LLC, its EIN belongs to that closed entity. A new LLC needs a new EIN. Do not reuse the old number on new filings.
Frequently Asked Questions
Can I use the same EIN for two LLCs?
No. Each separate LLC needs its own EIN.
Does each LLC need its own EIN?
Yes. Each LLC is a separate legal entity, so each one gets its own number.
Can one EIN be used for multiple companies?
No. An EIN identifies one business entity. Separate companies need separate EINs.
Can a foreign owner use one EIN for two LLCs?
A foreign owner two llcs ein setup still follows the same rule. Each LLC needs its own EIN, so a second llc ein is required for every new company you form.
No. Foreign ownership does not change this rule. Each U.S. LLC needs its own EIN.
Next Steps
New to EINs? Read What Is an EIN? Comparing identification numbers? See ITIN vs EIN.
Need help getting a second EIN? Contact our team. The IRS issues EINs free of charge when you apply directly. Any fee from a private provider pays for assistance, not for the EIN itself.
Final Thoughts
Each LLC needs its own EIN. Sharing one number across two companies can cause problems with banks, tax filings, and IRS records. If you are forming a second LLC, apply for a separate EIN for it. The IRS issues EINs free of charge when you apply directly.
Official References
Related EIN Guides
If You'd Rather Hand It Off
Get your second LLC's EIN with EINNumber.io for just $49. The flat, all-inclusive price covers SS-4 form preparation, IRS submission, follow-up, and your EIN confirmation letter. Delivery is typically in 7 to 10 working days. The IRS charges nothing for the number itself.