Understanding federal tax regulations and reporting requirements for businesses can be a full-time job. That’s why an entire industry exists to support small businesses looking to make sure they comply with the law. One question that confuses a lot of entrepreneurs is the question of EIN possession. If you are wondering whether you need more than one EIN, or whether you can have more than one, the answer is more complex than you think.
The EIN number technically belongs to the entity it is registered to, not to an individual. That means if you register an EIN to an estate, it belongs to the estate. If you register it to a sole proprietorship, it’s the company’s. Since an individual might own multiple business entities and control them entirely, it is totally possible for that individual to “possess” multiple tax ID numbers. Those are not the numbers for that person, though, they are the numbers for the businesses, and each business or other taxable entity only gets one.
What Entities Need Tax ID Numbers?
Basically, a tax ID is needed for any entity that pays taxes or that must report income to the IRS, with the exception of individuals. The Social Security number is used for individuals instead. A list of the most common entities includes:
- Estates
- Nonprofits and churches
- Sole proprietorships
- Partnerships
- LLCs
If you own multiple businesses or you own a business while serving as the executor of an estate or trust, you will likely have to handle multiple EIN registrations at once, and that can be a complex job.
Register Your Tax Identification Number Today
For help getting your estate tax ID, check out the application page on IRS-EIN-Tax-ID.com. The site provides an easy and short SS-4 application geared toward your specific entity type, so it should be easy to get your tax ID. If you have questions, IRS EIN Tax ID Filing Service replies to inquiries during regular business hours. All you need to do is contact them with your query and wait for a response.
