PDA

View Full Version : Multiple Businesses Under One EIN (Tax ID)



Sherri
01-08-2006, 09:34 PM
Hi,

I was wondering if anyone could provide some information on running two businesses under the same Tax ID in the state of NJ.

I have a small clothing line that was established (Trade Name registered via my county) in 2003. I have not done much business on it in the past year, however I do have future plans and don't wish to dissolve it. At the same time, I am setting up another very small venture and was curious to know if I can use the same TAX ID for both. I have no employees and the TAX ID for both is (and will be) mainly used for buying supplies/vendor purposes.

If anyone has any information, I would greatly appreciate it. I did some research via my state government page but it wasn't 100% clear.

hw15
04-06-2006, 01:37 PM
From what I've read elsewhere, you may have multiple businesses under one EIN. I assume that your company is either not a sole prorietorship or you had employees in the past, since you already have an EIN.

If your company is a sole proprietorship, you should just register a DBA (or Assumed Name) for each additional company name you want to start. You would only have one EIN in this case.

See this link:

http://www.irs.gov/businesses/small/article/0,,id=98011,00.html

The IRS website states that sole proprietorships should use only one EIN for multiple businesses. Corporations with divisions may share an EIN but subsidiaries of corporations must aquire their own EIN.

Hope this helps.

http://www.cluemein.net/smallbusiness