Multiple sole proprieterships, multiple EIN?

[swarov]

Hello, I seem to be running into a problem but I am not sure if it really is a big deal or not.

I will try to explain it all clearly here.

I started a small retail business on the side of some products. I am a sole proprieter, have zero employees, and registered this business in NY, got an EIN with the business name, and registered for NY sales tax with this business name.

I am starting a second business which is online sales (drop ship) and am having trouble figuring out how to register everything.

I think I need to obtain a second EIN for this business name, and use that EIN to register for NY sales tax?

It just seems a bit unclear if it is even possible to obtain a second EIN using my Social Security number. I tried the online application but it gave an error and told me to call a number to speak to someone. Just trying to see on here if I am even remotely close to doing the correct thins to get everything set up right?

Thanks.

[vangogh]

If you're a sole proprietor your EIN is tied to you as an individual. I don't think you need to get a second one. I could be wrong with the taxes, but my understanding is as a sole proprietor you're ultimately filling out one set of tax forms for the IRS and so they only need the one EIN.

We've had this question come up before and here's what our resident accountant Evan said (http://www.small-business-forum.net/accounting-taxes/3394-ein-sole-proprietor.html#post35697) about EINs. Here's the relevant part from his post



If you're a sole proprietor, the EIN you are assigned is for you doing anything as a sole proprietor. So if you decide to run a jewelry repair shop, and a website development firm. a boutique hotel, and a pet supply store all as a sole proprietor, you can use the same EIN. The EIN belongs to you individually, or to a company specifically. It doesn't apply to just the name of the company you're operating. This is, unless, you change the legal structure of how you operate.


Hope that helps.

[Tmuse]

I realize this is an old thread but I believe still relevant. I had a question about my EIN. I have two unrelated businesses and am a Sole Proprietor. I realize I only need one EIN for tax purposes. The problem isn't with taxes (right now) but with banking. Currently only one of my businesses is on the EIN documentation. I need to set up a business bank account for the SECOND business, but its name isn't on the EIN documentation. How do I add the second business to the EIN I have? Is there a form? Is it not necessary? I've searched and searched online and can find no definitive answer to this question.
Thanks in advance.

[vangogh]

First know that I'm not an accountant or tax or banking expert. However, I feel confident everything below is correct.

If you're a sole proprietor there's nothing you need to do, which is why you can't find any forms. The EIN is attached to you, not specifically the business even though you set it up for a business. As far as taxes are concerned, you're still you an individual as opposed to a business. But like you said that's not the issue at the moment.

I don't think there's an issue with banks either. Just use the same EIN. I don't recall having to prove I had an EIN to open the account. Because you're still seen as an individual for tax purposes, the business accounts you're opening are more for your own bookkeeping so you can easily funnel money in and out of the right account for the right business. If you wanted you could set up a personal account for the second business and other than any deals the banks gives, it really doesn't make a difference.

Have you checked with your bank about this? What did they say?

[broudie]

I realize this is an old thread but I believe still relevant. I had a question about my EIN. I have two unrelated businesses and am a Sole Proprietor. I realize I only need one EIN for tax purposes. The problem isn't with taxes (right now) but with banking. Currently only one of my businesses is on the EIN documentation. I need to set up a business bank account for the SECOND business, but its name isn't on the EIN documentation. How do I add the second business to the EIN I have? Is there a form? Is it not necessary? I've searched and searched online and can find no definitive answer to this question.
Thanks in advance.

I'm just going through the same thing. I just opened a completely separate line of business. To get the name of the new business on my bank accounts, I filed for a DBA (doing business as) so that the second business is valid in the eyes of the government. Show the DBA paperwork to the bank and you should be able to put your DBA name in checking accounts, etc. Filing for DBA in NY is $25

[BizAdvisor]

Unlike other structures of business; i.e. LLC, Corporation, S-Corp... etc, the IRS doesn't view a sole proprietorship as its own legal entity, separate from its owner. Because of this, it is not necessary to use different tax numbers for each business because YOU, the OWNER are technically the "BUSINESS". Even though your sole proprietorships may change... You, being the actual "BUSINESS" does not.