The answer to this question is yes. In many cases, someone might own several corporations, partnerships, etc. that would require them to have many different EIN or employer identification numbers. Since they would all technically be individual businesses, then obtaining individual tax identification for each is necessary. You can obtain an EIN by using the website IRS-EIN-Tax-ID to fill out their three-step application where they have experts available 24/7 to make the usually frustrating process, so much easier.
An EIN is important for several different reasons. For example, you might be wondering how to get an EIN for a trust. A trust is an arrangement that has certain rules for property or assets held for its beneficiaries. Many people place the property in a trust because it can save time and money because you are avoiding a probate. Depending on the type of trust you have will depend on the EIN you receive. If it is a revocable trust, it will use the social security number of the person over the account and can be changed or altered. An irrevocable trust cannot be changed or altered without the permission of beneficiaries. It would require obtaining a tax identification number. Knowing which trust you have will help determine if you need an EIN or not.
More reasons to get an EIN include:
- If you are recently opened a business
- If you are hiring employees
- If you are over an estate
- If the bank account, you opened requires one
- If you want to create a business line of credit
There are several other important factors that would also determine whether or not you are eligible to obtain a tax identification number. Making sure you have all the employer identification numbers for all your businesses is crucial to make sure you are running a legal and legitimate company through the eyes of the IRS.