Multiple Businesses Under One EIN: When It Works and When It Breaks

Charles Storks
19 hours ago
7 min read

Multiple Businesses Under One EIN business owners

Can You Have Multiple Businesses Under One EIN? The Clean, IRS-Friendly Answer

Let’s keep this simple.

If you’re launching a second brand, adding a new service, opening a second online store, or running multiple income streams, it’s natural to ask:

Do I need another EIN—or can I use the same one?

Here’s the real answer:

The EIN is tied to the legal entity, not your brand

An EIN identifies a taxpayer (a business entity) for federal tax purposes. So the “multiple businesses” question is really a business structure question.

You can absolutely run multiple business activities under one EIN—as long as those activities are owned by the same legal entity.

And the IRS is unusually direct about this for sole proprietors:

You don’t need a new EIN if you… own multiple businesses.

That one line clears up most confusion.

But—there are still landmines. Let’s walk through them like a pro.

Start here: what exactly counts as “multiple businesses”?

When people say, “multiple businesses,” they often mean one of these:

Multiple brands under one company
Example: Your LLC runs a cleaning brand and a pressure-washing brand. Same owner, same LLC, different marketing names.
Multiple income streams inside the same entity
Example: Your sole proprietorship does consulting, sells an ebook, and runs a small ecommerce store.
Multiple legal entities (this is where people get in trouble)
Example: You formed two separate LLCs and want to “share” an EIN.

Those are three very different scenarios.

So, here’s the rule I want you to memorize:

One EIN = one legal entity (in most normal situations)

If you create another legal entity, you are usually creating another “tax identity” that needs its own EIN.

The IRS triggers: when you do need a new EIN

The IRS states, broadly:

You generally need a new EIN when you change your entity’s ownership or structure.

For sole proprietors, the IRS lists examples where you do need a new EIN, including:

Incorporating
Forming a partnership
Declaring bankruptcy

There’s also an IRS publication designed specifically to help people answer “Do I need a new EIN?” and it provides additional examples and nuance across corporations, partnerships, and LLC/disregarded entity situations.

Note: You don’t get a new EIN just because you’re expanding. You get a new EIN when you’re fundamentally changing who the taxpayer is.

“I have one LLC. Can it have multiple businesses under one EIN?”

In many cases, yes—and it’s common.

If you have:

One LLC
One owner (or the same ownership group)
Multiple services/products under that LLC

…you can often keep the same EIN and add:

DBAs (Doing Business As / trade names / assumed names)
multiple product lines
multiple websites

Important reality check

This is a business strategy question as much as it is a tax question.

Because when you run multiple activities under one LLC:

your liability is shared across all activities
your bookkeeping must be disciplined
your banking/merchant processing needs consistent naming

If you’re expanding into a higher-risk activity, I often prefer a separate entity. More on that in a moment.

The most common myth: “Can I use one EIN for two LLCs?”

This is the #1 misunderstanding I see.

If you formed two different LLCs, you are dealing with two separate legal entities.

Trying to “reuse” one EIN across both usually creates:

mismatched taxpayer records
banking and payment processor verification issues
messy tax filings
confusion when issuing/receiving 1099s

Instead, the clean ways to structure multiple businesses are:

One LLC + multiple DBAs (simplest)
Multiple LLCs (clean liability separation)
Holding company + subsidiaries (best for scaling, most admin)

The big “gotcha”: taxes may require separation even if the EIN stays the same

Here’s where beginners get blindsided:

Sole proprietors: you may need multiple Schedule Cs

The Schedule C instructions say:

“If you owned more than one business, complete a separate Schedule C for each business.”

That means you can operate under one EIN (or even your SSN), and still file multiple Schedule Cs if you genuinely have multiple businesses.

Why this matters:

It impacts how you allocate expenses
It impacts audit defensibility
It clarifies which business is actually profitable

If you lump everything together, you might think you’re doing “simple accounting”… but you’re actually creating confusion that can cost you time and money later.

A great way to decide to pick the structure that matches your goal

Most people want one of these outcomes:

Simplicity
Liability protection
Clean growth and future saleability

Here’s the comparison table that makes it click.

Comparison: One entity + DBAs vs separate entities vs holding company

Setup	What it is	EINs	Best for	Watch-outs
One legal entity + multiple DBAs	One LLC (or sole prop) runs multiple brand names	1	Low-to-medium risk businesses, fast expansion, one admin stack	Liability shared; bookkeeping must be clean
Separate entities (multiple LLCs/corps)	Each business is its own legal entity	Usually 1 per entity	High risk separation, partners per business, selling one later	More fees, more filings, more accounting
Holding company + subsidiaries	Parent entity owns multiple LLCs	Multiple	Scaling, acquisitions, asset protection strategies	Highest complexity; must keep records airtight

My practical preference:

If the businesses are similar risk and you just want to move fast, one LLC + DBAs is often the cleanest.
If one business could get you sued, create regulatory issues, or create big warranty/contract exposure, I lean toward separate entities.

Use this fast-troubleshooting flowchart (If X, then Y)

The little-known tip that prevents real-world headaches: get the W-9 naming right

This is where “one EIN, multiple businesses” setups go sideways—especially with clients, vendors, and contractor payments.

The IRS W-9 line 1 / line 2 rule (critical)

For a sole proprietor or disregarded entity:

Put the owner’s name on Line 1
Put the business/disregarded entity name on Line 2

If your W-9 doesn’t match your invoices and banking, you may run into:

clients delaying payment (they can’t match your info)
mismatched 1099 reporting
payment processor holds or verification requests

Quick W-9 naming checklist (use this)

Legal taxpayer name appears consistently (W-9 Line 1)
DBA/brand name appears consistently (W-9 Line 2 and invoice header)
EIN matches the legal taxpayer
Your bank account name matches the legal entity (and optionally includes DBA where allowed)

How to run multiple businesses under one EIN without chaos

Here’s the setup I recommend if you want to expand while staying clean.

1) Separate your money flow (even inside one EIN)

At minimum:

One dedicated business bank account for the entity
One business credit card
No personal spending mixed in

Better:

Separate accounts per DBA (if your bank supports it)
Separate credit cards per line of business
A simple monthly reconciliation habit

Cost-saving insight: This reduces tax-time cleanup and helps avoid “proof” problems later. Even mainstream tax guidance emphasizes the value of separating finances to reduce confusion and risk.

2) Separate your bookkeeping by business line

You don’t need separate entities to get separate visibility.

Use:

Classes/locations/projects in your accounting software
Separate income categories per line
Separate expense buckets per line

Goal: You should be able to answer, in 30 seconds:

Which business line is most profitable?
Which line is consuming cash?
Which line is growing?

3) Keep your branding and legal identity consistent

This is the “adulting” part of business.

Make sure your:

legal entity name
DBA/trade name registrations
W-9
invoices
website footer (business name)
bank account name…are consistent.

When you should stop and consider separate entities (and separate EINs)

If any of these are true, a separate entity is often worth it:

One line is higher risk (physical work, transportation, food, medical-adjacent, childcare, etc.)
You want a partner in only one business
You want to sell one brand later
You want to keep contracts, employees, or assets isolated
You want cleaner credibility for lenders/investors

Think of it this way:

One entity is like one ship with multiple rooms. Multiple entities are separate ships. If one ship sinks, the others can still float.

Start Your Business Today

Real-world scenarios: what I’d do in each

Scenario A: One owner, two service brands, same risk level

Example: mobile notary + document prep marketing brand.

Likely best:

One LLC
Multiple DBAs (optional)
One EIN
Separate bookkeeping classes per brand

Scenario B: Low-risk consulting + higher-risk field service

Example: marketing consulting + junk removal.

Often best:

Separate LLCs
Separate EINs
Separate insurance policies and accounts

Scenario C: You want to build a portfolio of brands you can sell

Example: ecommerce brands and content sites.