If a sole proprietor needs an EIN, how many cover multiple businesses and trade names?

Just one. One EIN generally covers all of that owner's sole-proprietor businesses.

Start playing free

  1. One per trade name
  2. Just one ✔
  3. None, ever

Why: IRS instructions say a sole proprietor files only one Form SS-4 and needs only one EIN, regardless of the number of businesses or trade names. Incorporating or forming a partnership requires a new EIN.

Huh, didn't know that: A sole proprietor with no employees often uses their Social Security number; hiring employees is a common reason to get an EIN.

The dad joke
Why did three shops share one number? Their sole proprietor knew how to count costs.
Like this card?
Play the game

References

Answer: Just one. IRS instructions say a sole proprietor files only one Form SS-4 and needs only one EIN, regardless of the number of businesses or trade names. Incorporating or forming a partnership requires a new EIN.

  1. IRS: Instructions for Form SS-4 www.irs.gov/instructions/iss4
    a sole proprietor should file only one Form SS-4 and needs only one EIN, regardless of the number of businesses
    Checked 2026-10-11.

Think this answer is wrong? Tap "Challenge this answer" on the card in the game and tell us why.

Test yourself in the game