We have a sub-s corp and a dba each with it's own Fein#

by Carl Diller
(des plaines, IL)

We have a sub-s corp and a dba, each with it's own Fein#. We file one tax return under the sub-s corp name which includes all the activities of the dba. Since we do almost all of our business under the name of the s-corp should we drop the dba fein number or put the dba under the umbrella of the s-corp?

Answer

I'm not sure why the DBA has a separate FEIN.

The purpose of a DBA is to do business under another name, but without creating a separate legal entity.

DBAs are often used by sole proprietors to operate their business with a trade name rather than their own name.

I would ask whomever set you up with a DBA under the s-corp why you did so, and if there is no longer a compelling reason for it, I'd stop using it.