Do I need a new EIN if my entity changes?

As your business expands, you may need to change its entity type. What started as a sole proprietorship may need to evolve into a partnership. Maybe you are planning to incorporate your partnership. Eventually, your company’s profits and growth potential will outweigh the tax advantages of the structure you started with. You may be wondering, “Do I need a new EIN for each business structure change?” Read below to find out when to get an EIN number change.

New EIN for Sole Proprietors

If you’re operating as a sole proprietorship, you’ll need a new EIN if:

  • You form a partnership
  • You incorporate your company
  • You inherit or purchase another business and operate it as the sole proprietor
  • You file for bankruptcy

If none of these apply to you, then you don’t need a new EIN.

When Partnerships Need a New EIN

Are you wondering, “When do I need a new EIN for my partnership?” then here are your answers:

  • You incorporate your business
  • You take over and independently operate your company as a sole proprietorship
  • You start a new partnership

If none of these situations are relevant, don’t worry about applying for another EIN.

Corporation EINs

Do you have a corporation? If so, you’re required to get a brand new EIN if any of these situations apply to you:

  • You get a new charter from your secretary of state
  • You use the parent company’s EIN as a subsidiary
  • You become a subsidiary of a parent company
  • A statutory merger takes place, creating a new corporation
  • You change the structure of your corporation to a partnership or sole proprietorship

If you determine you need a new EIN for your corporation, learn how to get a tax form for an LLC or corporation.

Getting a new EIN is easy when you use GovDocFiling. Just fill out our convenient federal EIN application to get started.

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