If I Am Closing My Business, What Do I Do With My EIN?

Being an entrepreneur is both rewarding and unpredictable. You may reach a point where you find yourself in need of closing your doors, whether because the venture was unsuccessful or because you want to go in a different direction with your life. Just like starting a business, closing one also comes with a checklist of things to complete before you can officially be done. As you work on these steps, you may be looking for EIN information, specifically what you are supposed to do with your tax ID now that you are no longer in business.

Pay Off Taxes First

Before anything else, you must be current with all taxes and other financial reports. Mark “final return” on the tax form you fill out. Also, make sure your employees have their final W-2s for this year so they can pay their income taxes.

Close the Business Account With the IRS

Once you are done paying taxes, write a request to have the IRS close the EIN account for your company. Note that this only ends the tax obligations; the number will still belong to your business and will not ever go to a different one. This allows you to reuse later if you reactivate your business or start a similar one, so you do not have to go through the acquisition process again.

Know When To Apply for Tax ID

If you decide to start a new company with a different structure or make certain changes to the business you are reopening, then you will need to fill out an EIN application online to receive a new number. For example, you cannot use an existing S corp EIN for a new limited liability partnership.

Make the step to apply for an EIN easy by using our helpful online form, allowing you to focus on getting your business up and running again.