When am I required to change my employer identification number (EIN)?

There was a change in your business and now you wonder, “Do I need a new EIN?” An employer identification number (EIN) is a nine-digit code provided by the IRS. This unique identifier acts as a social security number for businesses. Unlike personal ID numbers, there are times when a business needs a new EIN number.

When Do I Need a New EIN?

A new EIN is necessary when there is a significant change in the structure of a business or if the owners of the business change. If a company takes on a new form in such a way that it becomes an entirely new legal entity, the EIN must also change to reflect the status.

Here are some examples:

  •    A sole proprietorship files bankruptcy and reorganizes after the case is discharged
  •    A sole proprietorship becomes a partnership or reorganizes as corporation or LLC
  •    A corporation dissolves, and a single owner continues to operate as a sole proprietor
  •    New owners purchase or inherit an existing company but continue previous operations
  •    The principal actor in the business dies, and a new manager assumes responsibility

Corporations and LLCs have unique ownership structures. They may sell stocks or memberships to investors as a way of generating funds. While it is true that each of these acts constitutes a change in ownership of a portion of the firm, these events are not a cause for a new EIN.

When Don’t I Need a New EIN

Some normal business-related activities may seem like significant changes, but they do not require a firm to obtain a new EIN.

  •    Operating out of several locations
  •    Moving headquarters to a new facility
  •    Working in several different states
  •    Changing the name of the business

Large organizations may still choose to have multiple EINs to distinguish between activities within various departments.

Get Help with Your EIN

At GovDocFiling, we specialize in obtaining and helping you organize your business’s EIN. Use our convenient EIN number application for simple changes to your business. When you are ready to restructure, get started with our LLC online filing form

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