Understanding how the tax ID system works is vital to making sure your company is registered with the right records at the federal and state level. This can lead to a number of questions from entrepreneurs who want to make sure they have everything right before applying for a new EIN. One of the big concerns that comes up has to do with a business’s name. Since the EIN locks in a business record in perpetuity, it’s vital that you understand how your business name affects your EIN. Most of the time, you won’t need to change your EIN when you change your name, but there are some exceptions.
Can two companies have the same name? Yes. The EIN is a nine-digit number that acts as a unique taxpaying identifier, so it is easy for the IRS to make sure you are you. Once you receive it, that will be the primary identifier for your business on government documents. This way, businesses with the same name can be distinguished easily.
Can I use the same business name in different countries? Typically yes. While there might be local or state requirements that a business’s formal name be unique when it incorporates, jurisdiction from country to country differs, so you don’t have to worry about creating duplicate-named companies.
When does a name change require a new EIN? Basically, whenever your company becomes a new company. If you have a partnership tax ID but are changing to a corporation, then you will need a LLC tax ID number. Similarly, if you are dissolving your corporation, you would need to apply for a sole proprietor tax ID number for the new entity.
If you are currently looking for an updated EIN, let IRS EIN Tax ID Filing Service help. Get started with our easy online application today.
EIN is an abbreviation for Employer Identification Number. Like the name suggests, this number is used by the Internal Revenue Service (IRS) to identify legal entities for tax purposes. When a business acquires an EIN, the number shall be used in perpetuity by the IRS to identify this business—similar to the way the IRS uses Social Security Numbers (SSN) to identify people. We’ve had several clients ask us, “Do I need a new EIN if I change my name?” and we will explain why you do not need to change your EIN if you change your name below.
Even if the business changes its name, or you change your name personally, you will not be required to register for an EIN a second time. Once you register for an EIN, the IRS will use this number in association with your business as long as none of the following occurs:
A lot of changes can occur within a business before you’ll ever need to get a new EIN. This nine-digit identification number usually remains with a business as long as the business remains in operation, and it doesn’t become a different type of business entity.
The fastest and easiest way to get an Employer Identification Number (EIN) is to get an EIN online. When you register for an EIN online, you can avoid lengthy waiting periods. You will receive your EIN securely via e-mail on the same business day, unless submitted after 3:00pm PST or on the weekend days, the application will be processed on the next business day.
Additionally, our online portal allows you to check an EIN status online anytime you need to. Plus, we keep your account safe and secure so you can access your EIN if you ever lose or misplace it.
The short answer to the question, “Do I need a new EIN if I change my name?” is, no. But be aware that some circumstances do warrant a new EIN, though a name change is not one of them. Whether you need a Michigan tax ID, a California federal tax ID, or another state entirely, apply today.