It can be confusing to figure out when you need a new Employer Identification Number (EIN) or if you need a new one at all. In addition, trying to sort out the unique needs for a partnership can be challenging. If you are already in a partnership and you are simply moving your business to a new state without changes to your company, you do not need to obtain another EIN. But, if you are forming a partnership in a different state, then you will have to apply for a partnership EIN.
Changing from a Sole Proprietor to a Partnership
It is common for entrepreneurs to change their business structure as their company grows. If you are a sole proprietor and you will be forming a new business venture as a partnership, you will need a partnership EIN. The formation of the partnership is the reason for applying for an EIN, not the move to another state.
Why do You Need a new EIN?
An EIN is the way the Internal Revenue Service (IRS) keeps track of a business for tax-reporting purposes. If you are forming a partnership, you will be changing your business structure and you will be subject to different requirements according to the IRS. Therefore, you must obtain a new EIN number for your partnership.
If You are Already a Partnership
If you are already in a partnership and you are moving to a different state and planning to incorporate in that state, you will need to obtain a new EIN. Additionally, if you create a new partnership or are in a partnership and instead decide to work independently as a sole proprietor, you will need to apply for a new EIN.
Cases When a Partnership Will Need a New EIN
Since you now know you don’t need a new EIN just because you want to move a partnership to another state, consider that there are some definitive circumstances that would require you to obtain a new EIN as a partnership.
Other Instances Where You Will Need a New EIN
As you think about moving your partnership to another state, you might be wondering about other types of business structures and their needs for a new EIN.
If you manage a corporation, you will need a new EIN if any of the following apply:
If you are a limited liability company (LLC), you need a new EIN if any of the following apply:
There are also other reasons why a business may need to file for a new EIN. IRS-EIN makes it easy for you to obtain a new EIN if you require one.
IRS-EIN can help you apply for an EIN online. You can also check the status of your EIN online, so that you know exactly when your new business is official with the IRS.