Generally, you will not need a new Employer Identification Number (EIN) if you move as a sole proprietor to a different state. Since the Internal Revenue Service (IRS) uses your EIN to track federal tax obligations for business operations within a United States territory, it typically doesn’t matter if you relocate to another state. You will, however, need to contact your new state’s Revenue Department to make sure you are set up to pay appropriate state taxes for your new physical address.
Why Would I Need a New EIN?
Even though most small business owners only need one EIN regardless of a move to another state, there are some instances where you could need to apply for a sole proprietor EIN in your new state. If you want to open a separate business in your new state or develop a subsidiary of a Limited Liability Company (LLC) in a new state, you will need a new EIN.
Every legal entity must have an EIN. Your business is considered a legal entity if it engages in contracts and agreements, and if it incurs or pays debt separate from the business owner or owners.
If you are taking your business into a new state, you can have one less headache. When it comes time for your business to relocate, you will not have to get a new EIN. This will help you avoid having to complete the EIN application once again.
The EIN is a nine-digit number used by the Internal Revenue Service to identify your business as a tax-paying entity. They will use the same number to identify your business, regardless of your state. You will want to have the number handy as it can help you in paying the appropriate taxes for your business.
There are rare instances when you are going to have to apply for a sole proprietor EIN in your new state. A new EIN is needed when you move to a new state and are trying to get a subsidiary of a Limited Liability Corporation.
The process to secure your EIN is easy and quick, and you can use your new number immediately. This number will be helpful in not only helping you secure capital for your business, but opening a bank account. The online application is far more efficient, as an application submitted by mail can take up to two weeks to return.
Any type of entity can easily apply for an EIN. Whether you are a sole proprietor, trust or limited liability company, you can secure capital for your business. The process is the same regardless of your location or kind of business.
When you are completing your EIN application, make sure to keep the number close. This number will serve you well throughout the life of your business, whether you are trying to get more funding or complete your taxes. You will want to keep your number when you move your business.
How to Apply for a New EIN Online
You can apply for a new EIN number in several ways, including over the phone, by mail, by fax, and online. Online applications are easy. The process takes as little as a few minutes or as much as a few hours. Either way, online is still more efficient than other application processes which can take up to 2 weeks.
IRS-EIN allows business owners to complete their EIN application quickly and simply online. We can usually return results to you within 1 to 2 business days, and often you will get your EIN approval in less than 24 hours. You can also check the status of an EIN online when you use IRS-EIN to process your new EIN application.