Typically, a business only needs a new EIN if the structure of the business changes or if the ownership changes. Therefore, if you are the owner of a business in one state and you move your business to another state, you would not need a different business EIN number to carry on with the same business in your new state.
However, if the structure of your business changes with the move, then you would need to apply for EIN with a new tax ID application.
New Business Structure Requires a New EIN
For example, let’s say that you own a sole proprietorship in one state, and you decide to move to another state in order to join forces with another entrepreneur. Now your business is no longer a sole proprietorship but a partnership, which means that new IRS rules apply to it and you would have to obtain a new EIN by filling out an EIN number application.
If you’re confused about the different business structures and how they are classified, here is a brief overview:
• Sole Proprietorship: The simplest business form as it is not legally separate from its owner. Sole proprietors are not usually not required under law to obtain an EIN, although they may do so if they wish, because their social security numbers will serve the same purpose.
• Partnership: A business partnership is formed when two or more individuals operate a business together and share the profits as well as the management responsibilities.
• Corporation: A corporation is a legal entity that is separate and distinct from its owners and authorized to act as a single entity.
The differences among the different business structures mean that there are different rules that govern when a new EIN is required. For example, a sole proprietorship that files for bankruptcy is required to obtain a new EIN, but corporations and partnerships are not.
Regardless of your business structure, obtaining a new EIN from the Internal Revenue Service can be a complicated and time-consuming process. IRS-EIN-Tax-ID.com can help to streamline the process and save you time.