Will I Ever Need To Apply For A New EIN For The Same Business?

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Like people, businesses go through their ups and downs. Moreover, your business structure will change over time. But while the evolution of a company is normal, some business owners get frightened about what changes may entail. For instance, you may need to obtain a new employer identification number as your company grows.

Will I Ever Need to Apply for a New EIN for the Same Business?

At some point, many new business owners find themselves asking the question, Will I ever need to apply for a new EIN for the same business? The answer is yes, but only in certain instances.

As a sole proprietor, you will need to obtain a brand-new employer identification number if:

  • Your business incorporates.
  • You decide to use partners and change your business structure to a partnership.
  • You are the subject of a bankruptcy proceeding.

For corporations, you will need to apply for an EIN if:

  • You change your business structure to a sole proprietorship or partnership.
  • You get a new chapter from the secretary of state.
  • A new corporation is made after a merger.

While those two categories are the most common tax statuses, there are others that apply to other people. Below is a rundown of the rules for the rest of the tax statuses out there in the business world.

Partnerships

The law requires partnerships to file for a new EIN if:

  • Your company decides to incorporate.
  • Your partnership is taken over by one of its partners, who then opts to run it as a sole proprietorship.
  • You end an existing partnership and choose to start a new one.

Limited Liability Corporations (LLCs)

Your LLC will have to get a new EIN if:

  • A new LLC with multiple owners, known as a multi-member LLC, is created under state law.
  • A new LLC with only one owner, known as a single member LLC, is created under state law and opts to file as a corporation or an S-C
  • A new single member LLC is created under state law and is required to file excise taxes for tax periods beginning on or after Jan. 1, 2008, or an employment tax for wages paid on or after Jan. 1, 2009.

Estates

An estate has to get a new EIN if:

  • A trust has been formed using funds from the estate and is not just an extension of the estate.
  • You are the representative of an estate that is run as a business after the death of its owner. 

Trusts

A trust must file for a new EIN if:

  • There is a change in the identity of the trustee.
  • The beneficiary or grantor changes his or her name or address.

If you have any further questions, always remember that irs-ein-tax-id.com is your source for all of your tax status needs.

Getting a New EIN Application Online

IRS-EIN makes it easy and simple to not only get your new employer identification number within hours, but also to check EIN status at any time. Our safe and secure website allows you to give out your info safely. It will only be used for EIN purposes.

If you have any other questions, be sure to check out our FAQ section to learn more!

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