Changing My Name, Will I Need a New EIN?

CHANGING MY NAME, WILL I NEED A NEW EIN?

We would like to address a question that is often asked by our clients: If I change my business’s name, do I need to apply for a new EIN?

It is very crucial that you understand how the tax ID system works to ensure that your company is totally legitimate and registered with all the right records at the federal and state level. Because before applying for a new EIN, there might be lots of questions for entrepreneurs who want to ensure that everything is okay for their business. One of them is about the business’s name. Most of the time, you do not need to get a new EIN when you change your name, but there are some exceptions.

When you first establish an EIN number, it matters whether you establish it as a sole proprietorship or as a limited liability company (LLC) or corporation. Therefore, if you establish the EIN number as a sole, all you have to do is to start operating under the new business name with the same EIN number. You do not need to do anything additionally since a sole means that the business is still legally attached to you so everything that happens with the business falls under your name and social security number. Basically, all you need to do contact to Internal Revenue Service (IRS) and they will make the changes in the system for you, send you the letter showing that the name has been changed but the EIN number will remain the same.

However, if you change your business from sole proprietorship to an LLC, you have to get a new EIN number since it becomes a new legal entity as the sole proprietorship is not considered a legal entity, only LLC and corporations are considered as legal entity. Similarly, in the case of dissolving your corporation, you would have to need to apply for a sole proprietor tax ID number for the new entity.

If you have any questions or need more information about the EIN number, let us help you!

When Do You Need a New EIN?

You will need an EIN usually for these:

*Changing Entity

*Bankruptcy

*Having a new charter as a corporation

For further questions about how to apply for an EIN, please do not hesitate to contact us!