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Do You Need to Renew Your EIN Yearly?

Do you need to renew your EIN yearly?

It has such a simple answer: No. However, when your business changes hands or restructures, or changes its name, address, type and some changes like these, you are in need to submit a new tax ID application.

Mostly every business types need EIN, at least it is better to have it for companies. The list of the kinds of business that need to have an EIN is as follows:

-Church-controlled organizations

-Partnerships

-Estates of deceased individuals

-Corporations

-S-corporations

-Trusts

-Personal service corporations

For a sole proprietorship, it’s a little different. Most don’t need to have an EIN because they can use a social security number. An SSN can serve for most jobs the way that the EIN does. When you have an SSN, you can inherit or buy an existing business, enroll in individual retirement plans, hire employees, and file for bankruptcy. Nonetheless, it is better to have an EIN even for sole proprietorships.

On the other hand, to change your business type when you are a sole proprietorship, (for example, if you are a sole proprietorship and want to be a partnership) in this case, you need to get an EIN. Otherwise, you cannot make the changes you want.

 

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