Many business owners ask, “Can you transfer an EIN to a new owner?” The simple answer is no — the IRS does not allow an EIN (Employer Identification Number) to be transferred to a new owner in most cases. An EIN is tied to the business entity, not the individual owner.
When Is a New EIN Required?
Whether a new owner needs to obtain a new EIN depends on the type of business structure and the nature of the ownership change.
You Must Get a New EIN If:
- A sole proprietorship is sold to another person
- A partnership is taken over by a single partner or converted into a corporation
- A business changes its legal structure (e.g., sole prop to LLC)
- A corporation’s charter is revoked and it starts over
You May Keep the Same EIN If:
- You only change the business name
- You change the location or add members (in certain LLC cases)
- There is a change in ownership within the same business structure, such as shares sold in a corporation
Why Can’t You Transfer an EIN?
The EIN is assigned to the original business entity and is used to track tax responsibilities. When ownership or the business structure changes, the IRS views it as a new entity, requiring a new EIN for proper reporting.
How to Apply for a New EIN
If you’re required to get a new EIN, you can apply:
- Online at IRS.gov
- By fax or mail using Form SS-4
- Through a third-party filing service like FormLLC.us
Conclusion
So, can you transfer an EIN to a new owner? In general, no — the IRS requires a new EIN when a business changes ownership or structure. Always review your situation carefully and consult a tax professional or visit FormLLC.us for EIN support and business formation guidance.
