Introduction
If you’ve started as a sole proprietorship and decided to switch to a Limited Liability Company (LLC), you might be asking:
“Can I change my EIN from sole proprietorship to LLC?”
The answer depends on how the IRS classifies the change—and in most cases, you will need to apply for a new EIN.
What Is an EIN?
An Employer Identification Number (EIN) is a unique number issued by the IRS to identify your business for tax purposes. Sole proprietors often obtain an EIN to open a bank account or hire employees, even though it’s not required.
When You Need a New EIN
The IRS generally requires a new EIN when there is a change in the legal structure of your business. So, when you go from a sole proprietorship to an LLC, this is seen as a new legal entity—even if ownership hasn’t changed.
You need a new EIN if:
- You formed an LLC (even if it’s a single-member LLC)
- Your LLC has more than one owner
- You elected to have your LLC taxed as a corporation
How to Get a New EIN for Your LLC
- Form Your LLC in your state.
- Visit the IRS EIN Assistant online.
- Complete the application as an LLC (not a sole proprietorship).
- Receive your new EIN immediately online.
What to Do with Your Old EIN
You cannot “cancel” an EIN, but you should close the account with the IRS for the sole proprietorship. This is done by sending a letter to the IRS with your old EIN and stating that the business has changed structure.
Final Thoughts
Can I change my EIN from sole proprietorship to LLC?
No, the IRS does not allow you to change the EIN—you must apply for a new one when you transition to an LLC. Doing so ensures you’re compliant with IRS regulations and ready to operate under your new legal structure.
