What Is an EIN?
An EIN is a nine-digit number issued by the IRS to identify a business for tax purposes. Think of it like a Social Security Number—but for your business. It’s used for:
- Filing taxes
- Opening business bank accounts
- Hiring employees
- Applying for licenses and permits
When You Do Not Need a New EIN
You usually don’t need a new EIN if:
- You change the business name only
- You move to a new location
- You add a new business line under the same structure
- You change ownership within a corporation that remains intact
When You Do Need a New EIN
You will need a new EIN in the following situations:
1. Changing Business Structure
Switching from one entity type to another often requires a new EIN:
- Sole proprietorship → LLC or corporation
- LLC → corporation (or vice versa)
- Partnership → LLC
2. New Ownership
If a business is sold or inherited and the legal structure changes, a new EIN may be necessary.
3. Incorporating or Reincorporating
If you incorporate (form an LLC or corporation) or reincorporate in a different state, the IRS may require a new EIN.
4. Bankruptcy (in some cases)
Filing for bankruptcy under a new legal entity may trigger the need for a new EIN.
How to Get a New EIN
Applying for a new EIN is free and fast. You can do it:
- Online through the IRS EIN Assistant
- By submitting Form SS-4
- Through services like FormLLC.us that simplify the EIN filing process
Conclusion
So, do I need a new EIN? That depends on your business changes. If you’re unsure, consult the IRS guidelines or a business filing expert.
For fast EIN registration or expert help, visit FormLLC.us today—we’ll guide you every step of the way.
