Do I Need a New EIN Number?

If you already have the employer’s ID number (EIN) for your business but have recently made some changes, you may be wondering, ‘Do I need a new EIN?’ Depending on the nature of the business and the circumstances, the IRS may require you to apply for a new state tax ID number.What-is-an-EIN-and-How-to-do-I-Get-One

So, In today’s post, I will break down the different situations where you need to apply for a new EIN, and, include situations where you do not need to.

When do you need a new EIN number?


A new EIN is needed if any of the subsequent comments are correct:

  • A new organization is formed with the Secretary of State.
  • A business is a subsidiary company that uses the parent EIN, or the organization becomes a subsidiary company.
  • The business turns into a single partnership or ownership.
  • A new organization is created after the formal merger.

A new EIN is not directed beneath the subsequent events:

  • The surviving company uses the existing EIN after the business merger.
  • The company announces its demise.
  • The name of the business or place changes.
  • The company prefers to be taxed as an S corporation.
  • Limited Liability Companies (LLCs)

A new EIN must be obtained if:

The company is filing state documents for conversion to LLC and will use the corporate tax deduction. In this case, the company is considered closed.

The IRS does not require the LLC to apply for a new EIN number in the following cases:

The organization submits the state paperwork for conversion to LLC and will opt for Form 8832 for tax as an organization.
The number of members in the LLC changes from more than one member to one member (i.e., it changes from a multi-member LLC to a single-member LLC).
The number of members in the LLC changes from one member to more than one member (i.e., it changes from a single-member LLC to a multi-member LLC).
One owner fills in the paperwork to become a government-recognized organization, organizes it as an LLC, and submits a Form 2553 or Form 8832 to be appointed as a non-profit organization or to be taxed as an organization or small business.

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If any of the following statements are true, the IRS will require business owners to obtain a new EIN:

Partners cover business.
One of the partners takes the partnership and acts as the sole owner of the land.
Partners break up partnerships and start new ones.

A new EIN is not needed to get a new EIN if any of the next words are true:

  • Cooperation declares collapse.
  • Partnerships change your name.
  • The partnership changes its location or adds other areas.
  • A new partnership is being formed due to the termination of the partnership.
  • Fifty per cent or more of corporate ownership (measured by financial and profit interest) changes hands over a period of twelve months.
  • Sole Proprietors

IRS requires a new EIN if any of the following statements are true:

  • One owner is subject to eviction proceedings.
  • One owner owns a business.
  • The business owner takes the partners and works as a partner.
  • The business owner buys or inherits the existing business and will act as the sole proprietor.
  • A new EIN has not required if any of the following statements are true:

So, One owner changes the name of the business. A business changes its location or adds new locations. One owner works for many businesses.

How to cancel an EIN

Also, Businesses will no longer use their existing EIN after requesting a new one in one of the above situations. Generally, it would mean that the tax account associated with that EIN should be closed. Business owners should discuss this with their accountant or tax adviser. In general, a letter to the IRS explaining the reason for closing the EIN-associated account will suffice.

How to apply for an EIN

Although it is easy to apply for a new EIN with IRS Form SS-4 (“Employer Identification Number Request”). So, You can save time and feel more secure by asking CorpNet to submit your EIN application. So, the Source of data is formed here.

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