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Do You Need a New EIN?


   

Generally, businesses need a new EIN when their ownership or structure has changed. The information below provides answers to frequently asked questions about changing your EIN.

Sole Proprietors

You will be required to obtain a new EIN if the following statements are true.

  • You are subject to a bankruptcy proceeding.
  • You incorporate.
  • You take in partners and operate as a partnership.
  • You purchase or inherit an existing business that you operate as a sole proprietorship.

To apply, refer to "How to Apply for an EIN."

You will not be required to obtain a new EIN if the following statements are true.

  • You change the name of your business.
  • You change your location and add other locations.
  • You operate multiple businesses.

Corporations

You will be required to obtain a new EIN if the following statements are true.

  • A corporation receives a new charter from the secretary of state.
  • You are a subsidiary of a corporation using the parent's EIN or you become a subsidiary of a corporation.
  • You change to a partnership or a sole proprietorship.
  • A new corporation is created after a statutory merger.

To apply, refer to "How to Apply for an EIN."

You will not be required to obtain a new EIN if the following statements are true.

  • You are a division of a corporation.
  • The surviving corporation uses the existing EIN after a corporate merger.
  • A corporation declares bankruptcy.
  • The corporate name or location changes.
  • A corporation chooses to be taxed as an S corporation.
  • Reorganization of a corporation changes only the identity or place.

Partnerships

You will be required to obtain a new EIN if the following statements are true.

  • You incorporate.
  • Your partnership is taken over by one of the partners and is operated as a sole proprietorship.
  • You end an old partnership and begin a new one.
  • 50 percent or more of the ownership (measured by interests in capital and profits) changes hands within a 12 month period.

To apply, refer to "How to Apply for an EIN."

You will not be required to obtain a new EIN if the following statements are true.

  • The partnership declares bankruptcy.
  • The partnership name changes.
  • You change the location of the partnership or add other locations.

Estates

You will be required to obtain a new EIN if the following statements are true.

  • A trust is created with funds from the estate (not simply a continuation of the estate).
  • You represent an estate that operates a business after the owner's death.

To apply, refer to "How to Apply for an EIN."

You will not be required to obtain a new EIN if the following statement is true.

  • The administrator, personal representative, or executor changes his/her name or address.

Trusts

You will be required to obtain a new EIN if the following statements are true.

  • One person is the grantor/maker of many trusts
  • A trust changes to an estate
  • A living or intervivos trust changes to a testamentary trust
  • A living trust terminates by distributing its property to a residual trust

To apply, refer to "How to Apply for an EIN ."

You will not be required to obtain a new EIN if the following statements are true.

  • The trustee changes.
  • The grantor or beneficiary changes his/her name or address.

Additional Resources

Information courtesy of the Internal Revenue Service

 

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