Can You Change Your EIN Number?

The Employer Identification Number (EIN) is one of the many requirements to fulfill when launching a new venture. Think of it as your business’s Social Security number.

Issued by the Internal Revenue Service (IRS), this unique nine-digit code is primarily used to identify businesses when conducting tax-related transactions, such as filing taxes, opening a business bank account, and hiring employees.

But what if something changes in your business? Can you change your EIN number? If so, under what circumstances can you apply for a new EIN?

Find out below.

Can You Change Your EIN Number?

Truthfully, you cannot change your EIN number. Much like your Social Security number, it’s designed to be a permanent identifier.

However, the IRS does allow you to make corrections or update the information associated with your EIN. Examples of this include changing your business name or address. 

You also have the option to get an entirely new EIN if needed.

Do I Need A New EIN?

According to the IRS, you may need to get a new EIN if the following situations occur:

You change your business structure.

If your business was established as a sole proprietorship and you decide to incorporate it as a limited liability company (LLC) or a corporation, you must get a new EIN.

You file for bankruptcy.

You may need a new EIN when you file for bankruptcy because bankruptcy can significantly alter your business’s structure and operations.

There’s a change in ownership.

Changes in your business’s ownership, especially if structured as an LLC or a corporation, will trigger the need for a new EIN. One example is if you transfer or sell your controlling interest to another LLC member.

You want to dissolve your business and start a new one.

If you want to dissolve your existing business and start a new venture, you must close your existing EIN and apply for a new one.

You acquire a new business.

Whether you acquire a new business through inheritance or a merger, you must obtain a new EIN to ensure its business records are properly aligned under your ownership.

Your business becomes a subsidiary of a corporation.

You must obtain a new EIN if another corporation acquires your business and designates it as a subsidiary.

You don’t need a new EIN if your business changes its name or primary address or expands its operations to another state.

How to Obtain A New EIN

To obtain a new EIN, you must first close your existing number. This can be done by submitting a letter to the IRS that explains why you want to close your account, including your business’s legal name, existing EIN, and principal business address. Once the IRS has processed your request, you can apply for a new EIN via their website.

If you still have a copy of your first EIN Assignment Notice, the IRS recommends that you include it in your letter when you submit it at:

Internal Revenue Service

MS 6055

Kansas City, MO 64108

or

Internal Revenue Service

MS 6273

Ogden, UT 84201

It’s important to note that you must pay any liabilities you have left before you close your original EIN. You must also ensure that your letter is signed by you or another authorized representative of your business.

For exempt organizations, they must submit their request letter to the address below:

Internal Revenue Services

Attn: EO Entity

Mail Stop 6273

Ogden, UT 84201

Once the IRS has processed your request, you can apply for a new EIN via the IRS website.

How to Update Your EIN

You don’t need a new EIN if you change your business’s name or address. You must notify the IRS by submitting a letter or filing a Change of Address for EIN using Form 8822-B.

Your letter should include your business’s new name, its existing EIN, and the date the name change took effect. You should also include any supporting documentation, like a copy of your new business license.

This process applies to businesses that have filed their tax returns for the current year using their old name.

If your corporation or partnership has yet to file its return, mark the name change box on your Form 1120 or Form 1065, whichever form applies to your structure.  

What if I Lost My EIN?

What should you do if you lost or misplaced your EIN? You can contact your bank or a licensing agency that has issued your business a permit to determine if they have your EIN on file.

You can also check your previous filings to find your EIN.

If all else fails, there’s no need to worry. The IRS has a toll-free number to request a replacement EIN: 800-829-4933.

The authorized person will first ask you questions to verify your identity and ownership of the business. Once they confirm your information, they will give you your EIN. If you have your original EIN assignment notice on file, we recommend you mention it during the call to expedite the process.

Remember, your business’s EIN is crucial to its operations. You must store it in a safe place where you can easily access it.

Conclusion

In conclusion, your business’s EIN is vital to its identity. While it’s designed to be a permanent identifier, there are situations where you may need to update your EIN or even obtain a new one.

By taking the time to understand the rules and procedures for obtaining and updating new EINs, you can ensure that your business operates smoothly and legally.

If you need help updating or closing your old EIN, Inc. Authority is here to assist you!

Inc. Authority offers free LLC formation assistance to business owners nationwide. Our team of business formation experts will assist you, whether you need to notify the IRS about a new name or get a new EIN, free of charge.

We understand how expensive formation can be, so we worked hard to make our services free. When you work with us, we’ll waive our service fees and overhead charges so that you only have to worry about your state’s filing fees.

Visit our website here to learn more.