Establishing a business requires getting an employment identification number, or EIN, for tax purposes. However, after receiving this tax ID, your job isn’t done. Whenever your business experiences certain changes, you must also change your tax ID. How do you do this when an EIN has already been assigned to you?
Reasons for Changing Your IRS-EIN-Tax-ID
Not every business change affects your EIN, only specific actions that depend on the formation of your business. Examples include:
- Going through bankruptcy under a sole proprietorship
- Switching to a different business structure or owner
- Becoming the subsidiary of another corporation
- Paying for employment taxes under the name of your LLC after originally doing so under your name
- Representing a decedent’s estate that includes a business
- Changing a trust from one type to another or to an estate
Changes to name or location and corrections of mistakes do not require a new tax ID, though you still need to notify the IRS of the information by sending a letter on your company letterhead. You can visit the IRS website for full guidelines on how to determine if the circumstances warrant an EIN change.
How to Change Your EIN After Assignment
Once you are sure you need to change your EIN, all you need to do is apply for a completely new number with the IRS. You can’t have two numbers for the same business, so the IRS treats the change as if you’ve created a new business instead, thus the requirement for a new EIN.
The application process is the same as you used the first time. You can do get your new tax ID directly through the IRS, but a quicker and simpler way is to use IRS EIN Tax ID Filing Service instead. This service also allows you to check your application status or verify the EIN number upon completion, and offers EIN number lookup on other businesses as well. Contact the company to get started on applying for your new tax ID.
