As a business owner, you can come across a circumstance where you need to rename your company. This can be the result of rebranding, mergers, or other factors that are private. However, altering your company name may also have an impact on your Employer Identification Number (EIN), a special number that the Internal Revenue Service (IRS) has given to your company. So, is it possible to alter your EIN business name?
No, is the response. The name connected to your EIN is immutable. Because the EIN is connected to your business entity, you will need to file for a new EIN if you alter your business name. The IRS utilizes the EIN to keep track of your business activities and tax obligations, so knowing this is crucial. Therefore, it’s imperative to check that your EIN is current and accurate.
So, how do you update your EIN details? Form SS-4, which is accessible on the IRS website, can be used to amend your EIN information, such as your business address, responsible party, or organizational structure. These adjustments can also be made by fax or postal mail. It’s significant to understand that your EIN cannot be changed online.
You must submit Form 8822-B if you are a single-member LLC and need to update your company name with the IRS. To inform the IRS of a change in the responsible person or company address, use this form. However, you will need to register for a new EIN if your company structure has changed, such as when you changed your LLC to a corporation or partnership.
Let’s now discuss which is preferable: an LLC or a single proprietorship. Your company’s demands and objectives will determine the answer. The simplest and most typical type of business structure is a sole proprietorship. There are no formal criteria, and it is simple to set up and manage. However, as a sole proprietor, you are held personally responsible for your company’s debts and liabilities.
An LLC, on the other hand, is a distinct legal entity that has the ability to possess assets, enter into contracts, and bring or receive legal action. The owner’s personal assets are better protected as a result. An LLC can also have more than one owner, but a sole proprietorship can only have one owner.
Lastly, is it possible to use one EIN for several LLCs? No, is the response. Since each LLC is regarded as a distinct entity, each one needs its own EIN. However, you can use a single EIN for all of your LLCs if they are owned by the same corporation and you have several of them.
In conclusion, altering your business name may have an influence on your EIN; if this happens, you will need to file for a new EIN. On the other hand, you can amend your EIN details by completing Form SS-4. Additionally, to alter your business name with the IRS if you are a single-member LLC, you must submit Form 8822-B. It’s crucial to take your business needs and goals into account while deciding between an LLC and a sole proprietorship. In addition, each LLC needs its own EIN; however, if several LLCs are controlled by the same organization, you can use the same EIN for all of them.