The Internal Revenue Service (IRS) issues an Employer Identification Number (EIN), a special nine-digit number, to identify a company organization for tax reasons. It is essentially a commercial version of a Social Security number. The ability to have two EIN numbers is a popular query from business owners. The quick response is no. Each company organization is only given one EIN by the IRS.
But there are several circumstances in which a company could have to apply for a new EIN. For instance, a sole proprietorship will need to apply for a new EIN if it merges or turns into a partnership. A business must also apply for a new EIN if its legal structure changes, such as going from an LLC to a corporation. To minimize misunderstanding, the company should in these situations utilize the same name and address as on their first EIN application.
By submitting Form 8822-B, Change of Address or Responsible Party – Business, you can update your LLC’s information with the IRS, such as the business name or address. You can mail in this form or submit it online through the IRS website. Include your current EIN as well as any updated information that needs to be included.
As long as you continue to use the same EIN, a name change for your company won’t have an impact on your tax return. To use the new EIN on your tax return, you must apply for a new EIN if your name has changed. It’s crucial to remember that if you change your company name, the IRS will not immediately update your EIN. They must be informed separately. How long does it take the IRS to process a change in a business name?
A business name change with the IRS may take a while to process. The IRS typically requires four to six weeks to update its records with the new name. If there are mistakes or missing data on the application, it can take longer. When preparing for company changes, it’s crucial to keep this schedule in mind. How Can I Talk to the IRS About Changing My Business Name?
Call the IRS at 1-800-829-4933 if you need help changing your business name or have any questions. This hotline is designated only for businesses and can offer instructions on the procedure. Visit the IRS website for additional resources and information.
In conclusion, even though a company is not allowed to have two EINs, there are several circumstances in which a second EIN may be required. You can file Form 8822-B with the IRS if you need to make changes to your LLC. As long as you use the same EIN, a name change has no impact on your tax return. A business name change with the IRS might take four to six weeks to process. You can call the IRS at 1-800-829-4933 if you have any queries or need assistance.