Any company’s growth and development could be significantly impacted by changing its name. However, one of the most frequent inquiries from business owners when thinking about a name change is whether they may preserve their current EIN. Yes, you are able to modify your company name while maintaining your EIN. This is so that the business entity, not the name, gets given the EIN.
You must notify the Internal Revenue Service (IRS) of your new name in order to alter your business name. You can do this by submitting Form SS-4 (Application for Employer Identification Number) to the IRS or writing them a letter. The new business name, your present EIN, and any other pertinent firm details must be provided. You can start using your new name as soon as the IRS grants your request.
Although changing your company name might seem like a straightforward procedure, it’s vital to remember that operating as an LLC has a number of drawbacks. The personal liability that comes with running a business is one of the biggest drawbacks. In an LLC, the company is a separate legal entity, but the owners are still liable for any debts or other matters that may come up in court. This implies that the owners’ personal assets may be at danger if the company is sued or owes money.
An LLC, however, may be advantageous in terms of taxes. Since LLCs are regarded as pass-through organizations, the business’s gains and losses are transferred to the owners’ individual tax returns. Taxes for the company and its owners may be reduced as a result of this. It’s crucial to remember that an LLC’s tax advantages can differ based on the state in which the company is registered.
The price to establish an LLC in Texas varies depending on a number of elements, such as the kind of business and the services required. Texas charges $300 as the filing fee for an LLC. However, for some small firms, this fee might be lowered to $50. The creation of an LLC could also incur additional expenses including legal fees and yearly franchise taxes.
Unless specifically mentioned in the operating agreement, an LLC’s life span in Texas is permanent. Accordingly, the LLC won’t be liquidated or merged with another firm until it ceases to exist. However, it’s crucial to remember that in order to keep their position as a functioning corporate entity, Texas LLCs must submit yearly reports and pay franchise taxes.
In conclusion, it is feasible to change your company name while maintaining the same EIN, but it’s necessary to take into account the various drawbacks of conducting business as an LLC. Although an LLC can provide limited liability protection and tax benefits, it’s important to comprehend the fees and procedures related to establishing and operating an LLC in Texas.