Changing EIN from Corporation to LLC: Everything You Need to Know

You might be unsure whether you require a new Employer Identification Number (EIN) if you intend to switch from a corporation to a limited liability company (LLC). Generally speaking, yes, although there are a few exceptions. In this article, we’ll go over how to update your EIN information and when you should apply for a new one. We’ll also respond to some other frequently asked concerns concerning EINs, such as how many EINs a sole proprietor can have, if an old EIN can be used for a new firm, and whether a sole proprietor should obtain an EIN. Should I Apply for a New EIN for My LLC?

Most of the time, when you change the organizational structure of your business, you will need to obtain a new EIN. Changing from a corporation to an LLC falls under this. This is so because, for tax purposes, the IRS views an LLC as a new entity. There are a few exceptions to this rule, though. You might be eligible to utilize the same EIN for both businesses if you are the sole owner of the LLC and the corporation. In a similar vein, if your business’s name is changing but not its organizational structure, you can maintain using the same EIN. How Do I Update the Information on My EIN? By submitting Form SS-4 to the IRS, you can update your EIN information, including your business name and address, if necessary. Call the IRS Business and Specialty Tax Line at 800-829-4933 to update your EIN information. When you contact, be prepared with your EIN and any other pertinent information.

You can operate more than one firm as a sole proprietor, but you only need one EIN. Getting a different EIN for each organization, however, may make it simpler to keep track of them if you operate several unconnected businesses. Is it Possible to Start a New Business with an Old EIN?

You must apply for a new EIN if your new company will have a different legal status from your existing one. You may use the same EIN, though, if the new company is a division or subsidiary of the existing one. Should a Sole Proprietor Apply for an EIN?

You are exempt from needing an EIN if you are a solo entrepreneur and do not employ anyone. Even if you don’t require one, getting an EIN has several advantages. For instance, having an EIN might make it simpler to create a business bank account and obtain credit for your company.

In conclusion, you will probably need to obtain a new EIN if you are switching your company’s legal structure from a corporation to an LLC. There are a few exceptions to this rule, though. If your EIN information needs to be updated, you can do it by calling the IRS Business and Specialty Tax Line or submitting Form SS-4. You can operate more than one firm as a sole proprietor, but you only need one EIN. You must apply for a new EIN if your new company will have a different legal status from your existing one. As a single proprietor, you are not needed to get an EIN, but getting one has some advantages.