It may be important for your company to change its name as it expands. It can, however, be a difficult undertaking, particularly when it comes to informing the Internal Revenue Service (IRS). It depends on the circumstances as to how long it takes to alter your business name with the IRS. Depending on the kind of corporate entity you have, the process could take a few days to a few weeks.
If your company is a sole proprietorship, you can alter your company name without submitting any paperwork to the IRS. Simply begin using your new name, and make the necessary updates to your state and local government documents. However, you will need to submit a name change with the IRS if you have an LLC or other kind of company entity.
By filing Form SS-4, the IRS’s application for an Employer Identification Number (EIN), you can change your company’s name. Both your old name and your new name are required on this form. Your new EIN will be provided to you once the IRS has approved your name change. Depending on the IRS’s workload, this process may take a few days to several weeks.
It’s crucial to weigh the advantages and disadvantages of both an LLC and a sole proprietorship when deciding which business structure to choose. A sole proprietorship is simpler and less expensive to start up, but you assume all risk for any debts or legal actions brought against your company. However, setting up an LLC involves additional paperwork and costs and offers less security for your personal assets.
It may be tempting to often alter the name of your company, but it’s crucial to think about the potential consequences. If you change your name too frequently, it may be difficult for customers to locate you online or in directories. Additionally, it may harm your brand’s reputation and search engine rankings. Instead, concentrate on creating a powerful brand with a memorable name.
In conclusion, depending on your business entity, it may take a few days to several weeks to change your business name with the IRS. The IRS doesn’t need any documentation to be filed by sole proprietorships. However, you must use Form SS-4 to submit a name change to the IRS if your company is an LLC or another kind of business entity. Even while it could be alluring to rename your company regularly, it’s crucial to weigh the pros and negatives and concentrate on creating a strong brand with a name that will endure the test of time.
A business must submit Form 8822-B to the IRS when changing its name. Any changes to the company’s mailing address, legal name, or responsible party must be reported to the IRS using this form. The company’s tax returns and other significant documents will reflect the new name once the form has been processed and the name change has been corrected in the IRS records. To prevent misunderstanding or delays with their tax returns, it is crucial for businesses to alter their name with the IRS.