When a business decides to change its name, it typically does so in order to rebrand or change its emphasis. However, businesses may occasionally decide to go back to using their former name for a variety of reasons. But after changing its name, can a business still use its former name? Yes, but it might not be as easy as you believe to understand.
First and foremost, it’s crucial to comprehend the legal ramifications of a company name change. All legal documents, contracts, and agreements must be updated when a business changes its name to reflect the new name. The business must also inform any state agencies and the IRS of the name change. Once the new name has been adopted, the previous one is no longer recognized by law, and the business is no longer permitted to use it.
Companies do, however, have considerable discretion when it comes to formally employing a dated name. For instance, a business may continue to use its previous name in marketing materials or on social media as long as it is very obvious that the name has been changed officially. As long as it’s not done in a way that could mislead or confuse customers, it’s also acceptable to utilize an outdated name in a tagline or slogan. It is feasible for a business to formally utilize its previous name, but doing so necessitates going through the formal name-change procedure once more. This entails completing the required documentation and paying any applicable costs. It’s important to keep in mind that, depending on the state and the workload of the pertinent agencies, this process could take several weeks or even months to complete.
Companies must modify their EIN (Employer Identification Number) in order to notify the IRS of a change in their company name. You can do this by filling out Form SS-4 and sending it to the IRS. Although the processing time for this form can vary, it usually takes four weeks.
The simplest approach to get in touch with the IRS regarding a business name change is by calling their Business and Specialty Tax Line at 1-800-829-4933. From 7 a.m. to 7 p.m. local time, Monday through Friday, this line is open.
The primary distinction between LLCs and single-member LLCs is how they are taxed. While an LLC can elect to be taxed as a partnership or corporation, a single-member LLC is subject to sole proprietorship taxes. Even if they didn’t produce any money during the tax year, LLCs and single-member LLCs must still file taxes.
In conclusion, even though it’s conceivable for a business to continue using an old name after a name change, it’s crucial to comprehend the legal ramifications. Companies are required to alter the name on all legal paperwork and inform the appropriate authorities. A business must follow the legal procedure to legally change its name back if it wants to utilize its previous name on an official basis. Finally, it’s critical to remember that both LLCs and single-member LLCs must file taxes and that the IRS must be notified of any changes to the business name.
You must get in touch with the IRS and give them the essential information for them to make the adjustment if you wish to have your name removed from an EIN (Employer Identification Number). This can entail delivering a written request together with supporting materials, including ownership proof or a legal name change. It’s crucial to understand that changing the name on an EIN does not result in the number’s cancellation, and you are still liable for any related taxes or filings.