So your business is changing. Maybe you are undergoing a simple change in ownership. You may need a new Employer Identification Number (EIN). If you are looking to incorporate a sole proprietorship or form a partnership you MUST get a new EIN. However, if you only change the following aspects of your business you will not need a new EIN.- Simply change the name ONLY of your business.
- A partnership or corporation declares bankruptcy.
- A corporation chooses to be taxed as an S-Corporation.
- You changed locations or added locations.
- You elected on Form 8832 to change the way the entity is taxed.
Make sure you do your due diligence on this matter before you make any changes. Not filing for a new EIN if one is needed can lead to major complications later when filing your tax returns. In the second part of this article (next week) we will look at some of the specific changes in your business restructure that will require you to apply for a new EIN. If you find yourself in the situation where complications have come about for your business because you did not follow (or know about) the procedures you can get help from a certified tax resolution professional.
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