Restructuring Your Business? Part Three

In the first two parts of this series we looked at some of the changes your business can go through without being required to file for a new Employer Identification Number (EIN). We also looked at some changes that would require you to file for a new EIN if you operate your business as a Sole Proprietorship. Now we will look at some changes that your business can go through that WILL require you to file for a new EIN if you are a Corporation.

If you are a Corporation, you will need to file for a new EIN if any of the following relate to your business restructuring changes:

• The corporation receives a new charter from the Secretary of State.
• You are a subsidiary of a corporation using the parent's EIN or you become a subsidiary of a corporation.
• You change to a partnership or a sole proprietorship.
• A new corporation is created after a statutory merger.

Make sure you are following the guidelines set forth by the IRS with regard to making sure your business changes don't interrupt your business. If you stay on top of this from the start it can save you a lot of time and money trying to correct the problem later. Next week we will look at Partnerships and what restructuring aspects can affect your business.