Restructuring Your Business? Part Four

In the first three 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 what changes would require a new EIN if you operate your business as a Sole Proprietor or a Corporation. 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 operate your business as a Partnership.

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

• You incorporate.
• Your partnership is taken over by one of the partners and is operated as a sole proprietorship.
• You end an old partnership and begin a new one.

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.

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.

Restructuring Your Business? Part Two

In the first part 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). 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 Sole Proprietor, you will need to file for a new EIN if any of the following relate to your business restructuring changes:

• You are subject to a bankruptcy proceeding.
• You incorporate.
• You take in partners and operate as a partnership.
• You purchase or inherit an existing business that you operate as a sole proprietorship.

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 tie and money trying to correct the problem later. Next week we will look at Corporations and what restructuring aspects can affect your business.

Restructuring Your Business? Part One

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.