When You Must Get a New EIN
Some common business events that require a new EIN:
- If your business is subject to a bankruptcy proceeding
- If you change your type of business entity; for example, if you change from a sole proprietorship to a corporation. If a sole proprietorship takes in partners and begins to operate as a partnership, it must obtain a new EIN.
- If you buy a business that has been owned by someone else or if your business merges with another business.
- If you end an old partnership and begin a new one.
- If you (as a sole proprietor) purchase a new business, if your corporation becomes a subsidiary of another corporation, or if your partnership is taken over by one of the partners and operated as a sole proprietorship.
For more complete information on all the circumstances requiring a new EIN, see the IRS website for a listing.
When NOT to Apply for a New EIN
The IRS says you should NOT apply for a new EIN if:
- You change only the name of your business
- A partnership or corporation declares bankruptcy
- A corporation chooses to be taxed as an S corporation
- You elected on Form 8832 Entity Classification Election, to change the way the entity is taxed, or
- You change the location or add locations (use Form 8822 - Change of Address)
- You elect to be taxed as an S corporation.