Reusing EIN for Business Changes
- IRS Rules for EIN Reuse
- Reusing EIN for Different Structures
Determine whether you can reuse your old EIN for a new business. Generally, businesses need a new EIN when their ownership or structure changes. You cannot use the same EIN for different entity types or unrelated businesses.
For partnerships, you can reuse an EIN if you change the name or location. You can also reuse an EIN if you terminate an old partnership and form a new one to continue the business. However, if you change structure to a sole proprietorship or corporation, apply for a new EIN.
For LLCs, you can reuse an EIN if you only change the LLC name or location. You can also reuse an EIN if you terminate an old LLC and form a new one to continue the business. However, if you change structure to a sole proprietorship or corporation, apply for a new EIN. An exception is a single member LLC taxed as a sole proprietorship, which can use the sole proprietor’s EIN.
Multiple Businesses and EIN
Can you use the same EIN number for a different business?
If you have multiple businesses and they are not established as legally separate entities, you can use the same EIN for all of them, even if they have different trade names or “DBA” names.
One LLC can have multiple businesses under it. However, if two companies share an EIN, then both companies are liable if one of the two is sued.
Transferring EIN to New Business
Can you transfer an EIN to a new business?
To transfer EIN to a new owner isn’t possible. Most companies will have the same EIN for as long as they’re in operation.
If you decide to sell your business, you might wonder if you can transfer your company’s EIN to a new owner. The simple answer is no. One of the most important steps a new business owner does is obtaining an EIN, or tax ID number.