Changing Your Business or Getting Out of Business

Changing Your Business Structure

Changes in Organization or Ownership. If you already have an Employer Identification Number (EIN), you may need to get a new one if either the organization or ownership of your business changes. If you incorporate a sole proprietorship or form a partnership, you must get a new EIN. However, do not apply for a new EIN if:

• You change only the name of your business.
  
• You elected on Form 8832, Entity Classification Election, to change the way the entity is taxed.
  
• A partnership or corporation declares bankruptcy.
• A Corporation chooses to be taxed as an S Corporation.
• You changed the location or added locations.

The above list is not all inclusive, to find out when you should not aply for a new EIN, refer to Employer Identification Numbers (EIN) - Do you need a new EIN.

If you are electing to be an S corporation, be sure to file Form 2553, Election by a Small Business Corporation.

Important References

Form SS-4                    Application for Employer Identification Number
Instructions for Form SS-4
Form 2553                    Election by a Small Business Corporation
Instructions for Form 2553
Form 8832                    Entity Classification Election
Publication 1635          Understanding Your EIN