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
• 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
• You elect to be taxed as an S corporation.

The above list is not all-inclusive. To find out when you should not apply for a new EIN, refer to Employer Identification Numbers (EIN) - Do You Need a New EIN?

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

Gustavo A. Viera, CPA