EIN Transferability and Updates
EINs are not transferable from one business owner to another. If your business converts to a different entity type, takes on a new business partner, incorporates your sole proprietorship, or your LLC elects to be taxed as a corporation, a new EIN is required. To update your EIN information, you should file Form 8822-B if your business address or your responsible party changes.
EINs do not expire. Once issued, an EIN is permanent and will not be reused or reassigned. If unsure, you can call the IRS at 800-829-4933 to check if your EIN is still active.
Changing EIN Information
- EIN Confirmation: Your EIN confirmation letter can prove ownership of your LLC.
- Partnerships: All partnerships are required to obtain only one EIN, despite the number of owners.
- Form 8822-B Use: Use this form to notify the IRS of any changes to your business details, such as mailing address or responsible party. Remember, the EIN Responsible Party must be a person, not another company.
Legal Entity Changes
When changing from a sole proprietorship to an LLC, or a partnership to an LLC, you are required to obtain a new EIN because the LLC is considered a separate legal entity.
For sole proprietors, the IRS allows the use of their social security number in place of an EIN for tax filing if they do not have one.
Misuse and Privacy of EINs
- Protection: If you suspect fraudulent use of your Social Security number, contact the SSA.
- Privacy: While your EIN isn’t entirely private and is used for tax-related activities, it is not advisable to share it unnecessarily.
Business Name Changes
If you need to change your business name, you generally do not need a new EIN. You can submit an EIN name change instead. Non-U.S. citizens without an SSN can still obtain an EIN for their businesses.
EIN Usage and Application
EINs, sometimes referred to as federal tax identification numbers, can be obtained by different types of entities and may appear on invoices. If you have created an LLC and are applying for an EIN, you do not need to add the DBA name to EIN documentation for the IRS immediately; it can be updated later if necessary.