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Generally, businesses need a new Federal EIN number when their ownership or structure has changed. Examples of such change are as follows: If you are a Sole Proprietor you will be required to obtain a new Federal EIN Number if the following statements are true.
- You incorporate.
- You take in partners and operate as a partnership.
- You purchase or inherit an existing business that you operate as a sole proprietorship.
- You are subject to a bankruptcy proceeding.
You will NOT be required to obtain a new Federal EIN Number if the following statements are true.
- You change the name of your business.
- You change your location and add other locations.
- You operate multiple businesses.
If you are a Corporation you will be required to obtain a new Federal EIN Number if the following statements are true.
- A corporation receives a new charter from the secretary of state.
- You are a subsidiary of a corporation using the parent's Federal EIN Number or you become a subsidiary of a corporation.
- You change to a partnership or a sole proprietorship.
- A new corporation is created after a statutory merger.
You will NOT be required to obtain a new Federal EIN Number if the following statements are true.
- You are a division of a corporation.
- The surviving corporation uses the existing Federal EIN Number after a corporate merger.
- A corporation declares bankruptcy.
- The corporate name or location changes.
- A corporation chooses to be taxed as an S corporation.
- Reorganization of a corporation changes only the identity or place.
If you are a Partnership you will be required to obtain a new Federal EIN Number if the following statements are true.
- You incorporate.
- Your partnership is taken over by one of the partners and is operated as a sole proprietorship.
- You end an old partnership and begin a new one.
- 50 percent or more of the ownership (measured by interests in capital and profits) changes hands within a 12-month period.
You will NOT be required to obtain a new Federal EIN Number if the following statements are true.
- The partnership declares bankruptcy.
- The partnership name changes.
- You change the location of the partnership or add other locations.
If you are an Estate you will be required to obtain a new Federal EIN Number if the following statements are true.
- A trust is created with funds from the estate (not simply a continuation of the estate).
- You represent an estate that operates a business after the owner's death.
You will NOT be required to obtain a new Federal EIN Number if the following statement is true.
- The administrator, personal representative, or executor changes his/her name or address.
If you are a Trust you will be required to obtain a new Federal EIN Number if the following statements are true.
- One person is the grantor/maker of many trusts.
- A trust changes to an estate.
- A living or intervivos trust changes to a testamentary trust.
- A living trust terminates by distributing its property to a residual trust.
You will NOT be required to obtain a new Federal EIN Number if the following statements are true.
- The trustee changes.
- The grantor or beneficiary changes his/her name or address.
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