What happens when you change your business name or structure

Oct. 6, 2025, 5:51 a.m.
What happens when you change your business name or structure
EIN Business

1. If You Only Change Your Business Name

You usually don’t need a new EIN.

If the legal structure and ownership remain the same (for example, a sole proprietor or LLC just rebrands with a new name), you can keep your existing EIN.

What you must do instead:

  • Notify the IRS of the name change:

    • Sole Proprietor: Send a signed letter to your IRS office (where you file returns).

    • Corporation: Indicate the name change on your next tax return or write to the IRS.

    • Partnership or LLC: Note it on the tax return (Form 1065) or send a letter.

  • Update the name with:

    • State business registration office

    • Bank and vendors

    • IRS, SSA, and other agencies (if applicable)

Example:
“Maria’s Cupcakes” changes its name to “Maria’s Bakery & Café.”
→ Same owner, same EIN — just notify the IRS and update your business records.


2. If You Change Your Business Structure

This is where things get more complex.

Change Type Do You Need a New EIN? Explanation
Sole proprietor → LLC ✅ Yes A new legal entity is formed under state law.
Sole proprietor → Corporation ✅ Yes The business becomes a separate legal entity.
LLC → Corporation ✅ Yes Change in tax and legal structure.
Partnership → Corporation ✅ Yes Change in entity type triggers new EIN.
LLC (disregarded entity) adds a partner ✅ Yes Becomes a partnership under IRS rules.
Corporation → New corporation after merger ✅ Yes New entity created.
Corporation → Division of another corporation ❌ No Still the same legal entity.

 Rule of thumb:

If the ownership or legal structure changes, you need a new EIN.
If you only change the business name or location, you don’t.


3. Updating the IRS and Other Records

If you keep the same EIN but change your business name or structure, make sure to update:

  • IRS records (by letter or on your next return)

  • State tax agencies

  • Business licenses & permits

  • Banking information

  • Insurance policies

  • Employer/payroll accounts

  • Contracts and vendor agreements

Failing to update can lead to tax mismatches, payment delays, or compliance issues.


4. How to Notify the IRS

You can notify the IRS of a business name change by:

  • Mailing a signed letter (include EIN, old name, new name, and signature of owner/officer)

  • Or indicating it on your next tax return in the appropriate section.
    IRS instructions: IRS – Business Name Change Procedures


Summary Table

Situation Need New EIN? What To Do
Name change only ❌ No Notify IRS & update records
Ownership change ✅ Yes Apply for new EIN
Change in entity type (LLC → Corp, Sole Prop → LLC, etc.) ✅ Yes Apply for new EIN
Change in location only ❌ No Update IRS & state tax offices

Bottom Line

  • Name change: Keep your EIN — just notify the IRS.

  • Entity or ownership change: You’ll need a new EIN.

  • Always update your records across all agencies to stay compliant.