Situations That REQUIRE a New EIN
1. You Change Your Business Structure
A new EIN is required when your legal entity type changes, such as:
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Sole proprietorship → LLC or corporation
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Partnership → corporation
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LLC taxed as a sole proprietor → corporation
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Corporation → partnership
Reason: The IRS considers the new structure a new tax entity.
2. You Incorporate a Business
If you previously operated as:
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A sole proprietor, or
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A partnership
and then incorporate, you must obtain a new EIN for the corporation.
3. A Partnership Ends and a New One Begins
A new EIN is required if:
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A partnership terminates
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One partner buys out the others
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A new partnership is formed with different ownership
4. You Purchase or Inherit an Existing Business
You must apply for a new EIN if:
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You buy a business and do not operate it as the same legal entity
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You inherit a business and restructure ownership
The EIN does not transfer to the new owner.
5. You Start a Trust or Estate
Each trust or estate requires its own EIN, even if it’s connected to an existing business or individual.
6. A Single-Member LLC Elects Corporate Taxation
If a single-member LLC elects to be taxed as:
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A C corporation, or
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An S corporation
A new EIN is required for IRS filing purposes.
7. Bankruptcy Estates
A business bankruptcy estate (Chapter 7 or 11) must obtain a new EIN, separate from the business owner’s EIN or SSN.
Situations That Do NOT Require a New EIN
You typically do NOT need a new EIN if:
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You change your business name
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You change your business address
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You add a new location
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You hire employees for the first time
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Ownership changes within the same LLC or corporation
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A single-member LLC adds members and becomes a partnership (in some cases—IRS notification required)
EIN Changes by Business Type (Quick Reference)
| Business Type | New EIN Required? |
|---|---|
| Sole Proprietor → LLC | Yes |
| LLC → Corporation | Yes |
| Partnership with same partners | No |
| Corporation name change | No |
| Owner changes (same entity) | No |
| New trust or estate | Yes |
Common Mistakes to Avoid
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Continuing to use an old EIN after incorporating
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Using a seller’s EIN after buying a business
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Applying for multiple EINs unnecessarily
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Failing to notify the IRS of changes that don’t require a new EIN
How to Apply for a New EIN
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Apply directly through the https://www.einregister.online/
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Approval is often immediate online
Final Thoughts
You must apply for a new EIN whenever the IRS considers your business a new tax entity. If you’re unsure, it’s best to confirm before filing taxes, opening bank accounts, or issuing payroll.