When you are running a small business, things can move and change very quickly. Some things you can change without any effect on your Employer Identification Number (EIN), but some things require an update. Not sure if you need to update your EIN? Here are some tips to help you out:
Change in contact information – If your business has a change in responsible party, contact information, or address, you have 60 days to notify the IRS by filing Form 8822-B, Change of Address, or Responsible Party – Business. Businesses, like individuals, are targets of identity theft and fraud. Keeping your information updated will help in protecting your business.
Business name change – If your business name has changed, you will need to be sure to update your information by sending a Business Name Change request. Be sure to request an acknowledgment of the name change to keep for your records.
Change in business structure – If your business structure changes, then you may need a new EIN. For instance, if you are a sole proprietor, and you incorporate your business or take on partners forming a partnership, you will need to apply for a new Employer Identification Number.
If you close your business, you cannot cancel your EIN. However, if you open a new business, then you would need a new EIN for that business. Knowing when to update, how to update, and where to update your business information can be time-consuming, not to mention confusing. IOOGO has helped many businesses stay compliant with the IRS requirements to update information. Whether you know you need to update your EIN or you are not sure, our accounting team is here to help. Contact us today!