Managing business paperwork may not be exciting, but it’s essential. One of the most important identifiers your business has is its Employer Identification Number (EIN). This number ties directly to your company’s tax obligations and official records.

If you need to change your business’s name, it’s not always obvious whether you need a new EIN or simply an EIN name change. Understanding the difference can help you save time and money and ensure compliance.

In this article, we’ll discuss when you need to simply update your company name on your EIN or when you need a new EIN altogether. We’ll also guide you through the steps for requesting an EIN name change online.

Understanding Your EIN: When to Update vs. Apply Again

Your EIN serves as your business’s tax ID number with the Internal Revenue Service (IRS). It works like your business’s Social Security number. This nine-digit number is used to file taxes, open a business bank account, and handle payroll.

While not every business needs one, most will need one if they hire staff, form a corporation or partnership, or apply for licenses. 

In certain cases, major changes to your business structure or ownership mean the IRS will treat it as a new entity, requiring you to apply for a new EIN.

Here’s how you identify when you need a new EIN and when you simply need to update it.

When You Don’t Need a New EIN

In most cases, changing your business name doesn’t require a new EIN. You can still use the same EIN for: 

  • A sole proprietorship rebrand under a new name
  • A partnership that keeps the same partners but adopts a new business name
  • A corporation name change, but keeps the same incorporation status
  • An LLC name change with the same LLC structure and members

In such cases, you can simply notify the IRS of the change. Processing an EIN name change online is straightforward when you meet these criteria. 

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When You Must Obtain a New EIN

Some changes are big enough that the IRS considers your business a new entity. In these cases, you can’t just process an EIN name change online. Instead, you must apply for a new EIN.

Need a New EIN

Business Structure Changes

All changes in business entity type automatically require a new EIN. Common scenarios include:

  • Sole Proprietorship to LLC
  • Partnership to Corporation 
  • LLC to Corporation 
  • C-Corp to S-Corp election

Ownership Changes

The following ownership changes require a new EIN:

  • Purchasing an existing business, even if you keep the same name and structure  
  • Adding or removing partners
  • Transferring ownership of corporate stock

Other Circumstances Requiring New EINs

Here are additional situations that require you to get a new EIN: 

  • Sole proprietors entering bankruptcy
  • Receiving a new corporate charter
  • Closing a business and starting a business with the same name

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How to Change an EIN Online for Different Entity Types

Updating your business name with the IRS depends on your business structure. Each entity has different requirements for processing an EIN name change online.

Sole Proprietorships

For sole proprietorships, you must send a signed written notification to the IRS. This document must include:

  • Your current business name and EIN 
  • The new business name 
  • The date of the name change
  • The reason for the change
  • The business owner’s signature

Mail this notification to the IRS processing center for your geographic area. You can find the address on the IRS website.

Corporations (S-Corp and C-Corp)

Corporations can report their name change on their annual tax return. C-Corporations use Form 1120 and scan for the name change box; S-Corporations use Form 1120-S.

If a change is required during filing (not during the next filing cycle), written notification is required for sole proprietorships.

Partnerships

Partnerships report name changes on Form 1065 during their annual tax filing. Like corporations, if you need to update the name between filing periods, submit a written notification to the IRS.

Limited Liability Companies (LLCs)

LLCs are treated similarly to their tax election. If your LLC has partnership taxation, you must follow partnership procedures. If you choose corporate taxation, you must follow corporate procedures.

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Step-by-Step Guide for Requesting a Name Change on Your EIN

After determining that you only need a name change, not a new EIN, follow these steps to request the update.

EIN Name Change Request

Step 1: Review Requirements for Your Business Type

Each entity type, whether it’s a sole proprietorship, partnership, corporation, or LLC, has its own rules for processing a name change with the IRS. Make sure you understand the specific requirements that apply to your business before submitting your request.

Step 2: Prepare Your Documentation

Before you request a name change on your EIN online, you should plan carefully. Having all the information you need on hand will speed up your application and prevent delays.

Gather the following information:

  • Current EIN 
  • Current legal business name 
  • New legal business name
  • Date of the name change 
  • Reason for the change

Step 3: Notify the IRS

Depending on your entity type, you can change your EIN name in the following ways: 

  • Include the change on your next tax return
  • Submit a written notification to the IRS
  • File the appropriate form with name change information

Step 4: Update Other Agencies

Notifying the IRS is only part of the process. Once your business name change is confirmed with the IRS, you should also update your name with other relevant authorities and entities. 

Common Errors to Avoid When Requesting a Name Change on Your EIN

Many business owners make expensive mistakes when requesting an EIN name change online.

Assuming All Changes Require New EINs

Not every business change needs a new EIN. Simple name changes only require you to notify the IRS. 

Failure to Notify All Necessary Parties

Changing your name with the IRS is only the start. Ensure you notify all stakeholders, including banks, vendors, and government agencies, after completing your EIN name change. 

Using Incorrect Forms or Procedures

Each type of business entity has its own requirements. The wrong procedure can cause a delay in updates or lead to compliance problems when submitting an EIN name change online.

Failure to Keep Consistent Records

Keep detailed records of when and how you notified the IRS about your name change. This documentation protects you if questions arise later.

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How Long Does an EIN Name Change Take?

The timeline for processing an EIN name change online varies depending on your method:

  • Tax Return Reporting: When you file your annual return 
  • Written Notification: Within 4–6 weeks
  • New EIN Application: Within 2–4 weeks

If you need to use your updated business name for official purposes, take these timelines into account and plan accordingly. 

Cost Considerations for EIN Changes

Here are the costs associated with processing an EIN name change online.  

Name Change Only

When you only need to update your existing EIN with a new business name, the costs are typically minimal:

  • IRS Processing: Free
  • State Filing Fees: Varies by state (typically $25–$100)
  • Professional Assistance: $50–$200 if you hire help

New EIN is Required

If you need to get a new EIN instead of just an EIN name change online, additional costs may apply:

  • IRS Application: Free when filed directly
  • State Registration Updates: Varies by state
  • Professional Services: $100–$500, depending on complexity

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FAQ

1. Can I change my business name online without going to the government offices?

Yes, it’s not only possible to update your EIN name online, but it’s also recommended for convenience and speed. However, state and local requirements may vary, and some jurisdictions still require in-person visits or paper filings.

2. How long do I have to report a business name change to the IRS?

The IRS doesn’t give a specific time limit, but you must inform them as soon as possible. For corporations and partnerships, you can report the change on your next annual tax return.

3. Will a change in my business name impact my credit history or my business relations?

Your EIN is associated with your business credit history; it won’t impact your credit profile after a simple name change. However, if you report to creditors, vendors, and partners, you must inform them to prevent confusion.

4. Do I need to update my business bank accounts when I change my name?

You’ll need to notify your bank about the name change after completing your EIN name change online. Some banks require you to open new accounts, while others allow you to update existing accounts.

5. What happens if I use my new business name before completing the EIN name change process?

Adopting the new name too soon creates compliance issues and confusion with the IRS. Complete your EIN name change online before operating under a new name.

Conclusion

You don’t always need to get a new EIN when you change your business name. If you’re only changing your business name and not your business structure, you’ll only need to follow a simple EIN name change online request to update your information through the IRS.  

However, if you’re making more changes, such as restructuring or changing ownership, a new EIN is essential. GovDocFiling can help simplify the process. Ensure business compliance when requesting an EIN name change online.