- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Do you have to apply for a new Employer Identification Number with IRS if you change your entity status from Partnership to Sole Proprietor?
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
You say "entity". Is this a LLC or similar legal formation?
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Your question indicates you are going from a more than one entity (Partnership) to a one person entity (Sole Proprietor). This would indicate an answer of YES.
The Sole Proprietor may not even need an EIN.
Answers are easy. Questions are hard!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
But if this is one "entity" (such as a LLC), the answer is "no". A Multi-Member LLC changing to a Single Member LLC does NOT need a new EIN for the LLC. But for purposes of W-9s/1099s, the person probably would want to get an EIN in their personal name.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Its partnership. Mother and son, but mom has passed away.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thank you.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
This is from IRS: Here is link for you to research:
https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein
Partnerships
You will be required to obtain a new EIN if any of 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.