Do I Need to Renew My EIN Number or Get a New One?
Learn when you need a new EIN, when your existing one remains valid, and how to verify or replace it for compliance with IRS requirements.
An Employer Identification Number (EIN) is a unique identifier assigned by the IRS to businesses for tax purposes. Many business owners wonder whether they need to renew or replace their EIN as their company evolves. Understanding when an EIN remains valid and when a new one is required can help avoid unnecessary paperwork and tax complications.
Reasons an EIN May Not Need Renewal
Once issued, an EIN remains valid indefinitely, even if a business relocates, changes its name, or shifts its focus. The IRS does not require renewal in these cases because the entity itself remains the same for tax purposes. For example, if a sole proprietorship adopts a new business name but retains the same owner, the EIN remains valid since tax obligations are still tied to the individual.
Businesses that undergo partial ownership changes without a complete transfer of control also typically keep their existing EIN. If one partner in a partnership buys out another but the partnership itself continues, the EIN remains unchanged.
Corporations and LLCs that restructure internally without altering their legal classification also retain their EIN. A corporation that elects S-corporation tax treatment does not need a new number because it remains the same legal entity, only changing its tax designation. Similarly, an LLC that switches from a disregarded entity to a partnership for tax purposes but keeps the same ownership structure does not require a new EIN.
Circumstances That Require a New Number
Certain business changes require obtaining a new EIN because they create a legally distinct entity in the eyes of the IRS. One of the most common situations is when a sole proprietorship incorporates or forms an LLC. Since a sole proprietorship is tied directly to the owner’s Social Security number, transitioning to a corporation or LLC establishes a separate legal entity, necessitating a new EIN.
Partnerships that dissolve and reform with a different ownership composition also require a new number. If a partnership ends because one partner leaves and the remaining partner continues as a sole proprietor, the previous EIN becomes invalid. Likewise, if a new partner joins and a new partnership is formed, a fresh EIN is required.
Corporations undergoing structural changes, such as mergers, consolidations, or conversions into a different entity type, must also obtain a new EIN. If two corporations merge, the surviving corporation typically retains its EIN, while the dissolved entity’s number is no longer valid. However, if a corporation reincorporates under a new charter or converts from a C corporation to an LLC, a new EIN is necessary.
How to Verify if Your Number Is Still Current
To confirm whether an EIN remains active, businesses can check past tax filings. If the EIN has been used on recent federal tax returns, it is still recognized by the IRS. Businesses that have not filed required returns for multiple years may find their EIN flagged as inactive.
Another way to verify EIN status is by calling the IRS Business & Specialty Tax Line at 800-829-4933. IRS representatives can confirm whether the EIN is still associated with the business and identify any compliance issues. Having details such as the business name, address, and responsible party’s identifying information ready can help streamline the process. If the IRS has marked the EIN as inactive due to prolonged non-use, updated filings or other actions may be required to restore its status.
Banks and financial institutions also verify EINs when businesses open accounts or apply for credit. If a bank flags an EIN as unrecognized or invalid, it may indicate a discrepancy in IRS records. Ensuring that business records match IRS documentation helps prevent issues when dealing with lenders, vendors, or government agencies.
Steps to Obtain a Replacement Number
When a business needs a new EIN, the fastest way to apply is through the IRS’s online EIN application portal, which provides an immediate issuance upon successful completion. This option is available for entities with a principal business location in the U.S. or U.S. territories, and the responsible party must have a valid Taxpayer Identification Number (TIN), such as a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
If applying online is not feasible, businesses can submit Form SS-4 via fax or mail. Faxed applications typically take four business days to process, while mailed submissions can take up to four weeks.
Before applying, businesses should ensure that all details align with IRS records. Discrepancies in business names, addresses, or responsible party information can lead to processing delays. Certain entity types, such as trusts and estates, may need to provide supporting documentation, such as court appointment letters or trust agreements, to validate the EIN request. If a business is requesting a new EIN due to a legal structure change, documents like articles of incorporation, dissolution certificates, or IRS determination letters may be required to confirm eligibility.