Federal Tax ID #
If a client changes his business from a partnership to a sole proprietor, can he still use the same federal ID#?Thanks
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2 Replies
08/09/08 8:57am PDT
A partnership to a sole proprietorship DOES require a new EIN. See the information below from the IRS website.
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.
You will not be required to obtain a new EIN if any of the following statements are true.
-The partnership declares bankruptcy.
-The partnership name changes.
-You change the location of the partnership or add other locations.
-A new partnership is formed as a result of the termination of a partnership under IRC section 708(b)(1)(B).
-50 percent or more of the ownership of the partnership (measured by interests in capital and profits) changes hands within a twelve-month period (terminated partnerships under Reg. 301.6109-1).
Tracia
08/10/08 1:56pm PDT
Latest post
The partnership will close and the EIN given up. A sole prop does not need an EIN unless there is p/r to EEs.
