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changing entity from Partnership to Sole Proprietorship

Level 3

Do you have to apply for a new Employer Identification Number with IRS if you change your entity status from Partnership to Sole Proprietor?

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6 Replies 6
Level 13

You say "entity".  Is this a LLC or similar legal formation?

Level 3

Its partnership. Mother and son, but mom has passed away.

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Level 15

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. 


ex-AllStar
Level 13

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.

Level 3

Thank  you.

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Level 11
Level 11

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.