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changing entity from Partnership to Sole Proprietorship

Alfredo1967
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 Comments 6
TaxGuyBill
Level 15

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

Alfredo1967
Level 3

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

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George4Tacks
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. 


Here's wishing you many Happy Returns
TaxGuyBill
Level 15

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.

Alfredo1967
Level 3

Thank  you.

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Terry53029
Level 12
Level 12

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.