Changing Your Business Name? What You NEED to Know About Your EIN!

Viewer Question: Do I Need a New Federal ID Number if I Change My Business Name?

It's time for a viewer question today! David recently asked, "If I change the name of my business, do I need to get a new federal ID number?"

Well, thanks, David, for asking that question! Let’s dive a little deeper to clarify.

Understanding Federal ID Numbers and Business Name Changes

In the eyes of the IRS or the state, your federal ID number stays with the entity. The good news is that your entity can change its name through the Secretary of State or by using a DBA (Doing Business As).

Filing with the Secretary of State

If you change the name of your business and it’s an LLC or incorporated entity, there’s typically a process to follow. You'll file a piece of paper with the Secretary of State. Yes, you'll have to grease the palm and pay a small fee for that, but they will change your name as long as no one else has the same name or a very close variant. Once approved, your business name will legally be changed.

What If You’re Just Changing Your Marketing Name?

Now, if your name change is purely for marketing purposes and your corporate name remains the same, you might not need to change anything legally. For example, if you want to update the name on the front of your building, business cards, or in your new logo, you can leave your corporate name as is.

Multiple DBAs for Different Lines of Business

Like major franchises such as Subway or McDonald’s, your business can operate under multiple DBAs (Doing Business As). For instance, "McDonald’s" is often just the DBA, while the corporate name is something like "Judy Ventures LLC." You could also have different names for different product lines and still operate under the same LLC or corporation.

When Do You Need a New Federal ID Number?

The short answer to David’s question is no, you don’t need a new federal ID number just because you’re changing the name of your business. However, there’s one caveat: if you’re changing the actual entity type of your business, then yes, you’ll need a new federal ID number.

Example: Sole Proprietor to LLC

For example, if you were operating as "Joe’s Plumbing" as a sole proprietor, and you decide to incorporate as "Joe Jones Plumbing LLC," those are considered two different entities. In this case, you would need a new federal ID number.

Seek Professional Advice Before Making Changes

Applying for a new EIN (Employer Identification Number) can be confusing, and mistakes can cause issues with the IRS. Always consult with your accountant or a professional to ensure you’re doing it correctly.

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Donna Bordeaux, CPA with Calculated Moves

Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.