Jason Dinesen

Jason Dinesen

On Posted on by Jason Dinesen to Small Business Tax and Accounting

Does My Partnership Need a New EIN if it Becomes an LLC?

Image courtesy of user jarmoluk on Pixabay.com
Image courtesy of user jarmoluk on Pixabay.com

Question: I am a co-owner in a partnership. The partnership has an EIN. We have now decided to form an LLC but will continue to be taxed as a partnership. Do we need a new EIN for the LLC?

Answer: No, you can keep your existing EIN.

Source:

From that webpage. I bolded the pertinent part:

You will not be required to obtain a new EIN if any of the following statements are true.

  • You report income tax as a branch or division of a corporation or other entity, and the LLC has no employees or excise tax liability.
  • An existing partnership converts to an LLC classified as a partnership.
  • The LLC name or location changes.
  • An LLC that already has an EIN chooses to be taxed as a corporation or as an S corporation.
  • A new LLC with one owner (single member LLC) is formed under state law, does not choose to be taxed as a corporation or S corporation, and has no employees or excise tax liability

Bottom line: If your existing partnership has an EIN and you decide to form an LLC and continue to be taxed as a partnership, you do not need a new EIN.

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