Business Name Change With IRS: Everything You Need to Know
A business name change with IRS may or may not require getting a new EIN depending on whether or not this was a result of a change in the kind of business.4 min read
2. LLC Name Change
3. Corporation Name Change
4. S Corporation Name Change
5. Partnership Name Change
6. Sole Proprietorship Name Change
7. LLC's Certificate of Amendment
8. You Need to Inform Others
A business name change with IRS may or may not require getting a new employer identification number (EIN) depending on whether or not the business name change was a result of a change in the kind of business organization.
Business Name Change Overview
Observing the growth of your business, you may decide that its name no longer properly represents your business values. But there are several factors to deliberate on before opting for a change of business name. Changing the name of your business can cost extensively. You'll have to start over with a trademark, domain name, business licenses, and even go lengths to ensure your new name won't confuse your customers and won't conflict with the business names of other businesses that could create a legal burden for you.
Typically, a business name change with the IRS won't require a new EIN, even though the name of the EIN will have to be changed. Though it hardly happens, sometimes a business name change can occur right after the issuance of an EIN. If such a business hasn't yet made any tax filings with the IRS, it can send its business name change notice to the following address: IRS-Stop 343G, Cincinnati, OH 45999. The medium through which a business informs the IRS of its name change is determined by the kind of company it runs.
LLC Name Change
A limited liability company (LLC) is a kind of business organization, which blends the flexibility and pass-through taxation benefits of a partnership with the liability protection of a corporation. LLCs are not recognized by the IRS for reasons of federal taxation. Instead, LLCs are categorized as corporations, partnerships, or sole proprietorships. If your LLC effected a name change, reporting the name change to the IRS only takes a statement on your LLC's annual tax return.
Corporation Name Change
If your organization changed its name because it was converted from a corporation to a limited liability company, it needs a new EIN. To request a new EIN, send an application through the IRS's online EIN assistant. As a corporation, you can file an annual Form 1120 by checking “Name Change” on page 1, line E.
Form 1120 is for the U.S. Corporation Income Tax Return, which requires companies to annually file their debts and income. When supplying the organization's new name under section A of the form, including the old name of the company won't be necessary because an officer of the company must sign the form.
S Corporation Name Change
An S corporation can file Form 1120S by checking “Name Change” on page 1, and adding its company's new name under section A. Again, it won't be necessary to include the company's old name because an officer of the company must sign the form.
Partnership Name Change
A partnership can file Form 1065 by checking “Name Change” on page 1, line G. It also needs to add only the new name of the company as an officer of the company must sign the form.
Sole Proprietorship Name Change
A sole proprietorship can file by writing to notify the IRS of its company's name change, and mail the document to the IRS address where it files its annual tax return. That's because the IRS doesn't have a formal notification form for sole proprietorships filing for a change of name. However, an officer of the company must sign the document of notification (the letter) before sending it to the IRS.
LLC's Certificate of Amendment
Even if you've already filed a tax return for the present year, you can still file for your company's change of name without waiting for next year. To change the name of your LLC, you need to file a certificate of amendment with the original home state or country of your company. When filing for a change of company name with the IRS, you have to send a copy of the certificate of amendment with a letter to the IRS address where you filed your annual return, to inform the IRS of the name change.
You Need to Inform Others
The moment you've changed your company's name with the IRS, you'll have to inform everyone else about your company's name change as well. It's not a bad idea to compile a list of all other agencies and organizations your company regularly transacts with. Some of them are as follows:
- Every state and local tax agency
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