Business Name Change with IRS: Complete Filing Steps

Key Takeaways

• You can complete a business name change with the IRS by either updating your annual tax return or submitting a written notification.
• Corporations, LLCs, and sole proprietorships follow slightly different IRS procedures for name changes.
• In most cases, you don’t need a new EIN unless your business structure or ownership also changes.
• Always include documentation, such as your state-approved Certificate of Amendment, when notifying the IRS.
• After updating your name with the IRS, also notify banks, vendors, and state agencies to maintain consistency.
• Failure to update the IRS can result in processing delays or mismatched EIN records.
• Processing usually takes about six weeks, and you’ll receive confirmation from the IRS by mail.

As your business evolves, you may determine that you need to undergo a name change. Changing your business name with the Internal Revenue Service (IRS) can be done in one of two ways. Corporations and LLCs can check the name change box while filing their annual tax return with the Internal Revenue Service (IRS). You can also notify the IRS through a name-change letter if the change needs to be quicker or if you’ve never filed an IRS return for the business.

Reasons to Change Your Business Name with the IRS

If you have changed your business name,  you will also need to update your business name with the IRS. You’ll need to change your name with the IRS to ensure tax compliance by keeping all documents accurate and legally compliant. Failure to update your business name with the IRS can result in legal complications, including fines or penalties. 

In short, your EIN and business name must match in order for your return to be processed. Additionally, your business name maintains a professional image, reflecting reliability to partners, customers, and the IRS. 

If you are changing your business name and address, you will need to notify the IRS and file IRS Form 8822-B.

Steps to Change Your Business Name with the IRS

1. Find and research a new name, ensuring it will not infringe on any trademarks.
2. Notify the  Secretary of State for your state about the name change.
3. Get the name changed in your licenses and permits.
4. Inform the IRS about the name change. In some cases, you may be required to obtain a new EIN.
5. Update the new name in your business documents.
6. Communicate the name change to your bankers, vendors, customers, and all other concerned parties.

Additional IRS Forms and Mailing Addresses

When processing a business name change with the IRS, the correct mailing address and form depend on your entity type and filing status:

• Sole Proprietorships and Single-Member LLCs should mail their signed notice to the same IRS address where their most recent tax return was filed.
• Corporations should check the box on Form 1120 (Line E, Box 3) or Form 1120-S (Line H, Box 2). If the return has already been filed, mail a signed letter to the corresponding IRS service center.
• Partnerships and multi-member LLCs should mark the name change box on Form 1065 (Line G, Box 3).

Include:

• Your current EIN.
• The old and new business names.
• The effective date of the name change.
• A signature from an authorized officer or owner.

Mail the notification to the IRS service center that processes your entity’s tax returns. The IRS website provides an updated list of addresses to ensure timely delivery

Business Name Change vs DBA

Before filing a name change with your state and the IRS and informing your bank, creditors, and others about the change, you should first make sure that you don’t just need a simple Doing Business As (DBA) filing.

Every registered company has both a legal name and a trade name. The legal name may be something like “Awesome Business LLC,” but that entity then owns a brand called “Red Shoes.” Awesome Business LLC may be confusing to customers, so by filing a DBA the company can sign receipts and invoices as “Awesome Business LLC dba Red Shoes.”

Here is how to decide whether you need a business name change or to simply file a DBA:

• If you are changing your whole business and your old name no longer applies, changing the business name is a clean option.
• If you’ve rebranded your product but the old business name still applies, filing a DBA may make the most sense.

Assuming you’ve decided that changing your business name is the right move, here are the steps to do so with the IRS.

How to Notify the IRS of Your Business Name Change

Once you have changed your business, you will also need to update the name with the IRS. You can do this by following the steps below:

1. Update your business name on your current year tax return.
2. If you have already filed your current year tax return, you can send a signed letter to the IRS.
3. Include Necessary Documents: Attach a copy of the state-approved name change document (Certificate of Amendment) with your letter.
4. Sign the Letter: Ensure the letter is signed by an authorized officer of the company.
5. Wait for Confirmation: The IRS typically takes six weeks to process the name change. Ensure you receive confirmation before assuming the change is complete.

How Long Does It Take for the IRS to Update Your Business Name

The IRS typically processes business name changes within six to eight weeks. However, processing time may vary based on:

• The time of year (busy filing seasons may cause delays).
• Whether you filed electronically or by mail.
• If the IRS requires additional verification documents.

You can confirm the update by calling the IRS Business and Specialty Tax Line at 1-800-829-4933. Have your EIN and previous business name ready to verify your identity.

If you do not receive confirmation after eight weeks, contact the IRS to ensure your request was received and processed.

Sample Business Name Change Letter to the IRS

One way to notify the IRS about your business’s name change is by mailing a letter to the IRS. This process is typically followed when a current year’s return has already been filed. Let’s take a look a sample letter that can be sent to the IRS to notify them of your business’s name change below:

When to Apply for a New EIN

• Usually, when simply changing your business’s name, you will not be required to change the EIN as long as the ownership or business structure has not changed as well.
• Other changes that often come with a business name change, such as change of ownership, bringing on partners, incorporation, you become a subsidiary of a bigger company, or changing the business classification at all such as from a Corporation to an LLC will require an EIN change.
• A full list of times you need to change your EIN along with a business change can be found here on the IRS’s website.
• If your business meets the requirements for changing the EIN, you must both apply for a new EIN and cancel the account for the existing one.
• EINs are unique to the business for which they were issued, and a canceled number will never be reused for another business.
• To apply for a new EIN, go here and follow the steps required.
• To cancel an EIN, write to the IRS at "Internal Revenue Service, Cincinnati, Ohio 45999" and give the reason for why you want to close the account. Be sure to include the complete legal name of your business, the EIN, and the business address.

How to Handle Business Name Changes for Different Entity Types 

The process to change your business name depends on your entity type. Below is a guide to making the change, based on your business structure:

Business Name Change with the IRS for Nonprofit Organizations

Nonprofit organizations must notify the IRS of a name change to maintain compliance under Internal Revenue Code Section 501(c)(3). The process involves:

1. Amending Articles of Incorporation with your state.
2. Reporting the change on your Form 990, 990-EZ, or 990-PF.
3. Including a copy of the state-approved amendment when filing the return.

4. If the return for the current year has already been filed, sending a written notice and documentation to the IRS Exempt Organizations division:

   Internal Revenue Service   Exempt Organizations   1973 N. Rulon White Blvd.   Ogden, UT 84404  

   The letter must be signed by an officer authorized to represent the organization.

This ensures your public IRS records, such as the Exempt Organization Search Tool, reflect the new name

What to Do After Your Business Name Change

After you have updated your business name, be sure to do the following:

Common Mistakes to Avoid When Changing Your Business Name with the IRS

When changing your business name, avoid the following common mistakes to ensure your business transition is a success.

Avoiding EIN Confusion After a Business Name Change

A frequent mistake business owners make during a business name change with the IRS is assuming a new EIN is required. In reality:

• A new EIN is only necessary if your business structure or ownership changes (e.g., from sole proprietor to corporation).
• If only your name changes, the existing EIN remains valid.
• However, if your records still display the old name, you can request an updated EIN verification letter (Form 147C) by contacting the IRS Business and Specialty Tax Line.

Always confirm your EIN matches your updated legal name to prevent return rejections or payment posting errors

Final Steps: Ensure Your IRS Business Name Change is Successful

After submitting your business name change to the IRS, monitor the process. Stay in touch with the IRS to ensure you have done it correctly. If you have also updated your address, be sure to keep track of IRS Form 8822-B. You should also keep copies of all relevant documents, and ensure you notify other necessary entities like your bank, state agencies, and business partners of the name change to avoid any future issues. If you help and are looking for Legal Assistance with Your IRS Business Name Change? Get Expert Help with UpCounsel Today.

Frequently Asked Questions

1. How do I confirm the IRS updated my business name?

You can call the IRS Business and Specialty Tax Line at 1-800-829-4933 about six weeks after submitting your name change.

2. Can I change my business name with the IRS online?

No. The IRS currently requires either a paper tax return with the name change box checked or a mailed written notice signed by an authorized representative.

3. Do I need to notify the IRS if I filed a DBA?

If you only registered a DBA (doing business as) and did not legally change your business name, the IRS typically does not require notification.

4. What happens if I use my old business name on tax documents?

Using an old name may cause your return to be delayed or rejected, as it won’t match the IRS’s EIN records. Always update before filing.

5. Should I update my EIN after a merger or reorganization?

Yes. If your business merged or underwent structural changes, you’ll need a new EIN to reflect the new entity type or ownership.

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