An Employer Identification Number (EIN) is a permanent, unique identifier for a business entity, similar to a Social Security Number for an individual. While the EIN itself cannot be changed, the name associated with it must be updated with the Internal Revenue Service (IRS) following any legal name change. The procedure for changing the name linked to your EIN depends on your business’s legal structure and whether you are changing the formal legal name or a public operating name. Keeping the name on file accurate is necessary for smooth tax filing, banking, and general business compliance. Prompt notification to the IRS prevents processing delays and maintains the continuity of your business records.
Distinguishing Your Legal Name from Your Trade Name
Understanding the update process requires recognizing the difference between the business’s legal name and its trade name, often called a “Doing Business As” (DBA) name. The legal name is the official designation under which the business is formally organized with the state, and it is the name the IRS uses to identify the taxpayer linked to the EIN. A trade name (DBA) is a public-facing, operational name used for marketing and interacting with customers. Changing the legal name requires a formal notification process to the IRS because it alters the taxpayer’s official identity. Updating a trade name is simpler and typically does not require a specific, separate IRS notification.
Legal Name Change Requirements Based on Business Structure
The requirement for notifying the IRS of a legal name change is triggered by the business structure and associated state-level changes. The IRS must be informed after the formal name change has been finalized at the state level, but the mechanism varies significantly across entity types. The name change must first be legally registered with the state before the federal update can be completed.
Corporations
A corporation’s legal name change must be registered with the state where it was incorporated, usually by filing amended Articles of Incorporation or a similar document. This state-level filing officially amends the corporation’s charter, establishing the new legal identity. Once the state approves the change, the corporation must notify the IRS of the change in its federal tax identity.
Partnerships
For a partnership, changing the legal name requires amending the underlying partnership agreement to reflect the new designation. After the partners formally agree to the change and update the foundational legal documents, the IRS must be notified. A new EIN is not required, provided the partnership’s structure and the partners themselves remain the same.
Sole Proprietorships and Disregarded Entities (Single-Member LLCs)
A sole proprietorship or a single-member Limited Liability Company (LLC) taxed as a disregarded entity has the simplest procedure for a legal name change. The owner notifies the IRS of the new name when filing their annual individual tax return, such as on Schedule C, by using the new business name. If the business structure itself does not change, the existing EIN remains valid and no separate, immediate filing is required.
Updating Your Trade Name (DBA) with the IRS
The process for changing a business’s trade name (DBA) is separate from changing the legal name and involves minimal direct interaction with the IRS. Since the trade name is not the official name tied to the EIN, the IRS does not require a dedicated form solely for this update. Notification of a new trade name is accomplished by using the updated DBA in the appropriate field on the business’s annual tax return. For example, a sole proprietor notes the new DBA on Schedule C, while a corporation uses it on Form 1120. Updating the DBA on a tax form does not replace or change the legal name on file with the IRS, which is used for matching and verification purposes.
Official IRS Procedures for Legal Name Changes
For most entities, the primary method for notifying the IRS of a legal name change is through a written letter or by checking a box on the annual tax return.
Notification via Annual Tax Return
Corporations filing Form 1120 and partnerships filing Form 1065 can indicate the name change by marking the designated box on the first page of their return. This method is the simplest, as it coincides with the regular annual filing process.
Notification via Written Letter
If a business needs to notify the IRS before the next annual tax return is due, or if the entity type does not have a designated box on its return, a signed letter is the alternative method. This letter must include the new legal name, the previous legal name, the Employer Identification Number, and the signature of an authorized party, such as a corporate officer or a partner. This notification should be sent to the IRS service center where the business files its tax returns.
Using Form 8822-B
Some businesses may choose to use Form 8822-B, Change of Address or Responsible Party—Business. While this form is primarily used for updating a mailing address or the identity of the responsible party, providing the new name on the business name line can help facilitate the update in IRS records. For faster processing, it is recommended to notify the IRS as soon as the legal name change is finalized at the state level.
Necessary State and Local Notifications
Changing a business name requires separate notification to various state and local authorities beyond the federal level. Before updating the name with the IRS, corporations and LLCs must file amendments to their organizational documents with the state’s corporate registry. This state-level approval is necessary to make the new name legally effective. The business must also update its name with state tax authorities for accounts like sales tax and franchise tax. Furthermore, any local licenses, permits, or occupational registrations must be updated. Owners must proactively consult local and state agencies to ensure compliance, as requirements depend on the specific jurisdiction.
The Importance of Maintaining Accurate EIN Records
Failing to update the legal name associated with the EIN can result in significant administrative complications and operational disruptions. The IRS uses the EIN and the official legal name to match and process all incoming tax documentation, including annual returns and employer filings like W-2s and 1099s. A mismatch between the name on the tax return and the name on file can lead to processing delays, rejection of filings, and penalties. Accurate records are also necessary for seamless financial operations, as banks require the legal name on business accounts to match the name registered with the EIN. Timely notification ensures the business remains compliant, avoids unnecessary correspondence, and maintains uninterrupted access to essential financial services.