An Employer Identification Number is one of the tax identification numbers the Internal Revenue Service uses to identify taxpayers, including corporations. The IRS provides the employer identification number, or EIN, free of charge to applicants who need the number to conduct business. Applicants may apply online or by mail, fax and telephone. The IRS will assign a new EIN to a newly purchased corporation to reflect change in legal and financial responsibility.
The Internal Revenue Service usually requires a new EIN when a corporation's business ownership changes. A new EIN is required if you purchase a corporation or if a statutory merger results in the creation of a new corporation. An existing business that becomes a subsidiary of a corporation or ends its subsidiary status will need a new EIN.
Advertisement Article continues below this adA new EIN is sometimes required when the structure of a corporation changes. You will need a new EIN if you change the business structure of a corporation to a sole proprietorship or partnership, even if ownership has not changed. The IRS regulates changes to business structures it recognizes in its codes, such as corporations and partnerships.