EIN after conversion from LLC to c-corp


1

We converted (created new entity then merged) from an LLC to a c-corp. The new c-corp has a different EIN than the LLC.

Do we need to notify/update our employees, clients and vendors about the new EIN?

Is there a way to let the IRS know the same company has a different EIN?

What happens if we missed some?

Tax USA IRS EIN

asked Feb 18 '13 at 06:23
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Aaron
8 points
  • Its not the same company. You said it yourself - you created a **new** company and merged into it. – Littleadv 7 years ago
  • Something I just thought of - if you have employees, you'll have to issue 2 W2's for each: one for the period employed by the LLC, with the LLC EIN, and the other for the period employed by the corp, with the corp EIN. – Littleadv 7 years ago

2 Answers


2

Also notify your bank and insurers of the new C-corp. and the new EIN. You can get hit with penalties if you don't notify insurers IN WRITING of the new EIN, since workers' comp and/or unemployment funds have to be under the correct number and the insurers in turn notify your state government, and the state government will think that you don't have coverage if it's just under the wrong EIN.

answered Feb 18 '13 at 13:40
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User6492
1,747 points
  • thanks for the info – Aaron 7 years ago

1

Creating new entity and converting an existing entity are not the same.

Do we need to notify/update our employees, clients and vendors about
the new EIN?

Yes.

Is there a way to let the IRS know?

Know what? You file a final tax return for the LLC (marking it as final on 1065 or as business closed on schedule C), and a first year return for the C-Corp. Have your accountant file the appropriate paperwork for merging, basis allocation, etc.

What happens if we missed some?

If they send you 1099 with incorrect EIN, you'll have to kindly ask them to correct. It can create a mess with the IRS because it may confuse them as to who get paid for what and by whom, so try not to miss anyone.

I'm not a tax professional and this is not a tax advice. Free opinions on Internet forums are worth exactly what you paid for them. For a proper tax advice please talk to a EA or a CPA licensed to practice in your state.

answered Feb 18 '13 at 06:28
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Littleadv
5,090 points

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