When converting a company from one corporate form to another,
one of the decisions to make is whether to obtain a new Employment
Identification Number (EIN) or to keep the current EIN in
place.
An EIN is a unique nine-digit number for U.S. business entities
used for tax filings and identification purposes. An EIN is often
required before a company can transact business, such as opening a
bank account, hiring employees, and/or paying certain taxes such as
payroll and excise taxes. Generally, when a company undergoes a
conversion, a question arises as to whether the conversion will
trigger the need to obtain a new EIN. This can lead to confusion as
there is no universal answer on what to do.
