Sometimes businesses either want to change to a different type of business structure (eg from partnership to a S Corp) or they are in the process of closing the business. In either case, there must be specific steps followed to do either of these properly.
To change your type of business, understand these facts:
- Once an EIN is assigned to your business, it becomes a permanent Federal taxpayer identification number for your entity.
- If you prefer to change your type of business, you do not close your business. Instead, you must change your type of entity with an election.
If you are closing your business, these proper procedures will keep you in line with the IRS:
- Write to the IRS at: Internal Revenue Service, Cincinnati, OH 459999 stating the reason you wish to close your account.
- If you have a copy of the EIN assignment notice, include a copy of your EIN assignment notice that was issued when your EIN was assignement. Unclude that when you write. Otherwise, be sure to include the complete legal name of your busines, the EIN, and the business address.