If you find that your LLC’s purpose has changed since its initial formation, you may need to take some steps to keep your business filings consistent.
What is an LLC statement of purpose?
When filing LLC Articles of Organization, most states require business owners to include their LLC’s purpose, or its reason for existence. In most cases, a purpose statement can be as broad as: “to conduct business in accordance with the state laws of [state].” In some states, you’ll be asked to be more specific by listing an industry for your business.
How do I change my LLC statement of purpose?
If your LLC’s statement of purpose (as included in your articles of organization) ends up contradicting your company’s purpose as it evolves, you can update your articles of organization by filing an amendment. Anytime the information found in your articles of organization changes, you should file LLC Articles of Amendment with your secretary of state’s office, or the equivalent business authority in your state.
Do I need to contact the IRS when my LLC purpose changes?
Not necessarily. The IRS keeps track of the business activities of nonprofits that benefit from tax-exempt status. If your business activities effectively change your tax status, you would definitely need to Notify IRS of Changes in Purposes or Activities. Additionally, if you decide to change your business name to better suit your new purpose, an IRS Business Name Change would need to be reported.
As for your EIN, according to the IRS you would only need to obtain a new EIN if the structure of your business changes. So, if changing the purpose of your LLC changes your tax-exempt status, or triggers a restructuring of your company from a single-member LLC to a multi-member LLC (or vice versa), you should apply for a new EIN. Otherwise—even if you decide to rename your company—you won’t need a new EIN.