Q: If I close my company completely, what happens to my EIN? Do I have to do anything to cancel it?
Thank you to a client in Ankara, Turkey for that great question! Your Employer Identification Number (EIN) is an entirely unique nine-digit number assigned to your business by the IRS. So what happens to your EIN when you’re ready to shut down the business?
Well, nothing happens to it. A business’s EIN is as unique as a social security number, and it exists only for that business—whether it’s active or not. We’ll go over how you can close your IRS account or use your EIN at a later date.
Can I cancel my EIN?
No, your EIN can’t be canceled. Even if your business closes down or is administratively dissolved, your EIN is still connected to that specific business and always will be. According to the IRS, once your EIN is assigned, it is a “permanent Federal taxpayer identification number for that entity.”
Think of a business’ EIN like a person’s social security number. Even if a person passes away, their social is still theirs and can’t be used by anyone else. The same is true for your business. But much like a death certificate can be used to prevent fraudulent use of a person’s social security number, the IRS does have a process for closing out your EIN. Though it won’t cancel or delete your EIN, if you cancel your IRS business account, the EIN is shelved until you re-start the business.
How can I cancel my IRS account?
The process for canceling your IRS business account is pretty straightforward. First, you’ll want to make sure to pay any outstanding bills, employees, contractors, or taxes. (The IRS won’t let you close your account if you have any outstanding payments to make.) Once that’s taken care of, you just need to send the IRS a letter that includes:
- the business’ name
- the business’ EIN
- the business’ address
- the reason you want to close your account
If you still have a copy of your EIN Assignment Notice, include that, too. You can send both documents to the IRS via the mail and then you’ll be good to go.
Can I re-use my EIN at a later date?
If you decide later on that you want to re-open your business, you can re-use the same EIN. Since your EIN can’t actually be canceled, all you have to do is re-start your business to have access to it again. To re-start your business, you’ll need to check with your local Secretary of State’s office, or equivalent government office, to see the process for reviving your business.
Learn more about reinstating your corporation or LLC.
Can I use my EIN for a different business?
Generally, the answer for this is a resounding no. A business’ EIN is an unique number specific for that business and can’t be transferred. Even a business getting a new owner requires a new one. Each new business will require a new EIN—thankfully, the process is unlimited, and you can have as many EINs as you need.
Like many IRS rules, though, this isn’t entirely straightforward. There are a few exceptions that allow you to keep your EIN even if your business changes, such as:
- changing your business name
- changing your business’ location or adding a new location
- you’re a single-member LLC reforming into a multi-member LLC.
You can read the IRS EIN requirements online or call an IRS agent to get more information.