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Do I need a new EIN and name change for converting Sole Proprietor to Single Member LLC?

I am in CA, just formed a single member LLC from a sole proprietorship.  I have an existing EIN apart my social when I was a sole proprietor.  The only name change was having "LLC" at the end of the company name.  Do I need to obtain a new EIN? or can I use the existing?  I do not have any employees.  Do I need to do some type of name change to reflect the "LLC" or if there is no change in the body of the company name does that make a name change not necessary.

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3 Replies
Carl
Level 15

Do I need a new EIN and name change for converting Sole Proprietor to Single Member LLC?

You don't need to do anything. When it comes to taxes, the only difference between a single member LLC and a sole proprietorship, is the spelling. Literally!

Do I need a new EIN and name change for converting Sole Proprietor to Single Member LLC?

Just make sure which ever schedule you use in your 1040 reflects you correct business name.  

As a single member LLC you generally do not need a separate EIN.  See the attached discussion from the IRS:

https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-compan...

*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
Carl
Level 15

Do I need a new EIN and name change for converting Sole Proprietor to Single Member LLC?

If your LLC issues, or will even "potentially" issue a 1099-MISC or W-2 in the future, then I highly recommend an EIN. Otherwise, you will be putting your social security number on tax reporting documents you provide to employees and/or vendors that you may have never actually met and therefore do not know there. For me, I use an EIN in my single member LLC, because there is no way on this green earth that I will EVER give my SSN to one of my vendors. They get the EIN, or I don't do business with them.
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