topic The only difference between a DBA, which is a sole propri... in Get your taxes done using TurboTax

If I change my business structure mid year and receive a new EIN. Which EIN do I use when I file my Taxes ? Is there a way to use both? Does it matter which one I use?

zackfennell — Thu, 06 Jun 2019 06:18:09 GMT

What type of entity were you? what type of entity are yo...

Lisa995 — Thu, 06 Jun 2019 06:18:11 GMT

What type of entity were you? what type of entity are you now?

This is not as simple as you may perceive it. What did yo...

Carl — Thu, 06 Jun 2019 06:18:17 GMT

This is not as simple as you may perceive it. What did your business change from? What did it change to?
For example, if you changed from a single member LLC to a multi-member LLC, you will be filing a final SCH C for the single member LLC showing the closure/disposition of that single owner business. Then you will file a completely and physically separate 1065 partnership return showing the acquisition/creation of a completely new business that is a multi-member LLC with two or more owners.

Sorry, I guess that is important. I had an EIN when we fi...

zackfennell — Thu, 06 Jun 2019 06:18:18 GMT

Sorry, I guess that is important. I had an EIN when we first started business as just a DBA, then after creating an LLC I applied for a new EIN.

So DBA to LLC

Neither DBA or LLC is a recognized tax entity. See
Rainman12 — Thu, 06 Jun 2019 06:18:21 GMT
Neither DBA or LLC is a recognized tax entity. See <a rel="nofollow" target="_blank" href="https://www.irs.gov/businesses/small-businesses-self-employed/business-structures">https://www.irs.gov/businesses/small-businesses-self-employed/business-structures</a>

The only difference between a DBA, which is a sole propri...

Carl — Thu, 06 Jun 2019 06:18:24 GMT

The only difference between a DBA, which is a sole proprietorship, and a single member LLC for tax purposes, is the spelling. That's it. Both are considered a disregarded entity for tax purposes. Your business structure did not change one iota, while at the state level the business "type" may have. You had no need to apply for a new EIN. I recommend you not even use the new EIN.

If you use the new EIN then you have to close the old business with the old EIN, and open a completely new business with the new EIN. That means you'll be filing two SCH C's for the tax year, and just creating a bunch of unnecessary work on your part.

I suggest you ignore the new EIN and file one SCH C with the old EIN and press on with life. It doesn't matter that the name of the business may have changed either. File the SCH C with the most current business name under the old EIN and be done with it.

There could be an issue if someone sends the OP a 1099-MI...

SweetieJean — Thu, 06 Jun 2019 06:18:25 GMT

There could be an issue if someone sends the OP a 1099-MISC with the new EIN.

Yes, and they'll have to deal with it if that happens by...

Carl — Thu, 06 Jun 2019 06:18:26 GMT

Yes, and they'll have to deal with it if that happens by requesting the issuer send them a corrected one. It will be a "whole" lot easier and simpler to do that, than the alternative of closing the old and opening the new business.