Buyer retains Corp FED ID if he purchases stock of the company- What about an LLC?

[Taxadvisor VA]

Taxpayer has an LLC. Question was raised if they sell the company (LLC only- sole member- technically no stock issed) can the buyer use their company name and federal ID?

My initial thought and response is "No." Reason is their is no "official stock" that was issued. When they buy this small LLC company, they are really buying just the assets and liabilities and customer list.

Has anybody run accross this type question before?

Thanks for your response.

Taxadvisor VA

[Lion]

I think the SS-4 instructions have a When to get a new EIN section.

[Golden Rocket]

My views on this

I don't believe in proliferating additional FEIN numbers if there is no reason to do so. Doing so would mean having to change the numbers with bankers, vendors, customers, etc. if they have a need to use the number. And the IRS is delighted not to have to issue another # needlessly.

There is no "stock" as such, but each member has a ownership share, and each member has a basis. The owners have to come to grips with these things when they report the sale, and there will be an equity section in the surviving balance sheet whether anyone wants to call it "stock" or not. My LLC customers do not have a caption called "capital stock" but they definitely have equity. If there are multiple owners I keep equity balances and basis for each owner just as if they were shareholders.