EIN and sale of SMLLC..

[outwest]

Opinions please, if a single member LLC business sells LLC/business to another person, should the buyer establish a new EIN? The business will continue under the same name.

I seem to recall that with a SMLLC, the EIN of the disregarded entity is tied to the individual owner's name. That would imply a new EIN would be required of the buyer.

Don't want to start a whole new set of payroll permits if that can be avoided.

What say you all?

Doug

[BOB W]

My take.....

.... is an LLC is a separate entity even if tax reporting is a schedule "C". All SS-4's ask for the SS# of the President, Owner or Member. When other entities change ownership the name on the original SS-4 means nothing.

I say change the address and move forward.

One last note: Is the new owner (member) going to purchase the LLC? I'm assuming the seller had LLC in his business name (AceWhatever, LLC). And the new owner will be exactly the same name?

[cpadan]

Doug, check out page 5 of the instructions for SS-4 which says "do not use the former owner's EIN unless you became the "owner" of a corporation by aquiring its stock."

Also see page 8 of Pub 1635 which says sole prop. may not transfer EIN.

Hope this helps
Dan

[outwest]

Looking at the SS-4 instructions..

I've decided that the disregarded entity handling at the IRS makes it safer to get a new EIN. I'd like to treat it as a corporate stock purchase, but it really isn't so I think a new EIN is required.

Thanks all.

Doug