What Happens to Your EIN When Dissolving a Corporation?

By Kay Lee

When you formed your corporation, you applied for an Employer Identification Number (EIN) from the Internal Revenue Service. This number uniquely identifies your business, and it is used on federal tax filings and all other correspondence with the IRS. State government agencies also typically require the use of the EIN on tax filings and correspondence. If you are thinking about winding down the business of your corporation, you might wonder what will happen to your EIN and whether it terminates when your business is dissolved.

Your EIN Is Permanent

Once your corporation has been assigned an EIN, it is permanent. That EIN will never be reassigned to another business. The IRS may close your account and your tax filing obligations may cease, but the EIN will still be used to identify your corporation, even after it has dissolved. This allows the IRS to easily locate your tax records if questions arise concerning prior tax years.

Closing Your IRS Account

To close your corporate account, an authorized representative of your business must write to the IRS and request that the account be closed. Before the IRS will close the account, all taxes must be paid and returns filed. In addition, the IRS has published a checklist of actions that must be performed when closing a business. The checklist includes tasks above and beyond those required to close your IRS tax account.

Ready to incorporate your business? Get Started Now

Filing Form 966

An authorized representative of your corporation must file Form 966, Corporate Dissolution or Liquidation, with the IRS. This form provides contact information for the corporation as well as the EIN and details on when and where the business was incorporated. Form 966 must be filed within 30 days from the date the formal decision is made to dissolve the corporation.

State Requirements

Although writing to the IRS and submitting Form 966 will close your business account, it may not be sufficient to wind down your business in the state where you incorporated. It is important to review the dissolution requirements with the Secretary of State or a similar agency in the state where your corporation was formed. Most states have a specific form you file to dissolve the corporation. In addition, all business debts and other obligations must be satisfied before the corporation is dissolved.

Ready to incorporate your business? Get Started Now
How to Close a Corporation With the IRS



Related articles

How to Close an S-Corporation in North Carolina

To close an S corporation, or S corp, there are a number of steps you must take to ensure that the corporation has settled its debts and will no longer be liable for taxes. Both the board of directors and the shareholders must agree to close the corporation. You should inform all business associates, creditors and consumers about the dissolution, and ensure that all business debts and wages are paid. Finally, you must notify the state and file final tax returns.

How to Notify Florida Department of Revenue of a Company Name Change

If your company does business in the State of Florida, you need to notify the Florida Department of Revenue when you change the company's name. This ensures that the state has the proper name for tax purposes. You might have problems with your tax accounts if the state has the incorrect name. You can notify the Department of Revenue with a one-page form.

How to Fill Out a W9 for a Sole Proprietor

If you own and operate a business and choose to run it as a sole proprietorship rather than creating a separate taxpaying entity for it, such as a corporation, the IRS will consider you to be self-employed. As a result, you will report all income you earn as a sole proprietor on your personal tax return – regardless of whether or not you were required to furnish your clients with W-9 forms.

LLCs, Corporations, Patents, Attorney Help

Related articles

The Steps in Starting an S-Corp

An S corporation is simply an ordinary corporation that has elected to be taxed under Subchapter S of the Internal ...

How to Get a Copy of My SS-4 for My Corporation

Form SS-4, Application for Employer Identification Number (EIN), is produced by the Internal Revenue Service and used ...

Dissolution of Sole Proprietorship

When it comes time to discontinue the operations of a business formed as a sole proprietorship, owners may find ...

How to Open a Bank Account for a Non-Profit Association

Nonprofit associations, like businesses, generate revenue and expenses. It is essential for nonprofits to maintain a ...

Browse by category
Ready to Begin? GET STARTED