The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification. But what happens to EIN after dissolving a corporation?
How to get an EIN number as a foreigner
- Login to Clemta.com
- Choose “I have a company”
- Scroll down and choose our EIN service!
If you don’t have a company, you can simply signup with Clemta, incorporate your business in the United States! Your Employer Identification Number will be included in our service fee with your incorporation request.
An EIN is unique to a business
Businesses need an EIN to file their taxes, and sometimes an EIN is required to open a company bank account. Once an EIN has been assigned, it is attached to that business in perpetuity. the EIN is never reused or reassigned.
An EIN is Permanent
You cannot cancel or close an EIN. Thus, even if a corporation is dissolving, the EIN remains. The IRS can then refer to the EIN to easily locate the business’s tax filings if it ever needs to in the future.
If the business receives an EIN but later determines that it is not needed, the IRS does not cancel the EIN, but it can close your business account.
How to close a business account through the IRS?
In order for you to close your business account with the IRS, someone authorized on behalf of the company must send a letter to the IRS. In this latter must-have, The legal name of the business entity, the EIN, and a copy of the original assignment notice, if you still have it; the address of the business and the reason for closing the account.
Before closing your account, your company must submit all tax returns, if applicable.
What happens to EIN after dissolving a corporation?
In a nutshell, the EIN is assigned only for a single business and can only be used for that business. This number becomes the legal entity’s permanent tax identification number and the EIN is never reused or reassigned to another business entity. If you receive an EIN but later determine you do not need the number (the new business never started up, for example), the IRS can close your business account. Even if you decide to close your commercial business, the EIN will continue to belong to the commercial organization and can be used at a later date if necessary.