Embarking on a business name change is a significant step, reflecting growth, rebranding, or strategic shifts. But before you print new stationery or update your website, one crucial task is to ensure the Internal Revenue Service (IRS) is fully aware of your new identity. Neglecting this step can lead to a cascade of issues, from misdirected tax notices to problems with filing returns and interacting with financial institutions.
This comprehensive guide will walk you through the process of changing your business name with the IRS, ensuring a smooth transition and compliance with federal regulations.
Step 1: Are You Sure About That Name Change? Initial Considerations and State Filings
Before you even think about the IRS, let's start with a foundational question: Have you legally changed your business name with your state? This is often the first and most critical step in the entire process. The IRS relies on the legal entity name filed with your state's Secretary of State or equivalent agency.
Understanding Your Business Structure and State Requirements
The specific steps for a legal name change vary significantly based on your business structure:
- Sole Proprietorship: If you operate as a sole proprietorship, your business name is generally tied to your personal name. If you're using a "Doing Business As" (DBA) name, also known as a fictitious or trade name, you'll typically register this with your local or state government. A legal change might involve updating your DBA registration.
- Partnership: Partnerships usually require amending your partnership agreement and filing new documents with your state.
- Limited Liability Company (LLC): For LLCs, you'll typically need to file Articles of Amendment with the Secretary of State in the state where your LLC was formed.
- Corporation (S-Corp or C-Corp): Corporations will also need to file Articles of Amendment with the state of incorporation, and often pass a "Resolution to Change Business Name" among shareholders or directors.
Key Takeaway: Always complete your state-level business name change first. Obtain a copy of the approved amendment or certificate reflecting your new legal name. This document will be crucial for notifying the IRS.
Step 2: Notifying the IRS – The Core of the Process
Once your state has officially recognized your new business name, it's time to inform the IRS. It's important to note that you generally do not need a new Employer Identification Number (EIN) simply because you've changed your business name, as long as your business structure and ownership remain the same. Your EIN is like your business's Social Security number—it's a permanent identifier.
The method for notifying the IRS depends on whether you are filing a current year tax return or if you've already filed.
Option 2A: Notifying the IRS When Filing Your Current Year Tax Return
This is often the simplest way to inform the IRS of your new business name. Many business tax forms include a specific box to check for a name change.
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For Corporations (Form 1120 or Form 1120-S):
- Form 1120 (U.S. Corporation Income Tax Return): Look for Page 1, Line E, Box 3 and mark it to indicate a name change.
- Form 1120-S (U.S. Income Tax Return for an S Corporation): Find Page 1, Line H, Box 2 and mark it.
- Remember to fill in your new business name prominently on the return.
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For Partnerships (Form 1065):
- Form 1065 (U.S. Return of Partnership Income): Locate Page 1, Line G, Box 3 and mark it.
- Ensure your new partnership name is clearly stated on the form.
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For Tax-Exempt Entities (Form 990 or Form 990-EZ):
- Form 990 (Return of Organization Exempt From Income Tax): Look for the second box under Section B on Page 1.
- Form 990-EZ (Short Form Return of Organization Exempt From Income Tax): The name change field is also located near the top left of the page under Section B.
Important Note: Sole proprietorships and single-member LLCs (taxed as sole proprietorships) generally cannot update their name by simply marking a box on their tax return (Form 1040, Schedule C). They will need to follow Option 2B.
Option 2B: Notifying the IRS by Written Letter
If you've already filed your current year's tax return, or if your business structure (like a sole proprietorship) doesn't have a specific name change box on its primary tax form, you'll need to send a written notification to the IRS. This is also the most common method recommended by the IRS for general business name changes.
What to Include in Your Letter:
Your letter should be clear, concise, and contain all necessary information to ensure the IRS can accurately update their records. Include the following:
- Your Old Business Name: The name currently on file with the IRS.
- Your New Business Name: The new legal name you want the IRS to recognize.
- Your Employer Identification Number (EIN): This is crucial for the IRS to identify your business.
- Your Business Address: Include both the old and new addresses if your address has also changed.
- Effective Date of the Name Change: The date your new name officially became effective with your state.
- Type of Business Entity: (e.g., Sole Proprietorship, Partnership, LLC, Corporation).
- A Request for Acknowledgment (Optional but Recommended): You can ask the IRS to send you a confirmation letter or an updated EIN verification letter with your new name. This provides proof that the change has been processed.
- Signature: The letter must be signed by an authorized individual for your business entity:
- Sole Proprietorship/Single-Member LLC: The business owner or an authorized representative.
- Partnership/Multi-Member LLC: A partner or authorized member.
- Corporation: A corporate officer (e.g., CEO, President, Treasurer).
Where to Send Your Letter:
Send your signed letter to the IRS address where you filed your last tax return. This is important because different IRS service centers handle returns from different regions. You can find the correct address on the IRS website or on your previous tax returns.
Example Letter Structure:
[Your Business Letterhead - Optional but Professional]
[Date]
Internal Revenue Service
[Address of the IRS Service Center where you filed your last return]
**Subject: Business Name Change Notification - [Old Business Name] to [New Business Name]**
**EIN: [Your EIN]**
Dear Internal Revenue Service,
This letter serves to formally notify you of a change in our business name. Our business, formerly known as **[Old Business Name]**, has legally changed its name to **[New Business Name]**.
This name change was officially recognized by the State of [Your State] as of [Effective Date of Name Change with State] through the filing of [e.g., Articles of Amendment, Certificate of Amendment]. A copy of the [Certificate of Amendment/relevant state document] is attached for your reference.
Our Employer Identification Number (EIN) **[Your EIN]** remains the same, as there has been no change in our business structure or ownership.
Please update your records to reflect our new business name. We would appreciate it if you could send a confirmation of this name change, or an updated EIN verification letter, to our current business address:
[Your New Business Address]
[City, State, ZIP Code]
Thank you for your attention to this matter.
Sincerely,
[Your Signature]
[Your Printed Name]
[Your Title (e.g., Owner, Partner, CEO)]
Enclosure: Copy of State-Approved Name Change Document
Step 3: What About Form 8822-B?
While not always explicitly required for a name change only, Form 8822-B, Change of Address or Responsible Party — Business, is primarily used to notify the IRS of a change in your business mailing address, business location, or the identity of your responsible party.
- If your name change also involves a change of business address, you should file Form 8822-B in addition to the methods described in Step 2.
- If only your name is changing, and your address and responsible party remain the same, sending a letter or marking the box on your tax return is generally sufficient for the name change itself. However, it doesn't hurt to include this form if there's any ambiguity about addresses.
Step 4: Keep All Your Ducks in a Row – Post-IRS Steps
Notifying the IRS is a major hurdle, but your work isn't done! A successful business name change involves updating numerous other entities and materials.
A. Update All State and Local Agencies
- State Tax Authorities: Notify your state's Department of Revenue or equivalent agency about your name change for state tax purposes.
- Business Licenses and Permits: Contact your local city, county, and state licensing boards to update your business licenses and permits. Many licenses are tied to your legal business name.
- Other Regulatory Bodies: Depending on your industry, you might be registered with various other state or local regulatory bodies (e.g., health department, professional boards). Inform them of your new name.
B. Financial Institutions and Business Partners
- Banks: Your business bank accounts must reflect your new legal name. You'll likely need to provide them with your state-approved name change document and potentially an updated EIN verification letter from the IRS (if you requested one).
- Creditors and Lenders: Inform any banks, credit card companies, or other lenders your business works with.
- Vendors and Suppliers: Update your name with all companies you do business with to ensure invoices and payments are accurate.
- Customers: Communicate your name change clearly to your customers to avoid confusion.
- Payment Processors: Update your name with payment gateways (e.g., Stripe, PayPal, Square) you use for transactions.
- Insurance Providers: Update your business name on all insurance policies (liability, property, workers' compensation, etc.).
C. Business Records and Branding
- Legal Documents: Review and update all internal legal documents, including your operating agreement, bylaws, contracts, and employment agreements.
- Marketing Materials: This is where the fun begins! Update your logo, website, social media profiles, stationery, business cards, signage, brochures, and all other marketing and branding materials.
- Payroll Services: If you use a payroll service, notify them of the name change.
- Domain Names and Trademarks: Consider registering your new business name as a domain name and conducting a trademark search to protect your new brand identity.
Step 5: Patience and Record Keeping
The IRS typically takes four to six weeks to process a business name change request. If you requested an acknowledgment or an updated EIN verification letter, it might take a bit longer.
- Keep Copies: Make copies of everything you send to the IRS, including your letter, any supporting documents, and proof of mailing (e.g., certified mail receipt).
- Monitor Your Mail: Watch for correspondence from the IRS.
- Follow Up: If you haven't received confirmation after the estimated processing time, you can contact the IRS Business & Specialty Tax Line at 800-829-4933 to inquire about the status. Have all your documentation ready when you call.
Changing your business name with the IRS is a critical administrative task that, when done correctly, ensures your business remains compliant and avoids unnecessary complications. By following these steps and being meticulous with your documentation, you can confidently usher in your business's new identity.
Frequently Asked Questions (FAQs)
How to determine if I need a new EIN when changing my business name?
You generally do not need a new EIN when only changing your business name if your business structure and ownership remain the same. A new EIN is typically required if your business structure changes (e.g., sole proprietorship to LLC, partnership to corporation), or if ownership significantly shifts. Refer to IRS Publication 1635 for detailed guidance.
How to change my business name with the IRS if I am a sole proprietorship?
Sole proprietorships typically change their name with the IRS by sending a signed letter to the IRS address where they file their tax returns. This letter should include your old name, new name, EIN, effective date of the change, and be signed by you, the business owner.
How to notify the IRS of a business name change for a corporation?
For corporations, you can notify the IRS by marking the appropriate name change box on your current year's Form 1120 (Page 1, Line E, Box 3) or Form 1120-S (Page 1, Line H, Box 2). If you've already filed, send a signed letter from a corporate officer to the IRS address where you filed your return.
How to update a partnership business name with the IRS?
Partnerships can mark the name change box on Form 1065 (Page 1, Line G, Box 3) when filing their current year's return. If the return has already been filed, a partner should send a signed letter to the IRS address where the return was filed.
How to get an updated EIN verification letter with my new business name?
While notifying the IRS of a name change updates their records, they don't automatically send a new EIN verification letter. You can specifically request an updated letter in your written notification to the IRS, or call the IRS Business & Specialty Tax Line to request one after your name change has been processed.
How long does it take for the IRS to process a business name change?
The IRS typically takes four to six weeks to process a business name change request once they receive it.
How to find the correct IRS address to send my name change notification?
You should send your notification letter to the IRS service center where you filed your last business tax return. This address can usually be found on your previous tax return forms or on the IRS website under "Where to File."
How to know if my business name change with the IRS was successful?
If you requested an acknowledgment in your letter, the IRS will send a confirmation notice. Otherwise, you can try contacting the IRS Business & Specialty Tax Line after the typical processing time (4-6 weeks) to verify the change has been updated in their system.
How to change my business address with the IRS in addition to my name?
If you are changing both your business name and address, you should file Form 8822-B, Change of Address or Responsible Party — Business, in addition to notifying the IRS of your name change through your tax return or a separate letter.
How to ensure all other agencies are updated after an IRS business name change?
After notifying the IRS and your state, create a comprehensive checklist of all entities your business interacts with, including state and local tax authorities, licensing boards, banks, creditors, vendors, payment processors, and marketing platforms. Systematically contact each one to update your business name.
