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There were two partners in general partnership (50:50 share). One partner left and I took over all his share. Effectively business structure changed from General Partnership to Sole Proprietorship.

Here are my questions:

  1. Can I still use the old EIN from partnership times for the new sole proprietorship? Or should I apply for a new EIN?
  2. Can I actually start to use my SSN in this situation for the sole proprietorship?

So far the official information I have found is conflicting. Basically the SS-4 fine print says:

However, do not apply for a new EIN if the existing entity only [...] (c) terminated its partnership status because at least 50% of the total interests in partnership capital and profits were sold or exchanged within a 12-month period. The EIN of the terminated partnership should continue to be used.

And the IRS website

You will be required to obtain a new EIN if any of the following statements are true.

  • Your partnership is taken over by one of the partners and is operated as a sole proprietorship.

Am I misreading the instructions on SS-4 or is this information really conflicting?

Community
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Jonny
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2 Answers2

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To answer your question 2, I can't think of any advantage of using your SSN over an EIN, but there are some advantages to having an EIN as a sole proprietor. So depending on the answer to question 1, you may want to consider either keeping your existing EIN or getting a new one, even if you are allowed to use your SSN instead.

TTT
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-1

Can I still use the old EIN from partnership times for the new sole proprietorship? Or should I apply for a new EIN?

You cannot use the same EIN. Unless you have employees, you should use your SSN for the sole proprietorship. If you have employees - you should get a new EIN (if you don't have one already for yourself as a sole proprietor - you can only have one).

Can I actually start to use my SSN in this situation for the sole proprietorship?

In this particular case, not only you can - you should.

littleadv
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