I just changed my corporation name with my state. We are moving in a new direction setting up different DIVISIONS not subsidiaries under the corporation. The IRS says we do not need a new FEIN for a corporate name change...only if a new charter is issued by the state. I believe I will just be getting an amendment to the original charter.

My question is: Would it be better for us to get a new FEIN anyway since the corporation is going in a whole new direction, just to keep the records clear? I would close the books and file the taxes for the original corporation and start fresh with the new corporation under a new FEIN.

Please help!

Thank you!

Ron

No, you do not need to apply to have a new FEIN, I would recommend that you keep the old FEIN!

There is also no reason to open up a new corporation for that matter despite the fact that you intend to take your corporation in a new direction.

Clearly, closing the existing corporation and registering a new corporation would be quite a costly and unnecessary expenditure, (especially in todays climate where taxpayers are looking to save money). I would keep the old FEIN and operate the same corporation under an amended corporate charter.

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Thank you! I have already amended the charter and filed one DBA under the corporation. As you said...to save money, I decided to do it this way. To register a new corporation would have been $100 plus $20 for the DBA. By amending the charter ($20) and filing a DBA ($20), I saved $80. That is the reason I opted for the name change.

The new FEIN would only have been to keep the old and new "separate".