Business Starting Grants

when selling a business to someone do they keep same tax id or apply for a new one?

I am selling a small business and was wondering if they apply for a new tax id number or do we trsansfer ours to them?

Public Comments

1. You definitely don't want to transfer your Tax ID number to the new owners. I'm not sure that's even possible, but it would be a very bad idea.
2. they need to apply for a new one
3. They apply for a new one. The Tax ID is assigned to the person running the business.
4. They need their own tax ID. If they use YOURS, they can get you in a HEAP 'O TROUBLE with the tax people. On purpose, or by mistake.
5. Depends on if the individual(s) are buying the entity which owns the business or if they are buying the assets of the business. Specifically, if you own a corporation which owns a business, you may sell your interest (your shares) in the company. If the buyer is buying those shares, they are simply buying your corporation and thus will keep the same tax id (EIN#). But coupled with that, the buyers are now "burdened" with all rights and obligations of the corporation, which is not always good. Hopefully, the buyer(s) are forming a new entity (corporation, llc, partnership) in which they are buying your business' assets and starting fresh. This "fresh start" will include applying for a new ein#. Best advice I can give you is to check with your accountant/CPA. Good luck!!