Do you need a new TIN# (EIN#) if you buy a business (LLC) from someone?

A business was just recently bought and the actual name of the company will not change but the old owners name is still listed under the company and either his name needs to be removed or changed to the new owner. If this is done, will a new tax id # need to be issued?? Are you allowed to keep the old TIN# once you bought the business?

Answers:
Yes, you may keep the old EIN. The business has not changed, only the ownership has. Have you considered additional issues such as technical termination and Sec 754 Step Up? If there was a 50% or more change in ownership within a 12 month period, then the partnership is deemed to have terminated and reformed as of the date of sale. You will have to file a short period return from the beginning of the year to the date of sale and a second short period return from the date of sale to the end of the year. Also, you may be able to step up the basis of the partnership assets under Sec 754 and depreciate the step up if the purchase price of the partnership interest exceeds the partnership's tax basis in its assets. Transfers of ownership can be a very sticky area for partnership tax. Let me know if you need additional explanation.
the EIN belongs to the company not the owner

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