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Why do I have to apply for a new EIN if I want to change from Single to Multi-Member LLC?

Updated this week

You'll need to apply for a new EIN when changing your LLC from Single-Member to Multi-Member (or vice versa) because the IRS treats these structures differently for tax purposes.

  • A Single-Member LLC is considered a disregarded entity for tax purposes, meaning its income is reported on the owner's personal tax return.

  • A Multi-Member LLC is treated as a partnership, requiring separate tax filings and compliance.

Since the IRS assigns EINs based on tax classification, switching between these structures is seen as a fundamental change in the business entity. As a result, the IRS requires a new EIN to properly track your tax obligations.

Not sure where to start? If you're an existing Adro customer, get in touch and we'll be happy to guide you through each step.

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