Do I Need to Change My Delaware Business Name with the IRS?
Changed your Delaware business name? Updating your branding may require a business entity name change with the Delaware Secretary of State. Notifying the IRS of your corporate or LLC name change is an important second step. In most instances, a name change will not require a new EIN but a simple letter to provide notice to let the IRS know that your previous name is no longer in use, and you will now be legally known as your new name. If you change entity types when you change names, by converting or merging, you may need a new EIN.
How to Change Your Business Name with the IRS
If you have a brand new EIN and have not yet had an opportunity to file your first tax return, you will need to notify the IRS of your name change by writing to the address where you will file your tax return. A change of name notice must be signed by an authorized person. It should include a copy of the Certificate of Amendment filed with the State of Delaware that is the official registry of the entity name.
If you have already filed a tax return for the entity, you can notify the IRS of your name change accompanying your tax filing for the year. If your tax filing for the year is complete, you can still update your name by following the process of mailing a notice to the address where you filed your tax return with a copy of the Delaware Certificate of Amendment. Please be aware that the IRS is just the second step of a list of places you need to update. You should also update your bank, contracts, information on record with current vendors, or any other company or individual you do business with on a regular basis.
Can I Change My Business Name But Keep My EIN?
If you do not change entity type from LLC to corporation, you can always change your business name and keep the same EIN. A business name change for the same entity type and tax election, does not require a new Employer Identification Number (EIN).
When you change your business name with the state of formation, you must notify the IRS and update your records with the foreign states where it is registered to do business as a foreign entity. Businesses can notify the IRS through a written statement or report the name change when filing their next tax return.
You should also update your business name on bank accounts, and licenses. Keeping the same EIN allows your business to maintain its existing tax history and continuity with the IRS.
Who Else Should I Notify About My Business Name Change?
After changing your business name, it is important to update any organizations that write you checks for payment systems. Notifying the right parties helps prevent delays, payment issues, and confusion during your transition to the new name.
In addition to the IRS and state filing offices, consider updating your business name with:
- Banks and financial institutions
- Registered Agent
- Customers, vendors, and suppliers
- Insurance providers
- Licensing and regulatory agencies
- Payroll providers and accounting software
- Companies with whom you are doing business
- Website, email addresses, and marketing materials
Keeping your business records consistent across all platforms helps maintain credibility and ensures your new business name is properly reflected in your financial, legal, and operational documents.
Existing contracts should still be enforceable even if the counter party to the contract is not notified of the Amendment changing the name. Many businesses also decide not to amend the company name, but instead file a tradename also known as a Doing Business As (“DBA”). A DBA is a fictitious name filed in the state where your company was formed and other states where you do business.