When running a business, you may encounter scenarios where changing your Employer Identification Number (EIN) becomes necessary. Whether you're restructuring your business, switching from a sole proprietorship to an LLC, or any other reason that requires an EIN update, QuickBooks makes it possible to manage these changes efficiently. This guide will walk you through the steps of changing your EIN in QuickBooks so that your financial records remain accurate and compliant with IRS regulations.
At QB Data Service, we understand that managing EIN updates QuickBooks can be a bit overwhelming, especially if you're not familiar with the process. That’s why we’ve compiled this comprehensive guide to help you through every step. Should you need further assistance, don’t hesitate to reach out to our support team at +1-888-538-1314.
Find out more: Which Accounts Do Not Appear on the Balance Sheet – Understand
What is an EIN?
The Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique nine-digit number assigned by the IRS to businesses for tax purposes. This number is essential for filing taxes, hiring employees, and managing other legal aspects of your business.
Why Would You Need to Change Your EIN in QuickBooks?
There are several scenarios where a business may need to change its EIN:
- Business Restructuring: If you're converting from a sole proprietorship to an LLC or a corporation, a new EIN is often required.
- Ownership Changes: If your business has been sold or inherited, you may need to apply for a new EIN.
- IRS Requirements: Sometimes, the IRS requires businesses to obtain a new EIN if there are significant changes in the business structure.
QuickBooks allows you to update your EIN so that your tax filings and reports reflect the correct information. Now, let’s explore how to do this.
Steps to Change EIN in QuickBooks
There are two ways to update your EIN in QuickBooks, depending on whether you’re using QuickBooks Online or QuickBooks Desktop. We’ll cover both methods in detail.
1. Changing EIN in QuickBooks Online
If you are a QuickBooks Online user, follow these steps:
Step 1: Login to Your QuickBooks Account
- Open your web browser and log in to your QuickBooks Online account.
Step 2: Navigate to Company Settings
- Once logged in, go to the Settings icon (a gear-shaped icon) in the upper-right corner of the screen.
- Under the Company tab, select Account and Settings.
Step 3: Update the EIN
- In the Company section, look for the Tax Info tab.
- Here, you will see your current Employer Identification Number (EIN).
- Click on the Pencil icon to edit the EIN.
Step 4: Save Changes
- After entering the new EIN, double-check to ensure the information is correct.
- Once confirmed, click Save and exit the screen.
At this point, your EIN is successfully updated, and QuickBooks will use this new number for future transactions and filings.
2. Changing EIN in QuickBooks Desktop
For QuickBooks Desktop users, the steps are slightly different:
Step 1: Open QuickBooks Desktop
- Launch QuickBooks Desktop on your computer.
Step 2: Navigate to Company Information
- From the Home screen, click on the Company menu at the top and select My Company from the drop-down options.
Step 3: Update EIN
- In the Company Information window, you will see various details about your business, including the EIN.
- Click on the Edit button next to the Company Information section.
Step 4: Enter the New EIN
- In the field labeled Federal Employer Identification Number, enter your new EIN.
- Review the number to make sure it is entered correctly.
Step 5: Save Changes
- Once you have entered the new EIN, click OK to save the changes.
Your EIN is now updated in QuickBooks Desktop, and the software will apply this new number for payroll, tax filings, and other important documents.
Check out more: A Comprehensive Guide on QuickBooks Keeps Freezing
Important Things to Keep in Mind
1. IRS Notification
While updating your EIN in QuickBooks is essential, remember that you must also inform the IRS of any changes to your EIN. QuickBooks updating alone does not notify the IRS. You will need to file the necessary paperwork with the IRS to officially change your EIN for tax purposes.
2. Payroll Adjustments
If your company uses QuickBooks for payroll processing, updating the EIN in QuickBooks will ensure that payroll taxes and other related documents are processed with the correct EIN. Failure to update this information could lead to discrepancies with your tax filings and payroll obligations.
3. Backups
Before making any significant changes to your business information in QuickBooks, it is always a good idea to back up your company file. This ensures that you have a recent version of your data, in case you need to revert any changes.
Common Errors While Changing EIN in QuickBooks
It’s not uncommon to encounter a few roadblocks when changing your EIN in QuickBooks. Here are some common issues and how to resolve them:
1. Invalid EIN Format
QuickBooks requires the EIN to be in a specific nine-digit format. Make sure there are no extra spaces or characters, and that you’ve entered the number correctly.
2. Permission Issues
If you're not logged in as an administrator in QuickBooks Desktop, you may not have the proper permissions to update the company information. Ensure that you’re logged in as the admin user before attempting any changes.
3. Payroll Service Issues
If your QuickBooks is integrated with Intuit's Payroll Service, updating your EIN may affect payroll processing. Always cross-check with the payroll service and update the EIN accordingly to avoid issues with tax filings and payroll runs.
Can’t Update EIN? Here’s What to Do
If you're experiencing difficulties updating your EIN in QuickBooks, it may be due to a configuration error or permission issues. In such cases, it’s best to reach out to a QuickBooks expert. At QB Data Service, our team of QuickBooks specialists can guide you through the process to ensure that your EIN is updated without any hassle.
Call us at +1-888-538-1314 for expert assistance.
Read more: QuickBooks Error 6000 83 – Troubleshooting Guide and Solutions
Conclusion
Changing your EIN in QuickBooks is a straightforward process, but it’s critical to ensure accuracy to avoid any complications with your tax filings and payroll. By following the steps outlined in this guide, you can easily update your EIN in both QuickBooks Online and QuickBooks Desktop. However, if you face any issues during the process, the team at QB Data Service is always available to assist you.
For any further questions or detailed help, feel free to reach out to our support team at +1-888-538-1314