There were two partners in general partnership (50:50 share). One partner left and I took over all his share. Effectively business structure changed from General Partnership to Sole Proprietorship.
Here are my questions:
- Can I still use the old EIN from partnership times for the new sole proprietorship? Or should I apply for a new EIN?
- Can I actually start to use my SSN in this situation for the sole proprietorship?
So far the official information I have found is conflicting. Basically the SS-4 fine print says:
However, do not apply for a new EIN if the existing entity only [...] (c) terminated its partnership status because at least 50% of the total interests in partnership capital and profits were sold or exchanged within a 12-month period. The EIN of the terminated partnership should continue to be used.
And the IRS website
You will be required to obtain a new EIN if any of the following statements are true.
- Your partnership is taken over by one of the partners and is operated as a sole proprietorship.
Am I misreading the instructions on SS-4 or is this information really conflicting?