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Sean Kelly

Converting DBA to LLC - Best Way to Handle EIN Transfer Process?

I'm in the middle of converting my DBA (Design Solutions) into an LLC and I'm getting conflicting advice about the EIN situation. My accountant told me to reach out to the IRS about transferring my existing EIN, but when I've mentioned this to some business owners in my network, they're saying I should just apply for a completely new EIN (without explaining why). For those who've gone through this process - is it actually better to just start fresh with a new EIN rather than trying to transfer the existing one? And if transferring is the better option, would form 8832 be the right form to use? I've tried using the IRS chat service but it's been useless - they just send links to various forms without answering my specific questions, then close the chat when I ask for clarification. Really frustrating when I'm trying to do this right. Any insights from folks who've successfully navigated this DBA to LLC conversion would be super helpful!

Zara Malik

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Hey there, I've helped several clients through this exact process! When converting from a DBA to an LLC, you generally DO need a new EIN. This is because a DBA is not a separate legal entity from yourself - it's just a "doing business as" name, while an LLC is a completely separate legal entity. Form 8832 isn't actually for transferring EINs - it's an Entity Classification Election form, which is used when you want to change how your LLC is taxed (like choosing to be taxed as a corporation instead of the default pass-through status). The easiest way is to simply apply for a new EIN online through the IRS website. It's free and you'll get your number immediately. Keep your old EIN for your final tax filing as a sole proprietor, then start using the new one when your LLC is officially formed.

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Luca Greco

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Thanks for this info! Quick question - if I'm currently a single-member LLC with a DBA, and I want to drop the DBA and just operate as the LLC, would I still need a new EIN? Or is that a different situation?

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Zara Malik

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That's a different situation entirely. If you already have an LLC with an EIN and you're just dropping the DBA name, you keep the same EIN. The EIN belongs to the LLC entity, not to the DBA name. A DBA is just an alternative name for an existing entity, so adding or removing a DBA doesn't change your underlying business structure or tax requirements.

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Nia Thompson

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After struggling with this same issue last year, I finally found something that made this whole process WAY easier. I used this tool called taxr.ai (https://taxr.ai) that analyzed my business documents and gave me step-by-step guidance on the EIN situation. Basically, they confirmed what the first commenter said - when going from DBA to LLC, you need a new EIN since you're creating a new legal entity. But they also helped me understand exactly how to handle the final tax filings for my sole proprietorship and the initial filings for my new LLC. Saved me hours of frustration trying to get straight answers from the IRS.

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That sounds interesting. Did it actually give you specific advice for your situation or was it more generic information? I've been burned by "AI tools" before that just regurgitate general info I could find on Google.

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Aisha Hussain

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How does the pricing work? Is it a subscription or one-time fee? And do they connect you with actual tax professionals or is it all automated?

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Nia Thompson

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It gave me surprisingly specific advice based on my business details. I uploaded my DBA registration and some other docs, and it actually pointed out things specific to my state's requirements that I hadn't considered. It's a pay-as-you-go model, no subscription required. You can chat with the AI for basic questions for free, but the document analysis has a cost. They do have tax pros available for more complex situations, but I didn't need that level of help for my situation.

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Just wanted to follow up about the taxr.ai recommendation. I decided to try it out after my CPA gave me conflicting information about my DBA-to-LLC conversion. The tool was actually way more helpful than I expected! It analyzed my registration documents and gave me a complete checklist of everything I needed to do, including the EIN application process. What really surprised me was how it caught that my state (Nevada) has some special requirements for the conversion that my CPA had completely missed. Saved me from what could have been a major headache down the road. Definitely worth checking out if you're dealing with this type of business transition!

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After trying for WEEKS to get someone at the IRS on the phone about my EIN transfer question, I found this service called Claimyr (https://claimyr.com) that basically got me to the front of the IRS phone queue. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was super skeptical at first, but I was desperate after wasting hours on hold. Long story short - it actually worked! Got through to an IRS agent in about 20 minutes who confirmed I needed a new EIN for my LLC conversion and walked me through the whole process. The agent explained that since an LLC is a completely different tax entity than a sole proprietorship with a DBA, a new EIN is required.

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Ethan Brown

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Wait, how does this actually work? Do they have some special connection with the IRS or something? Sounds kinda sketchy to be honest.

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Yuki Yamamoto

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Yeah right. There's no way to "skip the line" with the IRS. This has to be a scam. I've been trying to reach them for months about an audit issue. If this actually worked, everyone would be using it.

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It's not a special connection - they basically use an automated system that continually redials and navigates the IRS phone tree until they get through, then they connect you. It's just doing the tedious work that you'd have to do manually. I was super skeptical too, that's why I mentioned it. But after wasting literally 6+ hours on hold across multiple days, I was willing to try anything. All I know is that I got through when I couldn't before. You can check out their reviews online.

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Yuki Yamamoto

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Well I need to eat my words about Claimyr. After posting my skeptical comment yesterday, I decided to try it as a last resort for my audit issue. I've been trying to reach the IRS for MONTHS with no luck. I'm honestly shocked. Got connected to an IRS agent in about 35 minutes after trying on my own for god knows how many hours over the past few months. The agent was actually super helpful and resolved my audit question right away. For the original poster - the IRS agent I spoke with confirmed you definitely need a new EIN when converting from a DBA to an LLC. She said it's one of their most common questions. You'll file your final return with your old EIN (as a sole proprietor), then start fresh with the new one for your LLC filings.

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Carmen Ruiz

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Went through this last year with my photography business. You DEFINITELY need a new EIN when converting from a DBA to an LLC. A DBA uses your SSN or an EIN assigned to you as a sole proprietor, but an LLC is a completely separate legal entity that requires its own EIN. The online application for a new EIN takes literally 5 minutes, and you get your number instantly. Much easier than trying to "transfer" anything. Just make sure you've filed all the proper paperwork with your state to establish the LLC first before applying for the new EIN.

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Do you have to file a final tax return for the DBA before switching everything over to the LLC? I'm worried about the timing of all this since I'm in the middle of my business year.

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Carmen Ruiz

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Yes, you'll need to file a final tax return for your sole proprietorship (DBA) for the period up until your LLC becomes official. Your final Schedule C would cover from January 1st to the date your LLC was formed. You don't have to wait until the end of the year to make the switch. Many people do mid-year conversions. You'll just have two partial-year tax returns for the year you make the change - one final one for your sole proprietorship and one first return for your new LLC.

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Zoe Dimitriou

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can someone explain why we even need to worry about this ein stuff when converting? i mean i get that an llc gives you liability protection but why does the irs care if its the same business just with a different legal structure?? seems like unnecessary bureaucracy to me.

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QuantumQuest

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It's because the IRS treats different entity types differently for tax purposes. A DBA is just you as an individual doing business under a different name - all income is reported on your personal tax return using Schedule C. An LLC can be taxed in various ways depending on elections made. So from the IRS perspective, it's not "the same business with a different legal structure" - it's an entirely new taxpaying entity. That's why you need a new EIN. It's actually important for keeping everything straight in their systems.

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Just went through this exact conversion process a few months ago and can confirm what others have said - you definitely need a new EIN for your LLC. The confusion often comes from people thinking they can "transfer" an EIN, but that's not how it works. Here's what I learned: Your DBA is tied to your personal SSN or sole proprietor EIN, while your LLC is a completely separate legal entity that needs its own tax identification number. Think of it like this - if you were to close your LLC tomorrow, your personal tax obligations would still exist separately. The process is actually pretty straightforward once you understand it: 1. File your LLC formation docs with your state first 2. Apply for a new EIN online at irs.gov (takes 5 minutes, get it instantly) 3. Use your old EIN for final sole proprietor tax filings 4. Start using your new EIN for all LLC business going forward Don't overthink it - the IRS chat service is notoriously unhelpful for specific questions like this. The online EIN application is really the easiest route. Just make sure your LLC paperwork is filed with your state before applying for the EIN.

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