When your business receives a new Employer Identification Number (EIN), the IRS and state governments view it as a brand-new legal entity. This means the tax accounts tied to your old EIN must be formally closed with each state, and your new EIN must be registered before future filings can be made.
This article provides an overview of the process so you know what to expect, can prepare the right records, and coordinate timelines with your team in advance. While state processing times can vary and are not always predictable, we’ll keep you updated along the way to help minimize delays.
If you’d like more guidance beyond what’s covered here, reach out through the message widget in your Numeral dashboard. Our team can walk you through the process, outline timing considerations, and share possible options so you can make informed decisions about when to complete your final filings under the old EIN and when to activate your new registrations.
💡 Recently changed EINs before joining Numeral? If you already have active state accounts under the new entity, let our onboarding team know. We’ll verify that the EIN on each state registration matches the one you provided during onboarding.
Setting up your new entity with Numeral
⚠️ Do not edit company details associated with your existing account—it should be preserved for historical records.
Create a new Numeral account
Go to your Numeral dashboard
Open the dropdown menu in the top left
Select “Add Client”
Enter your new business details, upload requested documents, and set up your virtual mailbox for the new entity
Our team is available to guide you if you have any questions during setup.
Determine Activation Timing
Coordinate with your team to decide when your new EIN and business name should take effect. We’ll close your existing state accounts and re-register them under the new entity.
In most cases, prospective registration and filing is the smoothest approach, though timing can affect your deadlines. Our team can outline best practices and timing considerations for your situation.
Additional Considerations:
Let us know if there are states where you do not plan to re-register.
Numeral fees: $150 per state registration and $150 per account closure.
If you’d like us to mirror your current registrations, simply confirm via email and we’ll take care of it.
State registrations and closures usually take about 30 days once all information is submitted, though delays can occur due to state processing times, trailing nexus, or mail communication.
How Nexus May Be Affected by a Business Change or Split
While our team cannot provide direct guidance on how you should proceed—since every situation is unique—our tax research team has put together general insights to help you make an informed decision about where to register under your new entity.
Whether nexus carries over after a business changes or splits depends on how the transition is structured:
Full shutdown and sale of assets: If the original business closes completely and sells all assets to a separate party—even in the same industry—nexus typically does not carry over. The new business would need to establish nexus independently by meeting each state’s economic thresholds.
Internal restructuring or spin-offs: If the original company or parent entity retains ownership and spins off subsidiaries performing the same activities, affiliate nexus may apply. Nexus could carry over due to shared ownership and continuity of operations.
Because the outcome depends on the specific structure of the split, we recommend consulting a legal or tax advisor if you’re unsure how to proceed.
Final Steps with Numeral Support
Once you’ve created your new company profile and determined your timeline, contact us through the messaging widget in your Numeral dashboard. Our team will review your setup and confirm the following details:
Old company name and EIN
New company name and EIN
Last filing period for the old entity
Liability start date for the new entity
After this review, a member of our team can assist with initiating account closures for the old entity and registrations for the new entity directly in your dashboard.
✅ Tip: Starting early and keeping us informed will help ensure a smooth transition with no filing gaps.
💡 Additional resources with more detailed guidance:
💬 Questions? If you need help with any of the steps outlined above, reach out to our team anytime via the messaging widget in your Numeral dashboard.