Cases where sole proprietorships need to file for a new EIN include:
- If they file for bankruptcy under Chapter 7 (liquidation) or Chapter 11 (reorganization)
- If the business is incorporating
- If a sole proprietor takes in partners and operates as a partnership, OR
- If the business is in the process of establishing a pension, profit sharing, or a retirement plan.
No new EIN is required if a sole proprietor changes the name of the business, the location is changed or a new one is added, or if there are operating in multiple businesses.