You can change your business name in two ways: file a DBA (doing business as) for a new trade name, or update your legal name with your state and the IRS. Here is what each path requires.
At a glance:
- You can change a business name legally, or use a DBA for a trade name without a full legal change.
- A legal name change usually does not require a new EIN if ownership and entity type stay the same.
- For federal taxes, notify the IRS on your current return or with a signed letter to your filing address.
- Partnerships use Form 1065; S corporations use Form 1120-S; C corporations use Form 1120 (check the name change box on page 1).
- A DBA alone generally does not require IRS notification; you still file under your legal name and EIN.
Can you change the name of an existing business?
Yes. Common reasons include:
- Rebranding after buying a business or as it evolves. A DBA may be a good option here.
- Upscaling from a sole proprietorship to an LLC or corporation, which may mean adding “LLC” or choosing a new name.
- Trademark violation if you unintentionally chose a name already trademarked.
- Any other reason, such as a name that is too confusing, generic, or hard to spell.
Can you change the name and keep the same EIN?
According to the IRS, changing your business name does not automatically require a new employer identification number (EIN). A new EIN may be required if you change ownership or legal structure, such as adding or removing owners or incorporating a sole proprietorship. For details, see the IRS business name change page and Publication 1635, Understanding Your EIN.
How much does it cost to rename your business?
Costs vary, but budget for:
- Filing fees for name change paperwork with your state and local government
- Experts to help update contracts, permits, or other legal documents
- Checking availability for trademarks, domain names, etc.
- Redesigning marketing and business materials (business cards, signs, website, and more)
DBA for sole proprietors and general partnerships
If you do not have a formal business entity, you and your business are one and the same, but you can still register a fictitious business name (trade name or DBA). Filing a DBA lets you operate under a different name without officially changing it. It usually requires less paperwork and lower fees than a legal name change; you typically file through your local, state, or county agency and pay a fee.
Important: A DBA is a trade name, not a legal name change. You can use it on invoices, signs, and marketing materials, but you still file federal taxes under your legal business name and existing EIN. The IRS generally does not need separate notification just because you added a DBA.
DBA for LLCs and corporations
You can file for a DBA as an LLC or corporation to conduct business under a different name. A trade name does not replace your legal business name for tax purposes; you still file under your LLC or corporation name and EIN. Only a legal name change on your state paperwork requires IRS notification.
DBA vs. legal business name change
| DBA (trade name) | Legal name change | |
|---|---|---|
| What changes | Public operating name | Official entity name on state records |
| IRS notification | Usually not required | Required |
| Tax filing name | Legal entity name + EIN | New legal name + same EIN (in most cases) |
| Typical use | Rebrand without restructuring | Permanent official rename |
Process for changing a legal business name
1. Research your new business name.
Search the U.S. Patent and Trademark Office database to make sure your desired name is not already trademarked, and check your state’s database too.
2. Notify your state and local government.
Notify your Secretary of State using your state’s form (a fee usually applies). Contact local agencies and update any business licenses and permits.
3. Notify the IRS.
How you notify the IRS depends on your business type:
- Sole proprietorships and single-member LLCs: Send a signed letter to the IRS at the address where you file your return, from the business owner or an authorized representative.
- Partnerships and multi-member LLCs: If you have not filed yet, check the name change box on Form 1065 (Page 1, Line G, Box 3) and use your new name. If you already filed for the current year, send a signed letter from a partner to the same address.
- S corporations: If you have not filed yet, check the name change box on Form 1120-S (Page 1, Line H, Box 2). If you already filed, send a signed letter from a corporate officer to your filing address.
- C corporations: If you have not filed yet, check the name change box on Form 1120 (Page 1, Line E, Box 3). If you already filed, send a signed letter from a corporate officer. The IRS may ask for a copy of your state’s Articles of Amendment showing the new legal name.
You can also ask the IRS to confirm they received your name change. For the full breakdown by entity type, see the IRS business name change page.
Tax tip: A legal name change can update your IRS name control (the short code the IRS uses to match your EIN). If your e-filed return is rejected due to a name/EIN mismatch and your EIN is correct, you may need to file again and check the name change box.
4. Notify everyone else.
After approval and notifying your state and the IRS, notify banks, creditors, vendors, suppliers, employees, and customers. Update branding and marketing materials such as stationery, signage, business cards, social media, and your website.
Business name change FAQs
Do I need a new EIN if I change my business name?
You generally do not need a new EIN when you change your business name but keep the same ownership and legal structure. A new EIN is typically required only when your entity type or ownership changes, such as incorporating a sole proprietorship or adding or removing partners.
How do I notify the IRS of a business name change?
Either on your current-year return or by sending a signed letter to the address where you file. Sole proprietorships and single-member LLCs send a letter from the owner or authorized representative. Partnerships check the name change box on Form 1065 (Page 1, Line G, Box 3). S corporations use Form 1120-S (Page 1, Line H, Box 2), and C corporations use Form 1120 (Page 1, Line E, Box 3).
What is the difference between a DBA and a legal business name change?
A DBA (trade name) lets you operate under a different public name without changing your legal entity name on state formation documents. A legal name change updates your official business name with your state and requires IRS notification. You still file federal taxes under your legal name and EIN even when you use a DBA.
Do I need to tell the IRS if I only add a DBA?
Generally no. A DBA is a trade name, not a legal entity change, so you keep filing under your existing legal business name and EIN. You should still update banks, vendors, and other accounts to keep records consistent.
Can I change my business name without forming a new LLC or corporation?
Yes. You can file a DBA to change how customers see your business, or change your legal name through your state’s amendment process if you already have an LLC or corporation. A DBA is usually faster and cheaper; a legal name change requires state approval and IRS notification but updates your official formation documents.
What happens if my business name on my tax return doesn’t match my EIN?
The IRS matches your business name to your EIN, so a mismatch can delay processing or cause an e-file rejection. If you changed your legal name, notify the IRS before filing or check the name change box on your return. If you e-file and get a name/EIN mismatch error with a correct EIN, you will likely need to refile and confirm the name change box is checked.
This article is for informational purposes only and not legal or financial advice.