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Old 07-13-2017
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Default Using EIN from an old dissolved business?

Outside of eBay, I've had some less-than-successful business ventures in my past... each with its own unique corporate structure and EIN. I've already used some of these to open some business checking accounts for my stealth accounts, and it's worked just fine.

My question pertains to using dissolved businesses (or rather, soon-to-be dissolved businesses), to open a few more business bank accounts. I plan to close some of these old businesses in the coming months and write them off as complete losses on my tax returns, but nonetheless I'd like to use the EINs on them to open some new accounts.

What would happen if I open some bank accounts under a given EIN with plans to operate them long-term, but then shortly thereafter dissolve the business its assigned to? I'm assuming the IRS would get notice that the bank accounts associated with the EIN are still seeing funds inflow into the bank accounts, and that this could potentially cause some issues with them? (obviously, this isn't something I want to do if it causes issues, so I'm just trying to see if anyone else has been in this situation)
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Default Re: Using EIN from an old dissolved business?

In other words, lets assume I open an checking account for LLC X, but then I dissolve LLC X next month. What happens if I continue to use the checking account for LLC X even after I've filed the closing paperwork for it?
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Default Re: Using EIN from an old dissolved business?

I have done this, and it works so as long as the bank or financial institution doesn't do a manual check, or you want to open addl. accounts after the entity is dissolved.
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Default Re: Using EIN from an old dissolved business?

Even if it works, why risk it?

I take business very seriously and I want to be able to sleep at night.

If I were you, I'd be inconvenienced for a little bit in the beginning vs worrying about it for the rest of the life of the account.
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Default Re: Using EIN from an old dissolved business?

Quote:
Originally Posted by nickopedia View Post
I have done this, and it works so as long as the bank or financial institution doesn't do a manual check, or you want to open addl. accounts after the entity is dissolved.
Well, I do think it would work, but my question is mores re: the 'penalties' of doing it (as Sajin suggested). I know it would be pretty straightforward to open some new biz accounts if the biz is not yet dissolved... but if you dissolve the business shortly thereafter but continue to accept funds on the associated bank account, can the IRS flag it? (not the bank)

What's your own personal experience with that?
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Default Re: Using EIN from an old dissolved business?

The IRS doesn't proactively monitor if money is going into a bank account.

As far as I know, EIN's are good forever, I have one that's 25 years old.

Personally, I doubt anyone cases, businesses go out of business all the time and don't close the account.
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Default Re: Using EIN from an old dissolved business?

Hello,

Why dissolve the business?

I understand using OLD EINs for new PP accounts and that works fine but if your going to open a business as an LLC just pay the yearly fees to keep it open and do the taxes for it using the tax forms provided from the Paypal account.

With an LLC it will take you about a day to do the taxes as PP gives you everything you need now and its probably 200.00 - 300.00 to renew with your state.

Clean - Simple - Done

I have 7 of these set up and running
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