Rename, Close, or new business - Tax ID in USA

Discussion in 'Accounting and Taxes' started by Steverd, Jan 28, 2012.

  1. Steverd

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    Jan 27, 2012
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    My small plant nursery business has shown a lost for the last six years.

    My tax accountant is not too worried about an audit. He says we can show that we are
    a real business and not just a hobby from our records and the building we built etc.

    OK, my question is since I've shown a lost for so many years I want to close the place for
    a year or so and go a different direction. I could change the business name, but that would
    leave me with the same tax ID number. Would that be a problem, (IRS)since the past business lost.
    Or start a new business and try to get a new TAX ID number? Would that give me a fresh start?

    Hope that's not all too confusing.
  2. James Greg

    James Greg
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    Jun 13, 2011
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    Hi Steve and welcome to the forum. If you have made the decision to go a different direction I think you must get a fresh start unless your previous records can benefit you in any way. As the current nursery business is losing and isn't making a too good reputation there's nothing to lose by not mentioning it in your future plans.

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