How Much Does It Cost To Get An Ein
How Much Does It Cost To Get An EIN? (The Ultimate Guide to Obtaining Your Free Tax ID)
Starting a new business is an exciting journey, but it often comes with a laundry list of administrative tasks. Near the top of that list for many entrepreneurs is obtaining an Employer Identification Number (EIN), sometimes referred to as a Federal Tax Identification Number.
You might be worried about unexpected expenses. After all, government processes often involve fees. So, let's get straight to the burning question you searched for: How much does it cost to get an EIN?
We have fantastic news. For the vast majority of applicants, the answer is absolutely nothing. Zero. Zilch. Applying for and receiving an EIN directly from the Internal Revenue Service (IRS) is entirely free.
However, the landscape gets a little confusing because there are third-party services that charge a significant fee to handle the process for you. This guide will clarify exactly why the EIN is free, how to get it without paying a dime, and when (if ever) you might encounter costs.
The Good News: Applying Directly to the IRS is Free
If you are applying for an EIN for a business or entity located in the United States or U.S. Territories, the IRS provides this service at no cost. The IRS views the EIN as a necessary identifier for tax administration, much like a Social Security Number for an individual, and therefore does not charge an application fee.
The key to keeping the cost of getting an EIN at zero is to go straight to the official source: the IRS website or official forms.
The Official IRS Online Application Process
The fastest and most popular method for obtaining an EIN is through the IRS online portal. This method is instantaneous, meaning your EIN is issued immediately upon completion of the application, provided the business principal has a valid Taxpayer Identification Number (TIN).
Before you jump online, make sure you meet a few important requirements:
- Responsible Party: The applicant must be the responsible party (the person who controls, manages, or directs the entity and disposes of funds).
- SSN or ITIN: The responsible party must have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
- U.S. Location: The principal business must be located in the U.S. or a U.S. Territory.
- Timing: You can only receive one EIN per responsible party per day.
Since the entire process is automated and handled digitally by the IRS system, there are no hidden charges or processing fees involved. Remember to use the official IRS website (irs.gov) to begin your application.
Alternative Free Application Methods
While the online application is the simplest route, the IRS understands that not everyone can apply digitally, particularly if the responsible party is outside the U.S. or if there are special circumstances requiring mailing or faxing the application.
These methods also confirm that how much does it cost to get an EIN remains zero, though you might incur minor postage or faxing fees:
- Mail (Form SS-4): You can fill out Form SS-4 and mail it to the appropriate IRS office. Processing time is usually several weeks.
- Fax (Form SS-4): Faxing the SS-4 form results in faster turnaround time compared to mailing, usually about four business days.
- Telephone (International Applicants Only): If the responsible party is located outside the U.S., they can apply by phone, though they must be prepared to answer all questions on Form SS-4.
In all these cases, the fee charged by the IRS for the actual EIN issuance is waived. You only pay for the method of delivery, if applicable.
Why You Might Pay: Understanding Third-Party Services
If the application is free, why are you seeing dozens of websites charging $50, $150, or even $300 to help you get an EIN? This is where many entrepreneurs get confused about the actual cost.
These entities are not the IRS. They are private companies that offer a service to streamline the bureaucratic process. They charge a substantial fee for convenience, not for the EIN itself.
What Do These Paid Services Actually Do?
Third-party services often market themselves heavily, making it seem like their involvement is mandatory. In reality, they are generally providing administrative assistance and package deals.
They might bundle the EIN application with services like:
- State Formation Paperwork: Filing your Articles of Organization or Incorporation with your state.
- Registered Agent Services: Providing a legal address where your business can receive official documents.
- Application Review: Double-checking your information on the SS-4 form to minimize errors before submission.
- Filing Assistance: Acting as the third party authorized to submit the Form SS-4 on your behalf.
If you only need an EIN and your business is simple, paying these fees is likely an unnecessary expense. However, if you are forming an LLC or Corporation, these third-party companies can save you time by handling all the state and federal filings simultaneously.
When Should You Consider Paying?
While the goal is often to minimize startup costs, there are a few specific situations where utilizing a paid service might make practical sense:
- Foreign Responsible Party (Without SSN/ITIN): If the responsible party does not have an SSN or ITIN, they cannot use the online portal. They must file via mail or fax, or they can appoint a U.S.-based third party to act as their designee, which often incurs a service fee.
- Time is Critical: If you are extremely short on time and need to package the EIN application with state incorporation paperwork, a paid service offers a one-stop shop convenience.
- Anxiety over Forms: If you find government forms confusing or overwhelming, paying a service for their expertise and review might give you peace of mind.
Even if you use a paid service for other needs (like LLC formation), always scrutinize the invoice to see exactly how much does it cost to get an EIN specifically, versus the cost of their other administrative labor.
Avoiding Scams and Unnecessary Fees
Because the cost of getting an EIN is officially zero, any entity demanding payment for the actual tax ID itself is misleading you. It's crucial to understand the difference between a paid convenience service and a potential scam.
The IRS will never charge you to process the Form SS-4 application, regardless of whether you are applying for a corporation, an LLC, a partnership, or a non-profit organization.
Key Takeaways for Cost Avoidance:
Remember these simple rules to ensure you don't overpay:
- Official Domain Check: Always confirm you are on the official government website (irs.gov) before submitting sensitive information or assuming a payment is required.
- Direct Application: If you have an SSN/ITIN, applying online takes about 15 minutes and is immediately free. There is no faster or cheaper option.
- Service Separation: If you use a lawyer or a formation company, ask for a detailed breakdown. The fees should be for their time (labor), not for the EIN itself.
- No Renewals: Once you receive your EIN, it is permanent and never needs to be renewed. Therefore, there are no ongoing costs associated with maintaining an EIN.
By understanding these facts, you can confidently tell anyone who asks that how much does it cost to get an EIN is a trick question—it's free when you handle it yourself.
Conclusion: The True Cost of Getting Your EIN
The confusion surrounding the cost of obtaining an Employer Identification Number is common, but the answer is crystal clear: applying for an EIN directly through the Internal Revenue Service (IRS) using the official online application system, or via mail/fax using Form SS-4, costs $0.
The only time you will incur an expense is if you choose to hire a third-party company, a lawyer, or an accountant to handle the filing paperwork on your behalf. In that scenario, you are paying for their professional time and convenience, not the tax ID number itself.
Now that you know how much does it cost to get an EIN (nothing!), you can confidently move forward with establishing your business without worrying about this particular government expense.
Frequently Asked Questions About EIN Costs
- How long does it take to get an EIN?
- If you apply online during standard operating hours (typically Monday through Friday), your EIN is issued instantly and displayed on your screen. If you apply via fax, it takes about four business days. If you mail the application, it can take four to five weeks.
- Why do some websites charge $200 for an EIN?
- These are third-party service providers (often called formation companies) who are charging for their labor, not the EIN itself. They are completing the SS-4 form on your behalf and may bundle it with other services like state incorporation filings or registered agent services. The cost is for their convenience and administrative work.
- Are there maintenance or renewal fees for an EIN?
- No. Once the IRS assigns an EIN to your business, it is yours permanently. There are absolutely no annual maintenance, renewal, or recurring fees associated with maintaining your Employer Identification Number.
- Does the cost to get an EIN change if I have an LLC versus a Corporation?
- No, the IRS does not charge a fee based on your business structure. Whether you are forming an LLC, a corporation, a partnership, or a non-profit, the cost to obtain the EIN directly from the IRS remains free.
- I don't have an SSN. How much does it cost to get an EIN?
- If you do not have an SSN or ITIN, you cannot use the free online application. You must file via mail or fax (Form SS-4). The EIN itself is still free, but you might need to appoint a third-party designee (like an attorney or specialized service) to handle the filing if you are located internationally, which would involve paying the designee's service fee.
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