An Employer Identification Number, or EIN, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for identification purposes. It's often referred to as a Federal Tax Identification Number, and it's crucial for businesses to have one for various operational and tax-related activities. Many entrepreneurs wonder about the cost associated with obtaining this essential identifier. This guide clarifies the exact cost of an EIN and provides insights into why it's a free service from the IRS, while also highlighting how professional services can streamline the application process. Understanding the EIN's role is fundamental to business formation. It's akin to a Social Security number for your business, allowing the IRS to track tax obligations. Whether you're forming an LLC in Delaware, a C-Corp in California, or a sole proprietorship in Texas, an EIN is often a prerequisite for opening a business bank account, hiring employees, or filing business tax returns. The perceived complexity of the application process often leads business owners to seek assistance, raising questions about associated fees. Let's break down the cost, or rather, the lack thereof, for obtaining an EIN directly from the IRS.
Start your formation with Lovie — $29/month, everything included.