An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, 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 essentially a Social Security number for your business. If you plan to hire employees, operate as a corporation or partnership, file certain tax returns, or open a business bank account, you will likely need an EIN. Many entrepreneurs wonder about the cost associated with obtaining an EIN. The good news is that applying directly through the IRS is completely free. However, there are instances where businesses opt for third-party services, which do involve a fee. This guide will break down the costs involved, explain the free IRS application process, and help you decide the best route for your business formation needs.
Start your formation with Lovie — $29/month, everything included.