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. It's essential for various business activities, including opening a business bank account, hiring employees, filing business tax returns, and applying for certain business licenses. Many entrepreneurs wonder about the cost associated with obtaining this crucial identifier. The good news for US-based businesses is that applying directly through the IRS is entirely free. However, the landscape of obtaining an EIN can seem complex, leading some to consider third-party services. These services often bundle EIN applications with other business formation steps, such as LLC or corporation registration. While they offer convenience, they come with a fee. Understanding the direct IRS process versus using a service provider is key to knowing the true cost and value proposition. This guide will break down the costs, methods, and considerations for getting your EIN.
Start your formation with Lovie — $29/month, everything included.