How Much Does An EIN Cost?
There’s a lot to consider when you start a company. One is the overall costs of opening your business, whether an LLC or a non-profit organization. Obtaining an Employer Identification Number (EIN), a nine-digit number provided to your business by the IRS for tax purposes is important. But how much does an EIN cost?
It is essential to obtain an EIN, but you might be concerned about what this will add to your costs. In this article, we will explore the potential costs of gaining an EIN and provide you with additional information about this number. If you have recently started a company and want to know the answer to the question “how much does an EIN cost?”, then keep reading to learn more.
Is getting an EIN free?
Luckily for all new businesses, obtaining an EIN is entirely free. You can gain one by applying through the IRS online, by mail, by fax, or over the phone, depending on your company’s requirements.
There may be some cases where you need to pay a fee to gain your EIN, however, this is only if you want to hire someone to help you apply for one. This isn’t a necessary cost, and it is straightforward to apply through the IRS yourself.
What else do I need to know?
An EIN is an essential part of a company, and there are a few extra things you may want to know about obtaining one:
- Who can apply: All new businesses need to apply for an EIN for tax purposes, but the people who can apply on behalf of these businesses include the owner, a corporate officer, a member of an LLC, or a third-party designee.
- Application process: You need to know how to apply for an EIN to get one. Luckily it’s an easy process through the IRS, and you can apply online, by mail, by fax, or over the phone.
- Information required: Various requirements and pieces of information are needed when applying for an EIN. Some of these things include the type of business you are a part of and basic information like the name and address.
- Timing: It is recommended to apply for an EIN as soon as your company has started, but it is recommended that you should file a tax return or make a tax payment first to ensure you meet your tax obligations.
- Use of EIN: The main use of an EIN is for tax purposes, but you can also use it when applying for a business bank account or acquiring a license or permit from the government.
EIN Cost FAQs
How long does it take to get an EIN?
There is no set time in place that states how long it will take to obtain an EIN, and it will usually come down to how you have applied for it. However, here are the different ways you can apply and how long it will take:
- Online: If you go on the IRS website to apply for your EIN, you should receive your nine-digit number immediately if you meet all the requirements.
- Fax: Applying for your EIN through fax will take longer and may take around 4 business days after your application has been received.
- Mail: Mail is the longest application method for your EIN, as it can take up to 4 weeks to receive your number.
- Telephone: When you apply for your EIN over the phone, you should receive it immediately if an IRS representative handles it during business hours.
One more thing that could affect how long it takes to get your EIN is how many applications the IRS is currently handling.
How long does an EIN last?
When you receive an EIN for your business, it will stay with you as long as your company operates as it does not expire.
However, you must regularly update your EIN information, such as your business address, if anything changes. If there is a change to the ownership, name, or structure of your company, you will need to apply for a new EIN.
How can I get an EIN for my LLC?
It is super easy to get an EIN for your LLC or any other company. While it isn’t automatic, you just need to go through the IRS application process. This means sending off your LLC’s confirmation document to the IRS either online, via fax, via mail, or by providing the documentation information over the phone.