[{"@context":"https:\/\/schema.org\/","@type":"Article","@id":"https:\/\/moneydoneright.com\/taxes\/business-taxes\/cost-for-ein\/#Article","mainEntityOfPage":"https:\/\/moneydoneright.com\/taxes\/business-taxes\/cost-for-ein\/","headline":"How Much Does an EIN Cost? (All You Need to Know)","name":"How Much Does an EIN Cost? (All You Need to Know)","description":"Getting accurate information should be your main priority when setting up a new business....","datePublished":"2023-03-26","dateModified":"2023-03-26","author":{"@type":"Person","@id":"https:\/\/moneydoneright.com\/author\/logan-allec\/#Person","name":"Logan Allec, CPA","url":"https:\/\/moneydoneright.com\/author\/logan-allec\/","identifier":4,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/6e74dd0453a5871d1dcfde6d40d9494765ca8bfdb01927cefee4564d4bee9075?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/6e74dd0453a5871d1dcfde6d40d9494765ca8bfdb01927cefee4564d4bee9075?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Money Done Right","logo":{"@type":"ImageObject","@id":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Money-Done-Right-Personal-Finance-and-Investing-Blog.png","url":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Money-Done-Right-Personal-Finance-and-Investing-Blog.png","width":488,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/moneydoneright.com\/wp-content\/uploads\/cost-for-ein.png","url":"https:\/\/moneydoneright.com\/wp-content\/uploads\/cost-for-ein.png","height":460,"width":1900},"url":"https:\/\/moneydoneright.com\/taxes\/business-taxes\/cost-for-ein\/","about":["Business Taxes"],"wordCount":1353,"articleBody":"Getting accurate information should be your main priority when setting up a new business. That\u2019s why you shouldn\u2019t trust sources that claim the cost for EIN is high because the IRS offers this service for free.However, before you start worrying about the costs, you must determine if you need the Employer\u2019s Identification Number to run a business.The IRS doesn\u2019t require all types of businesses to have EIN which means under certain circumstances you can file federal tax for your business with your Social Security Number.\u00a0In this article, we\u2019ll discuss the advantages of obtaining EIN and give you an accurate estimate of associated costs.Table of ContentsToggleWhat is EIN?Who Needs an EIN?The Advantages of Obtaining an EINMeeting the Requirements for an EIN ApplicationApplication MethodsA Quick Guide through Online EIN Application ProcessEIN Application FeesFrequently Asked QuestionsTalk to a CPAWhat is EIN?The Employer\u2019s Identification Number is a 9-digit number assigned to businesses registered in the United States in order to identify them and enable them to file federal taxes.\u00a0The terms Federal Tax ID and Federal Employer\u2019s Identification Number are also used to denote this unique number.\u00a0Moreover, EIN can help you secure funding for your business because it is required by most financial institutions that approve grants, lines of credit, and business loans.Who Needs an EIN?Assuming that all types of businesses need EIN can be misleading.\u00a0Speaking from a strictly legal standpoint the IRS doesn\u2019t require single-member LLCs and sole proprietorships to have EIN because, in both business models, the owner of the business is the only employee.\u00a0Hence, you can use your Social Security Number instead of EIN to file federal taxes if you choose to start a sole proprietorship or a single-member LLC.\u00a0All other types of businesses must have EIN, so if you want to start an LLC, a corporation, a nonprofit organization, or a partnership you must obtain EIN.Moreover, you\u2019ll need this number to hire employees and withhold taxes for their salaries and wages regardless of the business model you choose.The Advantages of Obtaining an EINEven though the owners of single-member LLCs and sole proprietorships aren\u2019t required to have EIN by the law, they might find it challenging to manage their business without this number.Obtaining EIN will enable you to:Open a business bank account. Optionally, you can use your Social Security Number.Have more than one employeeAcquire licenses and permits for your businessFile state and federal taxes. Sole proprietorship and single-member LLC owners can file taxes with SSNs if they employ only one employee.Moreover, you\u2019ll need EIN if you want to have a 401(K) or Keogh retirement plan even if your business isn\u2019t legally required to have one. Single-member LLCs and sole proprietorships with EIN have limited funding opportunities as they cannot apply for loans or open a line of credit.\u00a0Acquiring EIN will also ensure that your personal credit score doesn\u2019t affect your business\u2019 credit eligibility.Meeting the Requirements for an EIN ApplicationYou must have a registered business within the United States and US Territories and a valid SSN to apply for EIN. Optionally, you can use the Taxpayer Identification Number instead of the SSN.The IRS allows businesses of all sizes to apply for EIN, so you can obtain this number regardless of how many employees your business has. In case you don\u2019t have SSN, you\u2019ll have to apply for TIN before continuing with the EIN application process.Application MethodsThe IRS allows new business owners to choose the EIN application method. Hence, you can apply for EIN online, by mail, telephone, or by fax.You can apply for EIN online if you have SSN and a business registered in the US. Remember, the responsible party must be an individual and you cannot use an entity as the responsible party on your application.You\u2019ll have to fill out Form SS-4 if you decide to submit your application via mail or fax. The IRS will need up to four days to approve an application submitted via fax, while you\u2019ll have to wait up to four weeks to obtain an EIN if you submit your application via mail.International applicants with registered businesses in the territory of the United States can apply for EIN by phone. The IRS has a toll-free number 267-941-1099 that is available from Monday through Friday between 6 am and 11 pm Eastern Time.\u00a0The person making the phone call must be able to answer all questions from Form SS-4 correctly.A Quick Guide through Online EIN Application ProcessNow that you have all the information you need to prepare for the application process, let\u2019s walk through the steps you\u2019ll have to take to obtain EIN for your business.\u00a0Please note: The online EIN application expires after fifteen minutes of inactivity, which is why you must complete the application in one go.The process has the following five stages:Identify.Authenticate.\u00a0Addresses.Details.\u00a0EIN Confirmation.During the first stage, you\u2019ll have to select a business type, indicate the state where the business is located, and provide the reason why you\u2019re applying for EIN (e.g. starting a new business, banking purposes, etc\u2026).\u00a0The Authenticate stage of the process involves providing the responsible party\u2019s full name and SSN or TIN. Afterward, you should proceed to specify the business address and other relevant details.\u00a0The IRS system will assess your application and assign you a new EIN while the session is still in progress. Keep in mind that you can\u2019t obtain more than EIN per responsible party per day.EIN Application FeesThe IRS doesn\u2019t charge the EIN application fee, so as long as you have a valid SSN or TIN you can get EIN for your business for free.\u00a0You cannot apply for EIN online if you currently don\u2019t have a TIN or SSN and you\u2019ll have to opt for a different application method. The cost for EIN should remain negligible even if you opt to submit your application via fax or mail since you won\u2019t have to cover application fees.\u00a0Business owners often choose to outsource EIN applications to corporation or LLC services. In case you choose to follow this path, you\u2019ll have to spend between $50 and $300 to apply for EIN.\u00a0These expenses aren\u2019t related to the EIN application but rather to covering the costs of hiring personnel that will complete the application for you. Doing so is unnecessary unless your business has a high number of responsible parties that need EIN.Frequently Asked QuestionsHow Often Do I Have to Renew My EIN? Employer\u2019s Identification Numbers don\u2019t expire. Consequently, you don\u2019t have to renew EIN the IRS assigned to your business.  Can I Apply For EIN Before Registering a Business? Having a registered business within the territory of the United States is one of the conditions you must meet before applying for EIN. As a result, you cannot apply for EIN unless your business is already registered.  What Happens if I Lose My EIN? You\u2019ll have several options if you cannot find your EIN because you can try contacting your bank if you opened an account using EIN, search for tax returns you filed in the last few years, or look for a notice the IRS sent to your email as a confirmation of application.  How Many EINs Can My Business Have? The IRS doesn\u2019t limit the number of EINs it assigns to businesses, which is why your organization can have multiple responsible parties. However, a business cannot obtain more than one EIN per day.  Talk to a CPAApplying for EIN won\u2019t cost you a cent if you go through this process alone. However, this may seem intimidating if this is your first time applying for EIN.\u00a0Go to choicetaxrelief.com or call 866-8000-TAX and schedule a free consultation with a CPA who can guide you through the EIN application process."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Taxes","item":"https:\/\/moneydoneright.com\/taxes\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Business Taxes","item":"https:\/\/moneydoneright.com\/taxes\/\/business-taxes\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"How Much Does an EIN Cost? (All You Need to Know)","item":"https:\/\/moneydoneright.com\/taxes\/business-taxes\/cost-for-ein\/#breadcrumbitem"}]}]