How much should I pay for an EIN? My opinion is $0. Hopefully that means something because I’m a lawyer. I’m a business lawyer, and I obtain EINs for businesses all the time. It takes me approximately 5 minutes to do this. Because of its ease, I simply include it in the flat rate formation fee I charge any formation client.
What is it?
You use EINs, or employer identification numbers, in the business context as your tax identification number. Like US citizens have social security numbers, businesses have EINs. Many businesses can operate using the owner’s social security number, but it is always recommended to have an EIN instead. LLCs and corporations must have an employer identification number.
You use the tax ID on your government and banking documents. You also often provide W-9s and/or 1099s to vendors or clients, which would include your tax ID. Therefore, it is best to avoid using your Social Security Number!
How to Get a Free EIN
Since we don’t want you to pay for this, we wrote an article showing you how! The IRS application is actually very straightforward and includes a lot of extra instructions for people who need more information.
How We Do It
When our clients hire us for an LLC or corporation formation, we obtain the necessary tax ID as part of the package. Unlike those national formation sites, we feel our clients should get everything necessary with the basic package. In the end, we actually end up costing around the same or less than those formation sites simply because we don’t charge you separately for the EIN.
Hopefully this article helped you understand the value of an EIN and showed you that you should never pay for one. Even if you use the national formation sites, get your tax ID on your own and save $80.
Richard is the managing attorney for Law Plus Plus, a local small business law firm. As managing attorney, he helps small businesses and nonprofits startup, creating the contracts, and navigate the legal needs of businesses. Some of his practice areas include: corporate, contract, mergers & acquisitions, corporate litigation, and estate planning.