When starting a business, it is important to properly account for all expenses that occur as part of the process. Most businesses must have an EIN, or employer identification number, especially when they have employees or regularly utilize independent contractors. Thus, it is beneficial to recognize the expense involved in applying for an EIN to add it to the other startup costs of the business when creating an initial budget.
Most businesses will only need to have one EIN for the life of the business. Even if you change the name or location of your business, the EIN remains the same. There are some situations in which you might have to get a new EIN, such as changing the entity type, declaring bankruptcy or receiving a new corporate charter from the Secretary of State. In this case, you would need to apply for a new EIN, and you might incur a cost for the new application depending on how you proceed.
Fee for an EIN
When you work directly with the IRS, you do not have to pay any application fees for the EIN. However, many people find that the time and effort spent on the application is costly. That is why they pay a fee to work with professionals who file on their behalf. With these companies, it is standard that you pay a one-time fee for their services. They will handle filling out and submitting the application on your behalf. This also typically includes resubmitting an application after receiving an error in most situations. Because an EIN is a one-time application, there is no need for a recurring fee.
You can apply for an EIN online and generally receive the number back within an hour. Then, you can proceed with opening a bank account, applying for credit, applying for certain licenses and hiring employees. Start an EIN application with IRS-EIN-Tax-ID Filing Service or contact to learn more about their services.