Lately, I’ve had several clients contact me to say that they had to pay a fee for their Employer Identification Number (EIN).
This was perplexing to me, since applying for an EIN has always been free.
So, I did some research, and discovered that if you do a web search for EIN, you may be taken to a company website that charges a fee (average seems to be $150-200) to apply for an EIN.
Now, I suppose that if you are in a hurry and need your EIN immediately to apply for a bank loan or if a big client is requesting an EIN before they will hire you, it might be worth it to pay the fee to expedite your application.
But if you are applying for an EIN because you are starting a new business, or you are incorporating or chaning your business entity, and you don’t need the EIN right away, I don’t see any reason to pay up to $200 for an EIN.
So, how do you get your EIN for free? Just go to the IRS website, at www.irs.gov. Once at the IRS website, click on SS-4 under Most Requested Forms.
For instructions on how to complete the form, and where to mail (or fax) the completed form, download the instructions for Form SS-4 at http://www.irs.gov/pub/irs-pdf/iss4.pdf.
The form only takes a few minutes to complete, and best of all, it’s FREE!
