How to Get Your EIN: IRS Direct vs Formation Services
An EIN is your business's tax ID number. You need it for your bank account, tax filings, payroll, and most vendor accounts. Getting one from the IRS is free and takes five minutes online. Do not pay anyone to do this for you.
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The Quick Answer
Get your EIN directly from the IRS at irs.gov. It costs $0, takes five minutes, and you receive your EIN instantly. Formation services that charge $50-$75 to obtain your EIN are doing the same thing you can do yourself in less time. The only reason to let a formation service handle it is if you want everything in one transaction and are already paying for their package.
IRS Direct vs Formation Service: Side-by-Side
IRS Direct (irs.gov): $0 cost. 5 minutes. Instant EIN confirmation. Requires U.S. citizen or resident with SSN or ITIN. Best for everyone with a U.S. SSN.
Formation Service (ZenBusiness, Bizee): $40-$75 add-on. 1-5 business days. They apply on your behalf and forward the EIN. Best for non-U.S. founders who cannot apply directly, or founders who want to bundle everything.
Phone Application: $0 cost. 30 minutes by phone. Best for anyone who cannot complete the online form.
Step-by-Step: IRS Online Application
1. Go to irs.gov and search for the EIN online application or EIN Assistant. 2. Select your entity type (LLC, sole proprietorship, corporation). 3. Enter your business information — legal name, state, responsible party name and SSN. 4. Answer the brief questions about business activities. 5. Review and submit. 6. Your EIN appears immediately on the confirmation screen. Save it as a PDF. The application is available Monday through Friday, 7am to 10pm Eastern time.
When to Use a Formation Service for Your EIN
Pay a formation service for EIN assistance only if: you are a non-U.S. citizen without an SSN or ITIN and must apply by phone or mail, you have already paid for a formation package that includes EIN service, or you prefer to handle all formation tasks through a single vendor. Otherwise, do it yourself.
Common Mistakes to Avoid
Do not apply before your LLC is formed — the EIN is assigned to your legal entity, which must exist first. Do not pay third-party websites that rank above the IRS site — they are resellers charging for a free service. Do not lose your EIN confirmation letter — banks and government agencies will ask for it. If you lose it, call the IRS Business Specialty Tax Line to retrieve it.
The Verdict
Do it yourself at irs.gov. Free, instant, and no different from what a formation service does on your behalf. The five minutes you spend is the best return on time in your entire business formation process.
How to Get Started
Have your LLC's legal name, state, and your personal SSN ready. Go to irs.gov and navigate to the EIN online application. Complete the form, save your confirmation letter as a PDF, and store it with your other formation documents. You will need it when you open a bank account.
RECOMMENDED TOOLS
IRS EIN Application
Free, instant EIN directly from the IRS
ZenBusiness
EIN service available as an add-on to formation packages
Bizee
EIN obtainment included in formation packages
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FREQUENTLY ASKED QUESTIONS
Can I apply for an EIN before my LLC is approved?
Technically you can, but it is not recommended. The EIN should be tied to your legal entity name. Apply after your Articles of Organization are approved.
Do I need a new EIN if I change my business structure?
Sometimes. Converting a sole proprietorship to an LLC requires a new EIN. Adding or removing partners may require one too. Check with the IRS or a CPA when changing structures.
Is an EIN the same as a state tax ID?
No. Your EIN is a federal tax ID. Many states also require a separate state tax ID for sales tax or employer withholding. Your state's Department of Revenue handles state tax ID registration.
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