What Is a Tax ID Number (EIN)?
A Tax ID number or EIN is issued by the Internal Revenue Service (IRS) to identify your business for tax purposes. Whether you’re forming an LLC, corporation, or partnership, you typically need an EIN to open a bank account, hire employees, or file taxes.
Is a Tax ID Number Free?
Yes, if you apply directly through the IRS, obtaining an EIN is completely free. There are no government fees involved in getting one for your business.
You can apply:
- Online via the IRS website (for eligible applicants)
- By fax or mail (especially for non-U.S. residents)
Why Do Some Services Charge for a Tax ID Number?
While the IRS doesn’t charge for EINs, third-party companies (like business formation services) charge a processing fee if they apply on your behalf. These fees usually cover:
- EIN application preparation
- Communication with the IRS
- Follow-up support
- Assistance for non-residents or complex structures
Typical third-party charges range from $75 to $250, depending on the provider and services offered.
Should You Pay for an EIN?
It depends. If you’re a U.S. citizen with a Social Security Number (SSN), you can apply on the IRS website quickly and for free.
However, if you:
- Are a non-resident without an SSN or ITIN,
- Need help understanding IRS forms,
- Want a faster, hassle-free process—
Then using a paid EIN service can save you time and reduce errors.
Bottom Line: What’s the Real Cost?
- IRS Cost: $0 (free)
- Third-Party Cost: $75 – $250 (optional convenience fee)
So, to answer the question “how much is a tax ID number?” — it’s free if you apply yourself, but expect to pay a service fee if you choose expert help.
