What Is an EIN? It's Free — Don't Pay for It
In this video
- Defines the EIN as the nine-digit federal tax ID the IRS assigns to a business, and lists what asks for it: a US business bank account, tax filings, payroll, and payment processors
- Makes the price point the spine: the IRS issues an EIN at no charge, and paid services are selling convenience rather than access
- Notes that no SSN is not a dead end, which is where the linked guide for foreign founders picks up
Gemini Summary
A 58-second explainer on the EIN: the nine-digit federal tax ID the IRS issues to a business, what it unlocks (a US business bank account, tax filings, payroll, payment processors), and the point of the clip, which is that the IRS issues it at no charge while a lot of sites sell it as a paid service. Stage 1-2 of the LLC Basics series.
Notes
This is a definition clip rather than a filing walkthrough, and the part worth carrying out of it is the price. The IRS does not charge for an EIN through any of its own channels, so anything you pay is for someone else's paperwork rather than for the number.
Two details the clip does not have room for, both of which change what your week looks like. The route matters: applicants with an SSN or ITIN get the number immediately from the online application, while a faxed Form SS-4 generally comes back within four business days and a mailed one takes about four weeks. And the form asks for addresses, which is the part we are in. We do not file EIN applications or sell the number, and nobody should sell it to you. What we sell is the commercial street address that goes on the form and receives the CP 575 confirmation letter afterward.
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