The Hidden Risks of Paying for EIN Services — And When It Might Actually Be Worth It

Applying for a Federal Employer Identification Number (EIN) is one of the first steps for any new business owner. Whether you’re starting a small business, forming an LLC, or planning to hire employees, you’ll need an EIN to pay taxes, open a business bank account, and establish credibility.

Here’s the catch: an EIN is free if you apply directly through the IRS. Yet, many business owners end up paying third-party services to get one. Why? Convenience, speed, and peace of mind. But not all services are created equal.

In this article, we’ll explore the risks of paying for EIN services, the scams you should watch out for, and the situations where a paid EIN service (like Smart Filing) actually makes sense.

What Is an EIN and Why Do You Need One?

An Employer Identification Number (EIN) is a unique nine-digit number issued by the IRS to identify a business for tax purposes. Think of it as your business’s Social Security Number.

You’ll typically need an EIN if you:

• Hire employees
  
  
• Open a business bank account
  
  
• File taxes for your LLC, Corporation, or Partnership
  
  
• Apply for business credit or licenses
  
  

How to Get an EIN for Free (Directly from the IRS)

The IRS offers EIN applications for free on its website. You can apply:

• Online (fastest, but limited to U.S. applicants, during IRS hours)
  
  
• By Fax (about four business days)
  
  
• By Mail (can take up to four weeks)
  
  

Pros of applying directly:

• No cost
  
  
• Official government source
  
  

Cons of applying directly:

• Limited IRS support (and government websites can be confusing)
  
  
• Strict session timeouts online
  
  
• Processing delays (especially for international applicants)
  
  

The Risks of Third-Party EIN Services

Unfortunately, many entrepreneurs searching for “apply for EIN online” end up on third-party websites that look like official IRS portals.

Here are the risks to watch out for:

1. Impersonation Scams
   Some sites use IRS-like branding and charge $200–$300 for a free service. The FTC has even issued warnings about misleading EIN providers.
   
   
2. Hidden Fees
   You may see “$49 for EIN” upfront, but once you start, extra charges for “expedited service” or “document delivery” appear.
   
   
3. Data Security Concerns
   You’re sharing sensitive business information (name, SSN, business address). Untrustworthy providers put that at risk.
   
   
4. No Real Support
   Many low-cost services simply re-submit your data through the IRS portal—and disappear once they collect payment.
   
   

When Paying for an EIN Service Makes Sense

While you can apply for free, there are legitimate reasons why entrepreneurs pay for EIN services:

• Convenience: If you don’t want to deal with IRS forms, a trusted service takes care of it.
  
  
• Speed: Some services, like Smart Filing, process EIN requests within one business day.
  
  
• International Applicants: Non-U.S. business owners often face extra steps with the IRS. A paid service smooths this process.
  
  
• Peace of Mind: If you’re already overwhelmed with launching your business, outsourcing EIN filing is one less task on your plate.
  
  

Smart Filing vs. IRS EIN Application: A Quick Comparison

How to Protect Yourself When Choosing an EIN Service

If you decide to use a third-party service, here are a few tips:

• Check the URL: Only the IRS uses .gov domains.
  
  
• Read Reviews: Look for real customer feedback on Trustpilot, Google, or BBB.
  
  
• Understand the Fee: Make sure pricing is transparent, with no hidden add-ons.
  
  
• Choose Reputable Providers: Services like Smart Filing clearly state they are not the IRS, provide real support, and deliver EINs quickly.
  
  

Final Thoughts

Getting an EIN is a necessary step for every entrepreneur, and yes—it’s free through the IRS. But free isn’t always easy. For many business owners, the time savings, support, and peace of mind of a trusted paid service like Smart Filing is worth the investment.

If you want to skip the IRS paperwork and get your EIN quickly, securely, and with expert guidance, Smart Filing is here to help.

Apply for your EIN with Smart Filing today and get your business on the right track—fast.