I went to the IRS site and the online assistant gave me an EIN in about ten minutes. No fee, no phone call. I had read about people paying services for this and I don't understand why. Did I miss something? The letter comes in the mail later but the number was issued immediately.
Tax Registration
Getting an EIN directly from the IRS seems straightforward
You didn't miss anything. The online route is free and it works. The only catch I ran into was that the assistant session times out if you stop to look something up, and then you have to start over. Took me two tries because I didn't have my formation date handy.
My situation was different because I'm a non-resident with no SSN or ITIN. The online assistant rejected me and told me to file by fax using Form SS-4. That took almost six weeks and I had to call to confirm they received it. So for some people it isn't ten minutes.
The services charging for it are mostly just filling out the same SS-4 for you. If you can read the instructions, you can do it yourself. I think some people pay because they're afraid of making a mistake on a government form.
Also worth noting the online assistant is only available certain hours. I tried at night and it was closed. Had to come back during the day.
One thing I'd add: the EIN is issued to the entity, not to you personally. If you later change your business structure or form a new LLC, you generally need a new one. I've seen people reuse an old EIN for a new company, and that causes problems down the line with the IRS records.
Is the letter actually required for anything? I got my number online and have been using it for bank accounts and a 1099 without the paper notice.
Some banks ask for the CP 575 letter as proof but many accept just the number. It's good to keep the letter when it arrives. If it never shows up you can request a replacement, though I think that process is slower now.
For what it's worth, my fax confirmation was the only proof I had for weeks. The letter did eventually arrive. I'd say the online assistant is fine if you qualify, but the eligibility rules are stricter than the front page suggests.
I used a paid service years ago before I knew better. It was maybe $75 and all they did was submit the SS-4. The EIN came back fine, but I wouldn't do it again. The IRS instructions are readable if you take your time.
Agreed on the instructions. The main thing is to be consistent with the legal name and the responsible party information. Mismatches are what cause delays, not the form itself.