📅 2026 Update: Key Changes in Employer Identification Numbers

Since the original article was published, there have been important updates related to Employer Identification Numbers (EINs) and business formation. The most significant change is the exemption of domestic companies from certain reporting requirements. This change affects how businesses operate and report ownership in the U.S.

The earlier article continues further down the page for more foundational information.

🏢 Corporate Transparency Act Exemptions

On March 26, 2025, a major update was made to the Corporate Transparency Act. U.S.-formed companies and U.S. persons no longer need to report beneficial ownership information. Only foreign-formed entities registered to do business in the U.S. are required to file these reports. This change simplifies compliance for many domestic businesses.

💰 Current Fees and Costs

State filing fees for articles of incorporation typically range from $50 to $300. The exact amount depends on the state and the number of authorized shares. Additional fees may apply for expedited processing, which many states offer to speed up the filing process.

⏳ Processing Times

Standard processing times for business formation filings can take a few days to several weeks. Expedited processing is available in most states, allowing businesses to complete filings in as little as same-day to 1-3 business days, depending on the service level chosen.

✍️ Steps for Forming an LLC

To form an LLC, follow these steps:

  • Choose a compliant business name.
  • Appoint a registered agent.
  • File articles of organization with your state.
  • Draft an operating agreement.
  • Apply for a federal EIN.

State filing fees for LLCs range from $40 to $500 and processing times vary widely.

📌 Key Takeaways

  • Exemptions from reporting under the Corporate Transparency Act apply to U.S. companies.
  • State filing fees for articles of incorporation range from $50 to $300.
  • Processing times can take a few days to several weeks, with expedited options available.
  • Forming an LLC involves five key steps, with fees ranging from $40 to $500.

💡 Tips for Managing Your EIN and Business Formation

It's important to discuss your specific situation with your attorney to ensure compliance with all regulations.

📑 Understand Your EIN Needs

An Employer Identification Number (EIN) is essential for businesses, especially for tax purposes. Ensure you apply for an EIN once you have formed your business entity.

📋 Keep Filing Fees in Mind

When budgeting for business formation, remember that state filing fees can vary significantly. It's wise to check the specific costs in your state and plan accordingly.

⚡ Consider Expedited Processing

If you need to start your business quickly, look into expedited processing options. Many states offer faster service for an additional fee, which can save you valuable time.

📞 Use Free Resources

Take advantage of free resources like the Small Business Administration (SBA) and SCORE. These organizations provide guidance on starting and managing a business without the cost of professional services.

📝 Draft an Operating Agreement

If you’re forming an LLC, drafting an operating agreement is crucial. This document outlines the management structure and operating procedures of your business.

🏆 Business Formation Services Ranked by User Reviews (2026)

There are many services available to help with business formation and compliance. These services can assist with obtaining an EIN, filing articles of incorporation, and more. The following order is based on Trustpilot data as of October 2026, and scores can change as more reviews come in.

Ratings reflect one aspect of customer satisfaction, and unhappy customers often leave more feedback.

🥇 1. Bizee

Bizee has been rated 4.8. It is known for its LLC formation and registered agent services. Reviewers appreciate its compliance services, making it a solid choice for businesses.

However, it is worth noting that Bizee has limited availability of legal advice and is not a law or accounting firm.

🥈 2. Inc Authority

Inc Authority holds a score of 4.8. It is recognized for offering no-cost Secretary of State registration and various business funding services. Reviewers often mention its user-friendly services for startups.

A caveat is that some users report upselling of additional services, which may not suit everyone’s needs.

🥉 3. LegalZoom

LegalZoom averages 4.6. It is widely known for its business formation services and registered agent offerings. Many customers value its comprehensive service options.

On the downside, some users have reported delays in processing times and concerns about customer support responsiveness.

4️⃣ Rocket Lawyer

Rocket Lawyer has been rated 4.5. It is known for legal document creation and providing legal advice along with business formation services. Users appreciate the variety of legal resources available.

However, the subscription model may not fit all users, and some find the platform complex.

🆓 Free Government Resources

The Small Business Administration (SBA) and SCORE offer free resources for business owners. These organizations provide valuable guidance and mentoring for starting and managing a business without incurring costs.

🔎 What to Compare When Choosing a Business Formation Service

  • 📊 User Ratings: Check Trustpilot or similar sites for service reviews.
  • 💰 Pricing Structure: Look into fees for services, including expedited options.
  • ⚙️ Service Range: Ensure the service offers the specific business formation help you need.
  • ⏱️ Processing Times: Compare how long each service takes to complete filings.
  • 🔍 Customer Support: Assess the availability and quality of support offered.

❓ Frequently Asked Questions

❓ What is an Employer Identification Number (EIN)?

An Employer Identification Number (EIN) is a unique number assigned to businesses by the IRS for tax purposes. It is often required for opening business bank accounts and filing taxes.

🔍 How do I apply for an EIN?

To apply for an EIN, you can fill out Form SS-4 on the IRS website. This form can be submitted online or by mail, and there is no fee for obtaining an EIN.

🕒 How long does it take to get an EIN?

If you apply online, you typically receive your EIN immediately. Mail applications may take 4 to 6 weeks to process.

📝 Do all businesses need an EIN?

Not all businesses need an EIN. Sole proprietors without employees can use their Social Security number instead. However, an EIN is necessary for most other business structures.

🏷️ What are the filing fees for articles of incorporation?

Filing fees for articles of incorporation generally range from $50 to $300, depending on the state and sometimes on the number of authorized shares.

📅 What is expedited processing?

Expedited processing allows businesses to pay an additional fee to speed up the filing of their documents. This can result in same-day service or faster turnaround times compared to standard processing.

⚖️ Recent Court Cases Related to Business Formation

Recent court rulings have influenced how businesses manage their EINs and comply with state regulations. These rulings can affect filing requirements and processes for new companies.

For more insights, you can check for more rulings on the news page.

End of October 2026 Update





What is an Employer Identification Numbers?



An Employer Identification Number, often just called an EIN is a number that is used as a way to identify and individual or a company that needs to pay withholding taxes on their employees.

Employer Identification Numbers

An Employer Identification Number can also be referred to as a:

• Federal Tax Identification number

• Tax Identification number (TIN)

• Federal Employer Identification number (FEIN)

An Employer Identification Number is a nine digit number written in form XX-XXXXXXX. It is unique to a particular employer and is assigned by the Internal Revenue Service for identification purposes.

The two digit prefix of an Employer Identification Number indicates which campus assigned the Employer Identification Number. Before 2001, the two digit prefix indicated the geographic area of the business. However, this is no longer applicable. 

Employer Identification Numbers are used by sole employers, corporations, government agencies, sole proprietors, partnerships, trusts, nonprofit organizations, estates of decedents, certain individuals without employers, and other business entities. Each of these only requires one FEIN number

An employer needs an Employer Identification Number if an employer:

• Has employees

• Is involved in trusts, estates, non-profit organizations, real estate mortgages investment conduits, plan administrators, or farmers’ cooperatives

• Runs the business as a partnership or corporation

• Has a Keogh plan

• Files Excise, Employment, or Alcohol, Tobacco, and Firearms tax returns

• Withholds taxes  other than wages on a non-resident alien employee

If the employer does at least one of these things, a FEIN is required.

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An Employer Identification Number can obtain by completing an application either online, through a toll-free telephone service, through fax or by mail with From SS-4. The internet application is the preferred method for EIN application by customers. Once completed, the FEIN is issued immediately. However, an immediate EIN number can also be received through by phone from 7AM to 10PM local time during the weekdays. Applying by fax takes up to four business days while a mail application takes up to one month.

In certain circumstances, a business may need a new Employer Identification Number. Generally this is due to any sort of structure change or just a change in ownership. Some changes that require Employer Identification Number changes include:

For Sole Proprietors

• Being subject to a bankruptcy proceeding

• Taking in partners and becoming a partnership

• Incorporating

• Purchasing or inheriting an existing business that will be operated as a sole proprietorship



For Corporations

• Receiving a new charter from the secretary of state

• Being or becoming a subsidiary of a corporation using a parent’s EIN

• Changing to a sole proprietorship or partnership

• Creating a new corporation after a statutory merger

For Partnerships

• Partnership becoming a sole proprietorship

• Incorporating

• Ending an old partnership and beginning a new partnership

Avoiding Common FEIN Problems

Many of the common problems involving an Employer Identification Number are experienced by incorrectly filling out paperwork. In order to prevent this, remember to:

• Always include an Employer Identification Number, SSN, or ITIN on Form SS-4

• Use a full legal name on Form SS-4 as well as the EIN provided consistently 

• Inform the IRS of business name changes

• If the company uses a P.O. Box, use that instead of the physical address as the mailing address