If you’re starting a business in Virginia, the first thing you’ll hear about is getting an EIN – the Employer Identification Number. Most people think there’s a big price tag, but the reality is simpler. The federal government gives an EIN for free, and Virginia only steps in when you need specific state services. Below is a clear, no‑fluff guide to keep you from overpaying.
Do You Really Pay for an EIN?
The IRS issues EINs at no cost. You can apply online, by fax, or by mail, and the number is generated instantly on the website. If a website asks for a fee, it’s a third‑party service that is charging for convenience, not for the EIN itself. Save the money and use the free IRS portal – it only takes a few minutes.
When you hear “EIN fee,” it is usually a misunderstanding of the state‑level fees that might arise after you have the EIN. The EIN is just the identifier; anything you pay after that is for a different purpose.
State‑Specific Fees and When They Matter
Virginia does not charge a fee just for having an EIN. However, if you register a corporation, LLC, or partnership with the Virginia State Corporation Commission (SCC), you will encounter filing fees. Those fees cover the formation documents, not the EIN itself. For example, forming an LLC costs $100, and a corporation costs $25 for the Articles of Incorporation.
If you need a Certificate of Good Standing or a Certified Copy of your filing, expect a $5‑$15 charge each time. These are optional documents that some lenders or partners might request, and they are separate from the EIN.
Another situation where money comes into play is a “Virginia Business License” for certain professions or localities. The license fee varies by city or county, ranging from $10 to a few hundred dollars, but again, it’s unrelated to the EIN.
In short, the only real cost you’ll see is the state filing fee for the business entity you choose. Keep the EIN free, and budget only for the entity formation and any extra certificates you might need.
Now that you know the fee landscape, here’s a quick step‑by‑step to get your EIN and avoid extra charges:
1. Go to the IRS EIN online portal and complete the short form. No credit card, no hidden costs.
2. Note your EIN and store it safely – you’ll need it for tax filings and opening a bank account.
3. Register your business with the Virginia SCC. Pay the applicable formation fee (usually $100 for an LLC).
4. If a lender asks for a Certificate of Good Standing, request it online and pay the small $5 fee.
5. Keep receipts of all state fees for your records and tax deductions.
By following these steps, you’ll spend only what the state requires and avoid unnecessary third‑party charges. The bottom line: the EIN itself is free; any cost you encounter comes from forming or licensing your business in Virginia.
Got more questions about Virginia business costs? Feel free to leave a comment or reach out – we’re here to help you keep your startup budget in check.
Securing an Employer Identification Number (EIN) is an essential step in establishing a business in Virginia. While the process itself is straightforward, many entrepreneurs wonder about the associated costs and the necessary steps to obtain an EIN. From understanding what an EIN is and why it is vital for businesses to exploring the application process and possible fees, this article delves into every aspect of acquiring an EIN in Virginia, offering practical tips and insights for new business owners.
