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An EIN (Employer Identification Number) is a unique nine-digit number the IRS uses to identify your business for tax reporting purposes.
Unless you’re a sole proprietor or single-member LLC, you’ll need an EIN if you want to open a business bank account. But you may be wondering—is that all you need to open a business bank account?
Can I Open a Business Bank Account With Just an EIN?
In general, the answer is no. While you’ll need an EIN to open a business bank account if your business is set up as a partnership, corporation or LLC with employees—it’s just one of several pieces of information you’ll likely need to provide.
Depending on your business setup, you may also be asked for the following.
- Sole proprietorship: A business license, business legal name, DBA (doing business as) name and any required minimum opening deposit
- Partnership: Business legal name, DBA name, partnership agreement and state certificate of partnership
- Corporation: Business legal name, DBA name and corporate bylaws
- LLC: Business legal name, DBA name and LLC operating agreement.
However, if you’re a sole proprietor or LLC with no employees, you may not even need an EIN to open a business bank account—just your Social Security number (SSN) and ID may be enough to open an account at some financial institutions.
Open a Business Bank Account With an EIN Only
If you want to open a business bank account and you only have an EIN, you still need to gather other documents that your bank will request from you. At a minimum, you’ll need to provide a government-issued ID and your SSN. And some banks may ask you to prove your business is legally registered, even if you’re a sole proprietor.
1. Get Your Documents Ready
Have your EIN, SSN and government-issued photo ID on hand before you go into a bank or apply online. You may also need to have your business license, business legal name, DBA name, LLC operating agreement or corporate bylaws.
2. Choose a Bank
Research the best business bank accounts and find one with the features most important to you. You may want to look for unlimited free transactions, free ACH and wire transfers, low balance minimums and high APYs on deposits.
If you’re applying with only an EIN, consider an online bank or fintech platform like Bluevine, Mercury or Novo. These types of banks may be more lenient when it comes to paperwork. They also tend to have more robust apps and online tools that can make it easier to apply and manage your business accounts using a single platform.
3. Apply In Person or Online
Depending on the type of financial institution, you can either go into a branch or open an account online by uploading your documents. You may also need to make an opening deposit to fund your account.
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Why Do You Need an EIN To Open a Business Bank Account?
Having an EIN proves to your bank that you’re running a legitimate business. That’s why sole proprietors with employees, LLCs, partnerships and corporations are typically required to provide one when applying for a business bank account.
But there are exceptions. Sole proprietors with no employees and single-member LLCs can open a business bank account at many institutions with just an SSN and government ID. That said, it may be easier to open a business account if you have an EIN—even if you don’t technically need one.
Find The Best Business Checking Accounts Of 2024
FAQs
Can I Open a Business Bank Account With Just an EIN? In general, the answer is no. While you'll need an EIN to open a business bank account if your business is set up as a partnership, corporation or LLC with employees—it's just one of several pieces of information you'll likely need to provide.
Can I open business account with EIN only? ›
No, you cannot open a business bank account with an employer identification number (EIN) only. You'll also probably need other business paperwork — like your business license and formation documents — plus personal identification like a driver's license.
Can I use an EIN number for banking purposes only? ›
If you've ever wondered, “Can I use an EIN number for banking purposes only?” then you should know that if you obtain an EIN to open a bank account, you should use it for all other business matters as well.
What information do I need to open a small business bank account? ›
Opening a business bank account requires proof of identification for both you and your business. Examples include your state-issued driver's license or passport, your business license or your partnership agreements. Your business also may need to provide additional materials.
Can you be denied a business bank account? ›
Keep a close eye on both your personal and business credit reports. A business account can be denied because one of the people on the account has poor credit or a history of checking account issues.
Why would a business account be declined? ›
Application Declines Can Stem from Bad Credit, Tax Liens, Prohibited Business Types and More. Applying for a merchant account can be an intimidating process, especially if it is your first time in the marketplace.
Can I use an EIN without an LLC? ›
You can, but you should not. You only need an EIN if you are a business that has employees, so if you have not started the business yet, it is unnecessary to apply for an EIN. There is also a chance that the IRS will reject the application if they do not see your business registered with your state.
Can I use my business EIN instead of SSN? ›
Use your EIN on all of the items that you send to the IRS and the Social Security Administration (SSA). Caution: An EIN is for use in connection with your business activities only. Do not use your EIN in place of your social security number (SSN).
What can I do with my EIN number? ›
This EIN is your permanent number and can be used immediately for most of your business needs, including:
- Opening a bank account.
- Applying for business licenses.
- Filing a tax return by mail.
Details you'll need to apply online:
Business tax ID number: Business Employer Identification Number (EIN) provided by the IRS in the following 9-digit format XX-XXXXXXX. Sole proprietorships may use either their EIN or Social Security Number (SSN)
Most business bank accounts can be opened with $0, but some business checking accounts require an opening deposit, which typically ranges from $25 to $100.
How do I get credit for my business? ›
Eight steps to establishing your business credit
- Incorporate your business. ...
- Obtain an EIN. ...
- Open a business bank account. ...
- Establish a business phone number. ...
- Open a business credit file. ...
- Obtain business credit card(s) ...
- Establish a line of credit with vendors or suppliers. ...
- Pay your bills on time.
How long does it take to open a business bank account? Provided you have all your paperwork in order and good financial standing and credit history, you could get approved to open a business bank account same-day (if going to the bank in person) or in as little as 10 minutes when doing it through online banking.
What disqualifies you from opening a bank account? ›
Bottom Line. The primary reasons people can't open a bank account are negative items on a ChexSystems or Early Warning Services report, errors on the reports or bad credit. If your bank account application is denied, find out why.
What is the minimum credit score for a business bank account? ›
Is My Credit Score Checked for a Business Bank Account? Most business checking accounts don't require a credit check, with the possible exception of accounts that offer an overdraft line of credit.
Do banks run your credit to open a business checking account? ›
Banks generally don't check your credit report before approving an application for a business checking account. Your credit report shows lenders your history of paying back debt on time and in full.
Can I open a business bank account without a tax ID? ›
It is technically possible to open a business bank account without an EIN, but it is not recommended. Sole proprietors and single-member LLCs can use SSNs instead of EINs to open accounts, but it can open your business up to many problems. Obtaining an EIN is free and can be done in 10 minutes on the IRS website.
How to start a bank with no money? ›
Can I start a bank with no money? In theory, yes, but you'd better have friends with deep pockets and in high places. Because of the lofty capitalization requirements, most banks are formed as corporations run by a board of directors, whose investors are often local business or community leaders.
