Whether you need an EIN to open a business bank account depends on how your business is organized. Corporations, partnerships, multi-member LLCs, and nonprofits must use an Employer Identification Number. Sole proprietors and single-member LLCs with no employees can usually open an account with just a Social Security Number, though there are good reasons to get an EIN anyway.
When an EIN Is Required
Federal tax regulations treat any business that exists as a separate legal entity as its own taxpayer, and separate taxpayers get their own identifying number. Under the identifying-number rules, non-individual entities like corporations, partnerships, nonprofit associations, trusts, and estates must furnish an EIN rather than a personal Social Security Number.1eCFR. 26 CFR 301.6109-1 – Identifying Numbers For banking purposes, that means an EIN is mandatory if your company is:
- A C-corp or S-corp, regardless of size.
- A partnership or multi-member LLC, because multiple owners make it a separate entity for tax purposes.
- A nonprofit organization. The IRS advises waiting until the organization is legally formed before applying.2IRS. Obtaining an Employer Identification Number for an Exempt Organization
Sole proprietors and single-member LLCs that would otherwise be allowed to use an SSN still have to obtain an EIN if any of the following applies:
- You have hired or plan to hire employees.
- You file excise, alcohol, tobacco, or firearms tax returns.
- You have a Keogh or other qualified retirement plan.
- You purchased an existing business.
The Form SS-4 instructions list each of these triggers and specify that a sole proprietor filing Schedule C or Schedule F must get an EIN when any of them applies.3IRS. Instructions for Form SS-4
When You Can Use Your SSN
Running a sole proprietorship or a single-member LLC with no employees, and none of the triggers above? Your SSN works. The IRS treats a single-member LLC as a “disregarded entity,” which means the business and the owner are the same taxpayer. Business income lands on your personal return, and the regulations direct a disregarded entity to use its owner’s taxpayer identification number for federal tax purposes.1eCFR. 26 CFR 301.6109-1 – Identifying Numbers
Banks follow the same logic. For tax purposes the individual owner and the business are one legal person, so the bank opens the account against your SSN, your personal ID, and whatever business documentation it asks for. No EIN confirmation letter needed.
Reasons to Get an EIN Even If You Don’t Have To
Plenty of sole proprietors get an EIN by choice. Privacy is the most common reason. Without one, your SSN can end up on invoices, W-9s you send to clients, and vendor applications. An EIN keeps your Social Security Number off those documents and lowers your exposure to identity theft.
An EIN also gives you a way to build credit history for the business separately from your personal credit. And if you later hire employees, take on a partner, or change your business structure, you’ll need an EIN then anyway. Getting one upfront saves you from having to update the bank’s records down the line.
How to Get an EIN
Applying is free, and the IRS online application issues your number immediately upon approval.4IRS. Get an Employer Identification Number You have to finish the application in one sitting, because it can’t be saved and it expires after 15 minutes of inactivity. When you’re done, print the confirmation notice for your records.
If you don’t have an SSN or ITIN, or your business has no legal residence in the United States, the online tool won’t work. In that case, you can:
- Call 267-941-1099 between 6:00 a.m. and 11:00 p.m. Eastern time, Monday through Friday.
- Fax a completed Form SS-4 to 304-707-9471 and expect your EIN in about four business days.
- Mail Form SS-4 and wait roughly four weeks.3IRS. Instructions for Form SS-4
Be wary of third-party sites charging a fee to get you an EIN. The IRS says you should never have to pay for one.4IRS. Get an Employer Identification Number
What the Bank Will Ask For
Requirements vary by institution, but most banks ask for the same core documents. Having them ready keeps the appointment short.
Taxpayer Identification Number
If you have an EIN, bring the IRS confirmation notice (Form CP 575, issued when your EIN is first assigned). Lost it or never received it? Call the IRS Business and Specialty Tax Line and request a replacement, known as a 147C letter. If you’re using your SSN, you’ll simply enter it on the bank’s application.
Business Formation Documents
LLCs, corporations, and partnerships need to produce their formation paperwork. That usually means Articles of Organization for an LLC or Articles of Incorporation for a corporation, as filed with the secretary of state. Sole proprietors without a formal entity filing generally don’t need formation documents, though some banks may ask for a business license or permit.
Personal ID for Owners and Signers
Banks have to verify the identity of anyone with significant ownership or control. A valid government-issued photo ID, such as a driver’s license or passport, is required for anyone who will have signing authority. Many banks set the threshold at 25% or more ownership; some ask for identification from anyone with 10% or more.
DBA or Fictitious Name Certificate
If the business operates under a name different from the legal name on your formation documents (or, for sole proprietors, different from your own name), the bank will typically want a copy of your DBA or fictitious name registration. Filing is done at the state or county level, and fees generally range from about $10 to $150.
Corporate Resolution or Operating Agreement
Corporations and multi-member LLCs are often asked for a document authorizing specific individuals to open accounts and transact on the business’s behalf. A corporation provides a board resolution; an LLC provides a membership resolution or the relevant section of its operating agreement.
Why Banks Have to Ask in the First Place
Federal anti-money-laundering rules require every bank to run a Customer Identification Program before opening any account. Under 31 CFR 1020.220, that program has to collect the customer’s name, date of birth (for individuals), address, and an identification number. For U.S. persons, the identification number must be a taxpayer ID: an SSN, ITIN, or EIN. Non-U.S. persons can satisfy the rule with a passport number or another government-issued document.5eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements for Banks Banks that don’t verify customer identities face civil penalties, so they can’t waive the requirement.
A Note on Beneficial Ownership Reporting
While pulling documents together, you may see references to beneficial ownership information (BOI) reporting under the Corporate Transparency Act. As of March 2025, an interim final rule from FinCEN exempts all domestic companies from BOI reporting. Only foreign companies registered to do business in the United States still have to file.6Federal Register. Beneficial Ownership Information Reporting Requirement Revision and Deadline Extension If your company is a foreign reporting entity, you must file within 30 days of registering to do business in the United States or 30 days after the rule’s March 26, 2025, publication date, whichever is later. The exemption for domestic companies could change if FinCEN issues a new final rule, so it’s worth watching for updates. Either way, your bank will still collect beneficial ownership information from you under its own customer identification process.