You can open a business bank account without an EIN, but the bank will ask for an alternative identifier and you may face restrictions
Most banks will not open a business account without some form of tax identification. If you do not yet have an Employer Identification Number (EIN), you have three paths: use your Social Security Number as a temporary identifier, apply for an EIN before opening the account, or use a state-issued business tax ID if your state offers one. The easiest route depends on your business structure and how quickly you need the account open.
Banks vary in what they will accept. Some will let you open an account using your SSN and a Doing Business As (DBA) filing from your state or county. Others require an EIN no matter what. A few will let you open the account conditionally and give you 90 days to provide an EIN afterward. Calling ahead to ask your specific bank's policy saves time and frustration.
Key Takeaways
- Many banks will open a business account using your Social Security Number instead of an EIN, but policies vary by bank and by state.
- An EIN takes about 15 minutes to obtain online through the IRS website, or up to four weeks by mail, and costs nothing.
- Some banks require proof of business registration (a DBA filing or articles of incorporation) even if you use your SSN as the tax ID.
- Using your SSN on a business account does not protect your personal finances from business liability the way an LLC or corporation does.
- If a bank refuses to open an account without an EIN, applying for one takes less time than finding a different bank.
Opening an account with your Social Security Number
If you are a sole proprietor or single-member LLC, many banks will let you use your SSN as the tax identification number on the business account. You will still need to show the bank that you are operating a legitimate business — usually a DBA certificate from your county or state, or articles of incorporation if you formed an LLC. The bank may also ask for a business license if your state or city requires one.
This works fastest if you have already filed a DBA or formed an LLC. If you have not, you can often file a DBA online with your county clerk in a day or two for $10 to $50, depending on your state. Some banks will accept a business license alone, though this varies. Call the bank's business services line before you go in, and ask exactly what documents they need to see.
The downside is that using your SSN blurs the line between your personal and business finances in the bank's records. This does not affect your legal liability protection if you have an LLC, but it can make accounting and tax filing messier. Many accountants recommend getting an EIN anyway, even if the bank does not require it.
Getting an EIN before you open the account
An EIN is free and takes 15 minutes to get online. Go to the IRS website, find the EIN application tool (called the online EIN application), and fill out Form SS-4. You will need your Social Security Number, the legal name of your business, the address where it operates, and the type of business structure (sole proprietor, LLC, S-corp, etc.). The IRS will issue your EIN immediately on screen, and you can use it right away.
If you prefer to apply by mail or phone, you can mail Form SS-4 to the IRS and receive your EIN in about four weeks. You can also call the IRS Business and Specialty Tax Line at 1-800-829-4933 and apply over the phone, though wait times can be long. For most people, the online application is the fastest and simplest option.
Once you have your EIN, you can open a business bank account the same day. Bring the EIN letter the IRS sent you (or print the confirmation from the online application), your ID, and any business registration documents the bank asks for. Having an EIN before you walk in means no negotiation about what the bank will accept.
State business tax IDs as an alternative
Some states issue their own business tax identification numbers separate from the federal EIN. California, for example, issues a state tax ID number through the Franchise Tax Board. If your state has one, you may be able to use it instead of an EIN when opening a bank account, though this depends on the bank.
State tax IDs are usually faster to obtain than an EIN if you are applying in person at a state office, but they do not replace the EIN for federal tax purposes. If you eventually hire employees or file certain types of tax returns, you will need an EIN anyway. Using a state tax ID on your bank account is a temporary solution, not a permanent one.
Check your state's revenue or taxation department website to see whether your state issues a business tax ID and what the timeline is. Some states process them in a day; others take a week or more. If your bank accepts it, this can be faster than waiting for an EIN by mail, but the online EIN application is usually quicker overall.
What banks typically require in writing
| What the bank asks for | If you have an EIN | If you are using your SSN |
|---|---|---|
| Tax identification number | EIN | Social Security Number |
| Proof of business existence | DBA, articles of incorporation, or business license | DBA, articles of incorporation, or business license |
| Owner identification | Driver's license or passport | Driver's license or passport |
| Business address | Required | Required |
| Ownership structure documentation | May be required for LLCs or corporations | May be required for LLCs or corporations |
When a bank refuses to open an account without an EIN
Some banks, particularly larger national chains, have a blanket policy that all business accounts must have an EIN. If you run into this, you have two choices: get an EIN (which takes 15 minutes online) or find a different bank. Getting the EIN is almost always faster than switching banks, since you would still need to provide the same documents to a new bank.
Community banks and credit unions are often more flexible than large national banks, but this is not may provide. If you are turned down, ask the bank whether they will open the account conditionally and give you a deadline to provide an EIN. Some do. If not, apply for the EIN online while you are still at the bank, and you can often open the account the same day once you have the number.
Liability and tax filing without an EIN
Using your SSN on a business bank account does not change your legal liability. If you are a sole proprietor, you are personally liable for business debts whether the account has an EIN or an SSN. If you have formed an LLC, your personal liability is limited regardless of which tax ID the bank uses. The bank's records do not determine your legal structure — your state filing does.
For tax purposes, the IRS treats a sole proprietor with or without an EIN the same way: you report business income and expenses on Schedule C of your personal tax return. If you have an LLC taxed as a corporation, you will need an EIN to file a corporate return, even if you opened the bank account with your SSN. The bank account is separate from your tax filing obligations.
Frequently Asked Questions
How long does it take to get an EIN online?
The IRS issues an EIN immediately when you complete the online Form SS-4 application. You will see your number on screen and can use it right away. If you apply by mail, it takes about four weeks. The online application is free and takes about 15 minutes.
Can I use my SSN on a business account if I have an LLC?
Yes, many banks will let you use your SSN as the tax ID on an LLC business account. However, most banks and accountants recommend using an EIN instead, since it keeps your personal and business finances clearer in the bank's records and makes tax filing simpler. An EIN is free and takes 15 minutes to get online.
What if I have not filed a DBA yet?
You can file a DBA online with your county clerk in most states for $10 to $50, and it usually takes one to three days. Some banks will open an account while your DBA is pending, but this varies. Call the bank first to ask whether they will accept a pending DBA or if they need the filed certificate in hand.
Do I need an EIN if I am a sole proprietor?
No, the IRS does not require sole proprietors to have an EIN. You can file taxes using your SSN. However, getting an EIN is free and takes 15 minutes, and many banks and accountants recommend it because it separates your personal and business finances. If you plan to hire employees later, you will need an EIN anyway.
Can a bank close my account if I do not provide an EIN within 90 days?
Yes, if the bank opened your account conditionally and set a deadline for an EIN, they can close it if you miss that deadline. However, this is rare. Most banks that accept SSN accounts do not require you to convert to an EIN later. Confirm the bank's policy in writing before you open the account.