You usually need an EIN to open a business bank account, but the rule depends on your business structure and whether you have employees

A business bank account requires an Employer Identification Number (EIN) in most cases, but not all. If you operate as a sole proprietor with no employees, you can use your Social Security Number instead. If you have any employees, operate as a partnership, LLC, S-corp, or C-corp, or plan to hire anyone in the future, you need an EIN. Banks will ask for one during the account-opening process, and if you don't have it yet, you'll need to get it before the account can be opened.

The distinction matters because it affects how quickly you can open the account and what documents the bank will ask for. A sole proprietor using a Social Security Number can sometimes open an account the same day. Anyone else will need to obtain an EIN first, which takes a few minutes online or up to two weeks by mail.

Key Takeaways

  • Sole proprietors with no employees can use their Social Security Number instead of an EIN, but most banks prefer an EIN for business accounts.
  • If you have employees, operate as an LLC, partnership, or corporation, or plan to hire anyone, you must have an EIN before opening a business bank account.
  • You can obtain an EIN online through the IRS website in minutes, by phone, by fax, or by mail — online is fastest.
  • Bring your EIN confirmation letter or the IRS notice to the bank; some banks will accept the EIN number alone if you obtained it online.
  • If you don't have an EIN yet, apply for one before visiting the bank to avoid delays or being turned away.

Business structures that require an EIN

Any business that is not a sole proprietorship must have an EIN. This includes partnerships, limited liability companies (LLCs), S-corporations, C-corporations, and nonprofits. If you formed your business as any of these structures, the bank will require an EIN and will not accept a Social Security Number as a substitute.

Even if you are a sole proprietor, most banks will ask for an EIN anyway. Some banks will open an account with just a Social Security Number, but they are the exception. If you plan to grow your business or hire employees later, getting an EIN now saves you from having to change your banking setup later.

Sole proprietors and when you can skip the EIN

A sole proprietor is someone who owns and operates a business by themselves with no employees. If this describes you, you can use your Social Security Number to open a business bank account at most banks — though you will likely need to ask, because the default assumption is that you have an EIN.

However, if you plan to hire anyone — even a part-time contractor — you will need an EIN before you can pay them legally. The moment you have employees, you must have an EIN, and you must use it on your business bank account. It is simpler to get an EIN now than to switch accounts later.

How to get an EIN before opening your account

The fastest way to get an EIN is online through the IRS website. Go to irs.gov, search for "Apply for an EIN," and use the online application tool. You will answer questions about your business structure, location, and what you do. The process takes about 15 minutes, and you receive your EIN immediately on screen. You can print or screenshot the confirmation page and take it to the bank the same day.

If you cannot apply online, you can call the IRS at 1-800-829-4933 (Monday through Friday, 7 a.m. to 10 p.m. your local time). An agent will issue your EIN over the phone and mail you a formal notice. You can also fax Form SS-4 to the IRS fax number for your state, or mail it in — fax takes about two weeks, and mail takes three to four weeks.

Have your Social Security Number, business address, and a description of what your business does ready before you apply. If you formed an LLC or corporation, have your formation documents nearby — the IRS may ask when your business started or what state you formed it in.

What to bring to the bank

Bring your EIN confirmation letter or the IRS notice that shows your EIN. If you obtained your EIN online, print the confirmation page. Some banks will accept just the EIN number if you can show them the online confirmation, but others require the official IRS letter. Call your bank before you go and ask what they need.

You will also need to bring a government-issued ID, your Social Security Number, and proof of your business address (a utility bill or lease works). If you formed an LLC or corporation, bring your formation documents — the Articles of Organization or Articles of Incorporation. The bank may also ask for a business license if your state or city requires one.

Timeline for getting an EIN and opening your account

If you apply for an EIN online, you can open your bank account the same day or the next day. The online process takes 15 minutes, and you have your number immediately. If you call the IRS, you get your EIN the same day during business hours. If you fax or mail your application, allow two to four weeks for the IRS to process it and mail you the notice.

Once you have your EIN, opening the bank account itself usually takes one to three business days. Some banks can open an account on the spot if you have all your documents. Others will review your application and contact you within a few days. Plan to have your EIN in hand at least a few days before you need the account to be active.

What happens if you try to open an account without an EIN

If your business structure requires an EIN and you don't have one, the bank will not open the account. They will ask you to obtain an EIN and come back. Some banks will let you start the application process and complete it once you have your EIN; others will ask you to return when you're ready.

If you are a sole proprietor and the bank insists on an EIN, you have two choices: get an EIN online (takes 15 minutes) or ask the bank if they will accept your Social Security Number. A few banks will, but most will not. Getting the EIN is usually faster than arguing about it.

Frequently Asked Questions

Can I use my Social Security Number instead of an EIN for my LLC?

No. LLCs must have an EIN, even if you are the only owner and have no employees. The bank will require it. Apply for one online through the IRS website before opening your account.

How long does it take to get an EIN if I apply online?

You receive your EIN immediately when you complete the online application on the IRS website. You can print the confirmation page and take it to the bank the same day. No waiting required.

What if I don't have my EIN confirmation letter yet?

If you applied online, print the confirmation page from your screen — most banks will accept that. If you applied by mail or fax and are still waiting for the IRS notice, call the IRS at 1-800-829-4933 and ask them to confirm your EIN over the phone. You can then tell the bank your number.

Do I need an EIN if I'm a sole proprietor with no employees?

Technically no — you can use your Social Security Number. However, most banks prefer an EIN for business accounts. Since getting one online takes 15 minutes, it's usually easier to just get it than to search for a bank that will accept your Social Security Number.

What if I formed my business in one state but live in another?

Use the address where your business is located, not your home address. When you apply for an EIN online or by phone, the IRS will ask where your business operates. That's the address you provide, regardless of where you live.