Most banks will ask for an EIN, but sole proprietors can use a Social Security number instead
Whether you need an Employer Identification Number (EIN) to open a business bank account depends on your business structure. If you are a sole proprietor with no employees, you can use your Social Security number. If you are a partnership, LLC, S-corp, or C-corp, or if you are a sole proprietor who wants to keep business and personal finances completely separate, you will need an EIN.
Banks vary in their requirements. Some will open an account for a sole proprietor using only a Social Security number and a business name. Others require an EIN regardless of structure. The safest approach is to get an EIN before you go to the bank — it takes 15 minutes online and costs nothing.
Key Takeaways
- Sole proprietors can open a business bank account using a Social Security number, but many banks prefer an EIN.
- Partnerships, LLCs, and corporations must have an EIN before opening a business bank account.
- You can get an EIN free from the IRS website in about 15 minutes, or by mail or phone if you need it faster than online processing.
- Bring your EIN confirmation letter or a printout of your online confirmation to the bank, along with your ID and business documents.
- If a bank refuses to open an account without an EIN and you do not have one yet, you can get it the same day before returning to complete the account opening.
When you must have an EIN before opening the account
If your business is structured as a partnership, LLC, S-corp, or C-corp, the bank will require an EIN. These structures are separate legal entities from their owners, and the IRS treats them that way. The bank needs the EIN to report interest and other account activity to the IRS under the correct tax ID.
Even if you are a sole proprietor, some banks will not open a business account without an EIN. This is a bank policy, not a legal requirement, but it is common enough that you should expect it. If you plan to hire employees at any point, you will need an EIN anyway, so getting one early saves a step later.
When you can use your Social Security number instead
Sole proprietors without employees can use their Social Security number as their tax ID. Some banks will open a business account under this arrangement. However, the account will still be in your personal name, and the bank may treat it as a personal account with a business purpose rather than a true business account.
This works if you want to keep things simple and do not mind the account being tied to your personal tax ID. But if you want clear separation between your business and personal finances — which is important for liability protection and tax record-keeping — an EIN is worth getting even if the bank does not require it.
How to get an EIN before you go to the bank
The fastest way is to apply online at irs.gov/ein. Go to the "Apply for an EIN" section and follow the form. You will answer questions about your business structure, location, and what you do. The process takes about 15 minutes. You will get your EIN immediately on screen and can print a confirmation page right away.
If you cannot use the online form — for example, if you are a nonresident alien or applying on behalf of a trust — you can apply by mail using Form SS-4, or by phone at 1-800-829-4933. Mail takes about four weeks. Phone processing is faster but has limited hours.
You do not need to have filed any business paperwork with your state yet. You do not need a business license or a lease. The IRS will issue an EIN based on your answers alone. Bring the confirmation page or a printout of your online confirmation to the bank.
What to bring to the bank when you open the account
Bring your EIN confirmation letter or a printout of your online confirmation. Bring a government-issued photo ID. Bring your Social Security number or EIN. Bring proof of your business address — this can be a lease, utility bill, or a letter from your landlord. Some banks also ask for your business license or articles of organization, but not all.
Call the bank before you go and ask what they need. Different banks have different checklists, and some have changed their requirements recently. A five-minute call can save you a trip back home for a missing document.
What happens if the bank asks for an EIN and you do not have one yet
Do not leave the bank and come back later. Ask the banker if you can step outside, get your EIN online on your phone, and come back in to complete the application. The IRS website works on mobile devices, and you will have your confirmation in minutes. Many banks will wait while you do this.
If the bank cannot wait or if you do not have phone service, ask them to hold your application. Get your EIN at home, then call or return to the bank the same day to finish opening the account. Banks usually hold applications for at least a few days.
Sole proprietors who want to keep things simple
If you are a sole proprietor, have no employees, and want to avoid paperwork, you can open a business account with your Social Security number at many banks. This is legal and straightforward. The account will be in your name, and you will report business income on your personal tax return as you normally would.
The trade-off is that your business and personal finances are not completely separated at the bank level. For tax purposes and liability protection, most accountants recommend getting an EIN anyway. But if you are just starting out and want to keep things minimal, this option exists.
Frequently Asked Questions
Can I open a business bank account before I get my EIN?
Only if you are a sole proprietor and the bank accepts your Social Security number. Most banks prefer an EIN, so you may be turned away. Since getting an EIN takes 15 minutes online and costs nothing, it is easier to get it first.
Do I need a business license to get an EIN?
No. The IRS will issue an EIN based on your business structure and location alone. You do not need a state business license, articles of organization, or any other paperwork filed yet.
What if I applied for an EIN online but did not print the confirmation?
Log back into the IRS website using the same email and information you used to apply. You can retrieve and print your confirmation page. If you cannot log back in, call the IRS at 1-800-829-4933 and they can look up your EIN by phone.
Can I use my EIN to open a personal bank account?
No. An EIN is for business entities only. Personal bank accounts use your Social Security number. If you try to use an EIN for a personal account, the bank will reject it.
If I open a business account with my Social Security number, can I switch to an EIN later?
Yes, but it varies by bank. Some will update the account to use an EIN instead. Others require you to close the old account and open a new one. Ask your bank what their process is before you open the account.