An EIN does not require a checking account
The IRS will issue you an Employer Identification Number (EIN) whether or not you have a business checking account. The two are separate things. An EIN is a nine-digit tax ID number; a checking account is a place to hold money. You can get an EIN without ever opening a bank account, and you can open a business checking account without having an EIN yet—though most banks will ask for one during signup.
That said, having a checking account before you request an EIN makes the process smoother in practice. Banks want an EIN to open a business account, and the IRS wants to know where to send refunds or notices. If you have neither yet, you will need to decide which to set up first.
Key Takeaways
- The IRS issues an EIN based on your business structure and tax filing needs, not on whether you have a bank account.
- Most banks require an EIN to open a business checking account, so you typically need the EIN before the account.
- You can request an EIN online, by phone, by fax, or by mail without mentioning a bank account at all.
- If you do not yet have a checking account, the bank will ask for your EIN when you apply, so get the EIN first.
Why banks ask for an EIN but the IRS does not
Banks require an EIN for a business checking account because they need to report interest and other account activity to the IRS under that tax ID. A sole proprietor using a personal Social Security number for business taxes can sometimes open a business account with just the SSN, but most banks now treat even sole proprietorships as requiring an EIN if the business has a name different from the owner's name.
The IRS, by contrast, does not care whether you have a checking account. The IRS cares whether you are a sole proprietor, partnership, S-corporation, C-corporation, or other structure, and whether you have employees. Those facts determine whether you need an EIN at all. A checking account does not change any of those facts.
This mismatch means you usually have to get the EIN first, then use it to open the checking account. If you try to open a business account without an EIN, the bank will either turn you away or ask you to come back once you have one.
How to request an EIN without a checking account
You have four ways to request an EIN from the IRS, and none of them require you to mention a bank account or have one open:
- Online (fastest): Go to irs.gov and use the online EIN application tool. You answer questions about your business structure, location, and reason for needing an EIN. You get your number immediately on screen and can print a confirmation. This works if you are a U.S. citizen or resident alien with a Social Security number or ITIN.
- By phone: Call the IRS Business and Specialty Tax Line at 1-800-829-4933. A representative will ask the same questions and issue your EIN over the phone. You will receive a confirmation by mail within two weeks. This takes about 15 minutes.
- By fax: Complete Form SS-4 (Application for an Employer Identification Number) and fax it to the IRS. The fax number depends on your state and is listed on the form itself. You will receive your EIN by fax within four business days.
- By mail: Send a completed Form SS-4 to the IRS address for your state. Processing takes about four weeks.
None of these methods ask whether you have a checking account, and none require you to have one. You only need to know your business structure, the reason you need an EIN, and your location.
What to do if you need both an EIN and a checking account
The order matters: get the EIN first, then open the checking account. Once you have your EIN confirmation (whether printed from the online tool, received by phone, or mailed to you), take it to your bank along with your ID and any other documents the bank requests. Most banks want to see the EIN confirmation letter or a printout from the IRS website showing your number.
Some banks will let you open an account with just the EIN and your ID. Others ask for additional paperwork, such as a business license, articles of incorporation (for corporations), or a partnership agreement. Call your bank before you go in to ask what documents they need for a business account in your state.
If you are a sole proprietor and the business name is the same as your legal name, some banks may let you use your Social Security number instead of an EIN. This is rare now, but worth asking about if you do not yet have an EIN and need to deposit money quickly.
Situations where you might not need an EIN
If you are a sole proprietor with no employees and no separate business name, you can use your Social Security number for taxes and may not need an EIN at all. However, you will still need a checking account to keep business money separate from personal money, and most banks will ask for an EIN even if you technically do not need one for taxes.
If you are unsure whether your business structure requires an EIN, the IRS has a tool on irs.gov that walks you through the decision. You answer a few questions about your business type and whether you have employees, and it tells you whether an EIN is required. This takes two minutes and costs nothing.
Even if an EIN is not required, getting one is free and makes banking and record-keeping simpler. Many sole proprietors get an EIN anyway to keep their business and personal finances completely separate.
What happens if you open a checking account before getting an EIN
If you try to open a business checking account without an EIN, the bank will likely ask you to come back once you have one. Some banks will let you open a personal account in your business name and transfer it to a business account later, but this creates confusion and extra paperwork.
A few banks will issue a temporary account number while you are waiting for your EIN, but this is uncommon. The safer approach is to spend 15 minutes getting your EIN online or by phone, then walk into the bank with the confirmation in hand.
Frequently Asked Questions
Can I open a business checking account with just my Social Security number?
Most banks now require an EIN for any business account, even sole proprietorships. A few banks may accept an SSN if the business name is identical to your legal name, but this is rare. Call your bank first to ask what they need.
How long does it take to get an EIN if I apply online?
You receive your EIN immediately when you submit the online application on irs.gov. You can print the confirmation right away and use it to open a checking account the same day.
Do I need an EIN if I am a sole proprietor with no employees?
Not for tax purposes, but most banks require one to open a business checking account. Getting an EIN is free and takes 15 minutes, so it is usually worth doing even if taxes do not require it.
What if the IRS loses my EIN application?
If you applied by mail or fax and do not receive a confirmation within the expected timeframe, call the IRS at 1-800-829-4933 with your business information. They can look up your application status and reissue your number if needed.
Can I use an EIN I got years ago for a different business?
No. Each business structure gets one EIN. If you have closed that business and started a new one, you need a new EIN. The old one is tied to the previous business and cannot be reused.