An Employer Identification Number (EIN) is a federal tax ID number for businesses, tax-exempt organizations and other entities. It’s essentially a Social Security number (SSN) for businesses. The IRS uses EINs to track business taxes, and most banks ask for one when you apply for a business bank account.
That said, your EIN isn’t the only thing banks will ask for. To set up your business bank account, banks will need to verify your identity and business information, which means you’ll almost always be asked to provide more than just your EIN.
When people talk about EIN-only business bank accounts, they usually mean accounts you can open without sharing your personal SSN. These are rare, though.
Under federal Know Your Customer (KYC) rules, banks must verify both the business and the individuals behind it. That means you generally must provide your personal details, such as your SSN, government-issued ID and ownership information, even if your business has a separate EIN.
Even for corporations or multi-member LLCs, banks often ask for formation documents, ownership records and sometimes operating agreements to confirm that your business is legitimate and that you’re authorized to open the account.
Yes. If you’re a sole proprietor or a single-member LLC without employees, many banks let you open a business account using just your Social Security number.
However, EINs are pretty easy to get through the IRS website. And since most business structures require one anyway, it’s worth taking a few minutes to apply if you plan on eventually growing your business.
Yes, depending on your business structure.
Sole proprietors and single-member LLCs without employees can often use their SSN instead of an EIN to open a business account. You’ll still need to provide other personal information, like a government-issued ID, your legal name and address.
Here’s what most banks may ask you to provide when you apply for a business bank account:
Note that the requirements can vary depending on the bank, state and your business structure.
As a business owner, it’s definitely worth considering opening a business bank account. Here’s why:
Narrow down business accounts by monthly fees, APYs and features. For a closer comparison, tick the Compare box to see options side by side.
The Finder Score crunches over 300 checking accounts from hundreds of financial institutions. It takes into account the product's monthly fees, overdraft fees, opening deposit, customer support options, ATM network and features — this gives you a simple score out of 10.
To provide a Score, Finder’s banking experts analyze hundreds of checking accounts against what we consider is the best option: no monthly fees, no overdraft fees, a large ATM network of 50,000 or more, additional features outside of typical banking services, and the optional perk of earning interest. Accounts that are nearly free to maintain and use are scored the highest, while accounts with costly fees and few features are scored the lowest.
An EIN is often required when you apply for a business bank account, but it’s not the only information banks will need from you. Banks will also need to verify both your business and you as the owner, which means you’ll have to provide extra documentation and personal details.
If you don’t already have a dedicated bank account for your business, check out these best business checking accounts to find one that fits your business structure and needs.
Top business checking offers we’ve found are from Chase, Huntington, PNC and U.S. Bank. See the bonus requirements here.
Airwallex is a borderless business account with no monthly fee or foreign transaction fees. But as an online option, there are no physical branches.
See how the Do More Business Checking business account with no monthly fee compares to others in the market.
Integrate your business banking with payment processing tools, and give key employees debit card access.
Small business owners can earn up to 3% APY with Bluevine’s business checking account that accepts cash deposits.
Learn what you need to open a business bank account and how to go about choosing and setting up your account.
QuickBooks Cash lets you manage all of your business finances with one tool.
North One Bank offers a well-rounded business account North with no monthly fees and a ton of management tools, but no international wires.
A small business checking account comes with features like early access to payments, automatic savings for taxes and emergencies.
A business bank account that works for you could be a way for you to fund your business.
