Most banks require an EIN, but sole proprietors have one exception

Whether you need an Employer Identification Number (EIN) to open a business bank account depends on your business structure. If you operate as a corporation, LLC, partnership, or S-corp, the answer is yes — banks will ask for it. If you are a sole proprietor with no employees, you can use your Social Security number instead, though many banks still prefer an EIN and some require it anyway.

An EIN is a nine-digit number issued by the IRS that identifies your business for tax purposes. It works like a Social Security number for your company. Banks use it to verify your business exists and to report account activity to the IRS. Even if you do not technically need one, getting an EIN takes 15 minutes online and costs nothing, so most business owners get one regardless of structure.

Key Takeaways

  • Corporations, LLCs, partnerships, and S-corps must have an EIN before opening a business bank account.
  • Sole proprietors can use a Social Security number instead, but many banks require an EIN anyway.
  • You can obtain an EIN free from the IRS website in about 15 minutes, or by mail or phone if you prefer.
  • Banks will ask for your EIN or SSN, articles of incorporation or formation documents, and a government-issued ID when you open the account.
  • If your business structure changes, you may need a new EIN and a new bank account.

When your business structure requires an EIN

If you have formed a legal entity — meaning you filed paperwork with your state to create a corporation, LLC, partnership, or S-corp — you must have an EIN. The IRS assigns one automatically when you file your formation documents with the state, or you can request one directly from the IRS before that happens. Banks will not open an account without it because they need a way to report the account to the IRS under your business's tax ID, not your personal one.

This applies even if your LLC or corporation has only one owner and no employees. The legal structure is what matters, not the size. When you show up at the bank, bring your EIN, your articles of incorporation or articles of organization (the state filing that created your entity), and a government-issued ID. The bank will verify the EIN matches the business name on your formation documents.

Sole proprietors and when you can skip the EIN

A sole proprietor is someone who runs a business without forming a separate legal entity. You are self-employed but have not filed LLC or incorporation papers. In this case, the IRS does not require you to have an EIN — you can use your Social Security number for all business tax purposes. Many banks will open a business account under your SSN if you ask.

However, many banks now require an EIN even for sole proprietors, or they make it easier to open the account if you have one. Since getting an EIN is free and takes 15 minutes, most sole proprietors get one anyway. It also keeps your personal and business finances more separate on paper, which can be useful if you are ever audited or sued. If you plan to hire employees later, you will need an EIN at that point regardless, so getting one early avoids having to switch banks or accounts.

How to get an EIN before opening your account

The fastest way is to apply online at irs.gov/ein. Go to the IRS website, select "Apply for an EIN Online," and answer questions about your business structure, location, and reason for needing the number. The process takes about 15 minutes. You will receive your EIN immediately on screen and by email. You do not need to wait for anything in the mail.

If you prefer not to apply online, you can mail Form SS-4 to the IRS address for your state, or call the IRS Business and Specialty Tax Line at 1-800-829-4933. The phone line is open Monday through Friday, 7 a.m. to 7 p.m. your local time. By mail, the IRS typically issues an EIN within four weeks. There is no cost for an EIN under any method.

Have your Social Security number, business address, and a brief description of what your business does ready before you apply. If you have already formed an LLC or corporation, have your state formation documents nearby — the IRS may ask for your state ID number or the date you filed. You do not need to have a business license, lease, or bank account yet.

What to bring to the bank

When you are ready to open the account, bring your EIN (or SSN if you are a sole proprietor using one), your business formation documents if you have them, and a government-issued photo ID. The bank will also ask for your business address, the names of owners or signers on the account, and sometimes a business license or DBA (doing business as) certificate if you operate under a name different from your legal name.

Some banks ask for a business plan or proof of income, but most do not. If the bank says they need something you do not have, ask whether it is required or optional — many banks list optional items as if they are mandatory. If you are opening the account in person, the process usually takes 20 to 30 minutes. If you open it online or by mail, it can take a few business days for the account to be activated.

What happens if your business structure changes

If you start as a sole proprietor using your SSN and later form an LLC or corporation, you will need to obtain an EIN. Your old bank account will still work, but many banks ask you to update your account information when your business structure changes. Some banks require you to close the old account and open a new one under the EIN. Call your bank's business services line to ask what they require — do not assume you need a new account until they tell you.

Similarly, if you convert from one business structure to another (for example, from an LLC to an S-corp), the IRS may issue a new EIN or may let you keep the same one depending on the type of conversion. Contact the IRS or a tax professional to confirm whether your EIN changes, then notify your bank of the update.

Frequently Asked Questions

Can I open a business bank account with just my Social Security number?

Yes, if you are a sole proprietor with no employees. Many banks will open an account under your SSN. However, some banks require an EIN even for sole proprietors, so call ahead or check the bank's website before you visit. Getting an EIN is free and takes 15 minutes, so most sole proprietors get one anyway.

Do I need an EIN if I have not formed an LLC yet?

No. If you have not filed formation documents with your state, you are a sole proprietor and can use your SSN. You can obtain an EIN at any time, even before you form an LLC, but it is not required until you actually create the legal entity.

How long does it take to get an EIN?

If you apply online at irs.gov, you receive your EIN immediately. If you apply by phone, you get it the same day. If you mail Form SS-4, the IRS typically issues an EIN within four weeks. Online is the fastest option and costs nothing.

What if the bank says they cannot find my EIN?

Double-check that you entered the number correctly — it is nine digits with a hyphen in the middle (for example, 12-3456789). If the number is correct, the bank's system may not have updated yet. Ask the bank to verify the EIN directly with the IRS, or provide a copy of your EIN confirmation letter from the IRS. If the EIN was issued very recently, wait a day or two for it to appear in the IRS database.

Do I need a business license before I open a bank account?

No. A business license is separate from a bank account and is not required to open one. Some states and cities require a license to operate, but banks do not. You can open a business bank account before you obtain a license, though you may need the license for other business purposes.