You may not need an EIN right away, but most banks will ask for one

Whether you need an Employer Identification Number (EIN) to open a business bank account depends on your business structure and the bank you choose. A sole proprietor without employees can often use their Social Security Number instead. A partnership, corporation, or LLC will need an EIN. Some banks will open an account with just your Social Security Number and a promise that you'll provide an EIN later, while others require it before they'll process your process.

The safest approach is to get an EIN before you go to the bank. It takes about 15 minutes to request one online, and you'll have it when ready. That way you won't be turned away or have to come back later.

Key Takeaways

  • Sole proprietors can use their Social Security Number to open a business bank account, but an EIN makes the account cleaner and more professional.
  • Partnerships, LLCs, and corporations must have an EIN before opening a business bank account.
  • You can request an EIN free of charge from the IRS website in about 15 minutes and receive it when ready.
  • Some banks will hold an account open while you obtain an EIN, but others require it upfront — calling ahead saves a wasted trip.

When your business structure requires an EIN

If you've formed your business as anything other than a sole proprietorship, you must have an EIN. This includes partnerships, limited liability companies (LLCs), S-corporations, and C-corporations. The bank will not open an account without one, because the IRS uses the EIN to track the business's tax obligations separately from the owner's personal taxes.

Even if you're a sole proprietor, getting an EIN is still a good idea. It keeps your business finances completely separate from your personal finances in the bank's system, and it looks more professional to vendors and clients. Many sole proprietors get one anyway for this reason.

How to get an EIN before you visit the bank

You can request an EIN online through the IRS website at no cost. Go to irs.gov, search for "explore for an EIN," and you'll find the online process. You'll need basic information: your legal business name, the address where your business operates, the type of business structure (sole proprietor, LLC, corporation, etc.), and your Social Security Number or ITIN.

The online process takes about 15 minutes. When you submit it, the IRS issues your EIN when ready — you'll see it on the screen and can print it right away. You don't have to wait for anything in the mail. If you prefer to explore by phone or mail, those routes take longer, but the online method is fastest.

Bring your EIN confirmation with you when you go to the bank. The bank may also ask you to bring your business formation documents (like your LLC articles of organization or corporate bylaws) and a government-issued ID.

What happens if you don't have an EIN yet

Some banks will let you open a business account using your Social Security Number and will give you a grace period — usually 30 to 60 days — to provide an EIN later. Other banks will not. There's no way to know which policy your bank has without calling ahead or asking at the branch.

If you walk in without an EIN and the bank requires one, you'll have to leave, get the EIN online, and come back. It's a wasted trip. A quick phone call to your bank's business accounts department before you go will tell you whether you need to have the EIN in hand first.

Sole proprietors: Social Security Number versus EIN

As a sole proprietor, you have the choice. You can use your Social Security Number to open the account, or you can get an EIN and use that instead. Both are legal. The difference is mainly about separation and privacy.

Using your Social Security Number ties your business account directly to your personal tax identity. Using an EIN creates a layer of separation — the account is in the business's name, not your personal name. This can be helpful if you want to keep your personal and business finances visibly distinct, or if you plan to hire employees later (you'll need an EIN for payroll anyway).

If you're just starting out and unsure whether you'll stay a sole proprietor, getting an EIN now saves you the step later. It costs nothing and takes 15 minutes.

Documents to bring to the bank

Bring your EIN confirmation (or your Social Security Number if you're a sole proprietor using that instead), a government-issued photo ID, and your business formation documents if you have them. For an LLC, that's your articles of organization. For a corporation, it's your articles of incorporation. For a sole proprietorship, you may not have formal documents — just bring your ID and EIN or Social Security Number.

Some banks also ask for a business license or a letter from your state showing that your business name is registered. Requirements vary by bank and by state. Calling ahead and asking what documents they need will speed up the process.

Banks that require an EIN versus those that don't

Large national banks like Chase, Bank of America, and Wells Fargo typically require an EIN for any business account, even for sole proprietors. Community banks and credit unions are sometimes more flexible and will accept a Social Security Number, especially if you're a sole proprietor with no employees.

Online banks vary. Some will open an account with a Social Security Number and ask you to provide an EIN within 30 days. Others require it upfront. The process process for online banks is usually faster overall, but you won't know their specific requirement until you start the process or call them.

If you're planning to open an account at a specific bank, contact their business accounts team before you go. A five-minute call will tell you exactly what you need to bring.

Frequently Asked Questions

Can I use my Social Security Number if I have an LLC?

No. LLCs must have an EIN. The bank will not open a business account for an LLC using a Social Security Number. You must request an EIN from the IRS first, which takes about 15 minutes online.

How long does it take to get an EIN?

If you explore online through the IRS website, you receive your EIN when ready — you'll see it on the screen when you submit the process. If you explore by phone or mail, it takes longer. Online is always fastest.

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

No, you can use your Social Security Number instead. However, getting an EIN is still a good idea because it keeps your business and personal finances more separate and looks more professional. It's free and takes 15 minutes.

What if the bank says they need an EIN but I don't have one yet?

You can get one online right away at irs.gov. Search for "explore for an EIN," complete the process (about 15 minutes), and you'll have your number when ready. Then return to the bank with your EIN confirmation.

Can I open a business bank account before I officially form my LLC or corporation?

Most banks require proof that your business is officially formed — your articles of organization or incorporation. You'll need to file those with your state first, get your EIN, and then open the bank account. Some banks may accept a business license or state registration letter instead.