Do you need an EIN to open a business bank account?
One fact settles it: the entity type. A corporation, a partnership, and a multi-member LLC must open under an EIN. A single-member LLC and a sole proprietor may open with an SSN at many banks.
The line runs along how the IRS taxes the entity. A corporation and a partnership are separate taxpayers with their own 9-digit EIN, so a bank opens the account in the entity name, not under a personal SSN. A multi-member LLC of 2 or more owners is a partnership by default, which puts it in the same required group. That is 3 structures for which the EIN is not optional.
A single-member LLC with 0 employees and a sole proprietor with 0 employees sit on the other side. The IRS lets each report on the owner's SSN, and many banks accept that SSN on the business account. Even there, an EIN is the stronger choice for 2 reasons covered below: it keeps the SSN private and it draws a clean line between business and personal money.
Not sure the business needs an EIN at all? Work through the do I need an EIN page, which maps all 5 structures to the IRS rule.
Which business types must have an EIN to open an account?
Three: a corporation, a partnership, and a multi-member LLC. Each is its own taxpayer or files its own return, so the bank opens the account under the 9-digit EIN rather than a personal SSN.
A C corporation files Form 1120 and an S corporation files Form 1120-S, and each is required by the IRS to hold an EIN from day 1, so no bank opens a corporate account without it. A partnership of 2 or more owners files Form 1065 and carries its own EIN for the same reason. A multi-member LLC defaults to partnership treatment, so a 2-member LLC and a 20-member LLC both open the account under the EIN, while a sole proprietor instead reports on Schedule C of Form 1040.
A single-member LLC is the 1 case where the rule bends. For tax the IRS treats it as a disregarded entity tied to the owner's SSN, yet many banks still ask for an EIN on the account, so the EIN there is recommended. Read the full breakdown on the EIN for an LLC page and the EIN for a sole proprietorship page.
What documents does a bank require to open the account?
Four, at most banks: the EIN confirmation letter, the state formation document, a government photo ID for each signer, and beneficial-owner details for every owner of the entity.
| Document | What it proves |
|---|---|
| EIN confirmation (CP-575 or 147C) | The 9-digit EIN is tied to this exact legal entity |
| Formation document | Articles of Incorporation or Articles of Organization filed with the state |
| Government photo ID | The identity of each signer on the account |
| Beneficial-owner details | Every beneficial owner of the entity |
Bank account-opening rules are category-level; confirm the exact list with your bank. Verified July 2026.
The EIN letter is the piece the bank ties everything else to. The IRS issues 1 original CP-575 when it assigns the number, and a 147C letter reprints the same 9-digit EIN if the CP-575 is lost. A branch accepts either. The beneficial-owner step exists because banks must identify each individual who owns 25% or more of the entity, under 31 CFR 1010.230, before the account opens.
Confirm what the CP-575 looks like and how to replace it on the CP-575 page before the branch appointment.
How does an EIN protect your Social Security number?
An EIN replaces the 9-digit SSN on the account, on W-9 forms, and on the 1099 forms clients file. Fewer parties see the SSN, so 1 business number carries the exposure instead of the personal one.
A sole proprietor who banks on an SSN prints that 9-digit number on every W-9 a client requests, and each client then reports payments on a 1099 form carrying it. Across 10 or 20 clients in 12 months, the SSN travels widely. Swap in an EIN and the same forms carry the business number, so the SSN stays on 0 vendor records.
The account itself is the clearest gain. With an EIN, deposits, card charges, and transfers land under the entity, which keeps 1 clean set of books for the year and separates personal money from business money. See how the EIN sits on federal filings on the EIN for a business page.
Can a sole proprietor open a bank account with an SSN?
Yes, at many banks. A sole proprietor with 0 employees and a single-member LLC with 0 employees may open a business account under an SSN, because the IRS ties each to the owner's number for tax.
The SSN route works, yet it hands the branch the 9-digit personal number and prints it on the account. Once the business hires even 1 employee, the IRS requires an EIN, and the bank account has to move onto it, which is a second trip. Starting with an EIN avoids that switch entirely.
A responsible party with no SSN and no ITIN still gets an EIN, so an international founder opens a US business account under it. Form SS-4 line 7b accepts the entry Foreign, the fax route to 855-641-6935 returns the number in 4 business days at $0, international filers fax 855-215-1627, and international callers reach the IRS at 267-941-1099. Read the full path on the EIN without an SSN page.
How do you get an EIN before opening a bank account?
File Form SS-4 with the IRS at $0. With an SSN, the online tool issues the 9-digit EIN in 15 minutes; without one, the free fax route returns it in 4 business days. Then take the CP-575 to the bank.
On Form SS-4, line 1 carries the legal entity name exactly as the formation document reads, line 7a names the responsible party, line 9a states the entity type, and line 10 gives the reason. Select banking purposes on line 10; that 1 reason is valid on its own. The IRS fee is $0, and no route charges more than another.
| EIN filed by | Price | Speed to the number |
|---|---|---|
| Yourself, IRS online | $0 | 15 minutes, with an SSN or ITIN |
| ein-number.com, Standard | $69 | Prepared, senior-reviewed, filed in 8 business days |
| ein-number.com, Fast | $99 | Same, filed within 24 hours, 7 business days total |
Source: IRS EIN application and Form SS-4 instructions, verified July 2026. The IRS fee is $0 in all 50 states.
Paid competitors price the same preparation from $59.99 to $200, while the IRS number underneath stays free. With an SSN and a clean name, the free online route wins 100% of the time; the $69 and $99 options earn their price when a line rejects or the mail route stretches to 4 weeks and about 14 calendar days for the CP-575 to arrive.
Walk the full line-by-line application on the how to apply for an EIN page, read the field guide on the Form SS-4 page, and confirm the $0 IRS fee on the EIN cost page.
What happens after the bank verifies your EIN?
The bank matches the 9-digit EIN and the legal name to the CP-575, checks each signer's ID, records every beneficial owner, and opens the account. That review takes 1 appointment at most branches.
The name is where accounts stall. The entity name on line 1 of Form SS-4, on the CP-575, and on the formation document has to read the same 3 ways, because a bank rejects a mismatch. If the name changed after the EIN was assigned, the IRS reprints it on a 147C letter so the CP-575 and the current name line up before the appointment.
The EIN never renews and carries no annual fee, so it stays $0 in year 2 and every year after, and the same number appears on Form 941 for payroll and on Form 8822-B when the business address changes. See the free-filing overview on the free EIN number page.