Do You Need an EIN to Open a Business Bank Account?

Sole proprietors and some single-member LLCs can open a business checking account without an employer identification number (EIN) at many financial institutions. You’ll probably have to provide your Social Security number to verify your identity, though.

That said, even if you don’t need an EIN for a business checking account, it’s a good idea to apply for one. These unique business tax ID numbers issued by the IRS are fast and free to get, and you’ll need an EIN if you ever hire employees or contractors.

» MORE: How to apply for your EIN online

Business bank accounts you can open without an EIN

The following financial companies let sole proprietors apply for business bank accounts with a Social Security number instead of an EIN. Some single-member LLCs may be able to apply without an EIN, too.

If you feel comfortable with digital banking, consider an online business checking account. These accounts usually have no minimum opening deposit, unlimited transactions and few fees, though you may run into low cash deposit limits. Accounts available without an EIN include:

• Bluevine, which pays 1.50% APY on all balances.

• Found, which integrates with many gig work apps.

• LendingClub, which pays 1% cash back on debit card purchases.

• Lili, which lets you receive some ACH payments up to two days early. 

• Novo, which comes with built-in invoicing.

Brick-and-mortar banks are more likely to limit the number of transactions you can make each month and charge monthly fees. But if you like being able to walk into a branch location, consider these options:

• Bank of America, which allows unlimited electronic transactions.

• BMO Harris, which lets customers use an extra 40,000 Allpoint ATMs for free.

• Chase, which currently offers a $300 sign-up bonus.

• Huntington, which offers a 24-hour grace period when you overdraft.

• TD Bank, which provides 24/7 customer service over the phone.

» MORE: Best business bank accounts for sole proprietorships

Compare business accounts available without an EIN

Why do banks need to verify your identity?

Banks must verify customer information before you open an account in order to help prevent fraud and money laundering. Requiring an EIN to prove your business’s identity and the nature of your business is one way to do this. Even if you have an EIN, though, you can’t open a business bank account with an EIN only — some personal information and additional documentation will be required.

Banks don’t always require an EIN to open a business account. But whether or not you have an EIN, you’ll need to provide your Social Security number or Individual Taxpayer Identification Number (ITIN).

An EIN isn’t mandatory for sole proprietors or single-member LLCs unless you have employees or one is legally required for tax purposes. Consult your accountant or a tax professional if you’re unsure what’s necessary for your business.

If you plan on doing business as a partnership, multi-member LLC or corporation, the federal government requires an EIN.

Benefits of opening a business bank account with an EIN

Even if an EIN isn’t required for your business, there are many benefits to getting one before you open a business bank account.