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

Dec. 3, 2025, 5:25 p.m.
Opening a business bank account is one of the first major steps in separating your business finances from your personal finances. Whether you need an Employer Identification Number (EIN) depends on your business structure and the bank’s policies. Here is a complete breakdown.
EIN to Open a Business Bank Account

What Is an EIN?

An Employer Identification Number (EIN) is a federal tax ID issued by the IRS. It is used to identify a business for tax, banking, and compliance purposes—similar to how a Social Security number identifies an individual.

When an EIN Is Required for a Business Bank Account

Most businesses must have an EIN before opening a business bank account. This includes:

1. LLCs (Single-Member or Multi-Member)

Banks require an EIN to open an account for an LLC because it is a separate legal entity.

2. Corporations (C-Corp and S-Corp)

All corporations must obtain an EIN for banking, tax filing, and payroll.

3. Partnerships

Partnerships are legally required to have an EIN — banks will not accept a Social Security number.

4. Businesses With Employees

If you have (or plan to have) employees, you must obtain an EIN.

When an EIN May Not Be Required

The only case where an EIN may not be needed is:

 Sole Proprietors With No Employees

Many banks allow sole proprietors to open a business account using:

  • Their Social Security Number (SSN)

  • A DBA certificate (if using a trade name)

  • Personal identification documents

However:
Some banks still prefer or require an EIN even for sole proprietors to reduce risk and for clearer business verification.

Why Banks Often Require an EIN Anyway

Even when not legally required, banks may ask for an EIN because it:

 Adds legitimacy and reduces fraud

 Makes account verification easier

 Helps comply with anti-money-laundering regulations

 Separates business and personal tax reporting

If you want a smoother banking experience, an EIN is usually the best option.

Benefits of Having an EIN Before Opening an Account

  • Separates personal and business identity

  • Makes it easier to build business credit

  • Avoids using your SSN (privacy + security)

  • Essential for hiring employees or contractors

  • Required for many lenders and merchant services

Which Banks Require an EIN?

Based on typical policies from major U.S. banks:

Banks that usually require an EIN for most business accounts:

  • Bank of America

  • Chase

  • Wells Fargo

  • U.S. Bank

Banks that may allow sole proprietors to use an SSN:

  • Capital One

  • PNC

  • TD Bank

  • Regional/community banks

Always confirm with the specific branch, as requirements vary.

Bottom Line

You usually need an EIN to open a business bank account—especially if your business is an LLC, corporation, or partnership.
A sole proprietor might be able to open an account with an SSN, but many banks still prefer an EIN.

If in doubt: Get the EIN easy at https://www.einregister.online/