An EIN does not require a checking account, but most banks will ask for one when you open a business account

An Employer Identification Number (EIN) is a nine-digit tax ID issued by the IRS. It is separate from a checking account—you can have one without the other. However, the moment you try to open a business checking account at a bank, that bank will almost always require an EIN before they will set up the account. The two are linked in practice, even though they are not legally linked.

If you are a sole proprietor with no employees, you can use your Social Security Number instead of an EIN for tax purposes. But if you want a business checking account (which most people do, to keep business and personal money separate), the bank will still push you toward getting an EIN first. Some banks will accept an SSN, but this is rare and depends on the bank's internal policy.

Key Takeaways

  • An EIN is a tax ID number from the IRS; a checking account is a bank product—they are two different things that happen to work together.
  • Most banks require an EIN before opening a business checking account, even if you are a sole proprietor with no employees.
  • You can obtain an EIN for free from the IRS online, by phone, or by mail, and the process takes minutes to a few days depending on the method.
  • Some banks will open a business account using your Social Security Number instead of an EIN, but this is uncommon and varies by institution.
  • If you do not have an EIN yet, getting one before you approach a bank will speed up the account opening process.

When banks require an EIN before opening a business account

Most major banks—Chase, Bank of America, Wells Fargo, Citibank—require an EIN to open any account labeled as a business account. This is their own policy, not an IRS requirement. They use the EIN to verify your business identity and to comply with their own anti-money-laundering rules.

If you walk into a bank without an EIN and ask to open a business checking account, they will tell you to get one first. The process usually takes a few minutes to a few days, depending on how you obtain it. Once you have the EIN, you can return to the bank with it and complete the account opening.

Some smaller regional banks or credit unions may be more flexible. A few will open a business account using your Social Security Number if you are a sole proprietor. Call ahead and ask—do not assume they will, but it is worth checking if you have a relationship with a local institution.

How to get an EIN without a checking account

You do not need a checking account to get an EIN. The IRS issues EINs for free through three channels: online, by phone, or by mail. The online method is fastest.

Online: Go to the IRS website and use the online EIN process tool. You answer questions about your business structure, location, and what you do. The system issues your EIN when ready on screen. You can print it or write it down. This takes about 15 minutes and requires no bank account.

By phone: Call the IRS Business and Specialty Tax Line at 1-800-829-4933. An agent will walk you through the same questions. They issue your EIN over the phone and mail a confirmation letter to you. This takes a few days for the letter to arrive, but you have the number when ready.

By mail: Fill out Form SS-4 and mail it to the IRS. Processing takes two to four weeks. This is the slowest option and only makes sense if you cannot access a phone or computer.

What information you need to get an EIN

The IRS will ask for basic information about your business. You do not need a checking account to provide this. You will need:

  • Your legal name and Social Security Number (or ITIN if you are not a U.S. citizen).
  • Your business name, if it is different from your legal name.
  • Your business address (a home address is fine).
  • Your business structure (sole proprietor, partnership, LLC, corporation, etc.).
  • A description of what your business does.
  • The date you started or plan to start the business.

None of this requires a checking account. You can have all of this information ready before you contact the IRS.

What happens if you open a business account without an EIN

Most banks will not let you. If a bank does open an account for you using only your Social Security Number, you will eventually need to provide an EIN anyway—usually within 90 days. The bank will ask for it during account maintenance or when you explore for a business credit card or line of credit.

If you do not provide the EIN when the bank asks, they may freeze the account or close it. This is because banks are required by federal law to verify the identity of business account holders, and an EIN is the standard way to do that for businesses.

The easier path is to get the EIN first, then open the account. It saves you from having to update the bank later.

EIN vs. SSN for business banking

If you are a sole proprietor with no employees, the IRS lets you use your Social Security Number for tax purposes instead of an EIN. You can file taxes, pay estimated taxes, and report business income using your SSN alone.

But banks treat business accounts differently than the IRS does. A bank's policy is their own. Most require an EIN because it is a cleaner way to separate your business identity from your personal identity in their system. A few banks will accept an SSN, but you have to ask and be prepared to hear no.

If you plan to hire employees, you must have an EIN—the IRS requires it. You cannot use an SSN for payroll.

Timeline: EIN to checking account

If you want to move quickly, here is what the timeline looks like:

  • Day 1, morning: Get your EIN online from the IRS (15 minutes). You have it when ready.
  • Day 1, afternoon: Call your bank or visit in person with your EIN and required documents. Most banks can open a business account the same day or within 24 hours.
  • Day 2 or 3: Your account is active and you can deposit checks or transfer money.

If you use the phone method to get an EIN, you have the number the same day, but the IRS mails a confirmation letter that takes a few days. Most banks will accept the number you received by phone and let you provide the letter later. Call ahead and ask what they need.

Frequently Asked Questions

Can I use my Social Security Number instead of an EIN to open a business checking account?

Some banks will, but most will not. It depends on the bank's policy and your business structure. Call your bank and ask before you go in. If they say no, getting an EIN takes 15 minutes online.

Do I need a business address to get an EIN?

No. A home address works fine. The IRS just needs to know where your business is located, even if it is your kitchen table.

What if I get an EIN but never open a checking account?

That is fine. An EIN is a tax ID. You can have one and never use it for banking. Some people get an EIN to hire contractors or to separate business and personal finances on their taxes, without opening a separate bank account.

How long does it take to get an EIN if I explore by mail?

The IRS typically processes Form SS-4 in two to four weeks. This is much slower than online or phone. Use the online method if you can—it takes 15 minutes.

Will a bank let me open a business account if I have an EIN but no business license?

Yes. A bank requires an EIN, not a business license. Business licenses are issued by your city or state and are separate from banking. You can have an EIN without a license, though some states require a license before you operate.