Open a Business Bank Account Without an EIN

Can I open a business bank account without an EIN?

Yes, you can open a business bank account without an EIN in many cases, particularly if you’re a sole proprietor or sometimes even a single-member limited liability company (LLC). Instead of an EIN, the bank will typically ask for your Social Security number (SSN) or individual taxpayer identification number (ITIN) to verify your identity and meet federal know-your-customer (KYC) requirements.

That said, bank policies differ. Some financial institutions welcome sole proprietors who use their SSN, while others require an EIN regardless of your business structure. Multi-member LLCs, partnerships and corporations almost always need an EIN because the Internal Revenue Service (IRS) classifies them as separate tax entities. Before you head to a branch or start an online application, confirm the current policy with the specific bank you’re considering.

Who can (and can’t) bank without an EIN?

Whether you can skip the EIN depends almost entirely on how your business is legally organized. Here’s a quick breakdown by entity type.

Sole proprietors

Sole proprietors are the most likely candidates to open a business account using just an SSN or ITIN. Because a sole proprietorship isn’t a separate legal entity (i.e., it’s simply you doing business under your own name or a trade name) many banks treat the account as an extension of your personal banking relationship. You’ll still need to prove you’re conducting legitimate business activity, but an EIN isn’t mandatory at most institutions.

According to the U.S. Census Bureau, nonemployer firms (primarily sole proprietorships) accounted for roughly 27.9 million businesses in recent data, making this the most common structure among new entrepreneurs. If you’re in this group and don’t yet have employees or a partnership, the SSN route is often the simplest path forward.

Single-member LLCs

Single-member LLCs occupy a middle ground. For tax purposes, the IRS treats a single-member LLC as a “disregarded entity” by default, meaning income and expenses flow through to your personal return using your SSN. Some banks recognize this and allow you to open an account with your SSN, especially if you’re operating under your personal name.

However, many banks still prefer or outright require an EIN for LLC accounts, even when you’re the sole member. The reason is risk management: banks want a clean separation between personal and business liability, and an EIN reinforces that distinction. Always verify the policy before applying, and be prepared to obtain an EIN if the institution insists on it.

Multi-member LLCs, partnerships and corporations

If your business has more than one owner – whether it’s a multi-member LLC, a general or limited partnership, or any type of corporation (C-corp or S-corp) – you will almost always need an EIN. The IRS requires these entities to file separate tax returns, and banks follow suit by requiring a federal tax ID for account opening. There’s no workaround here: plan to apply for an EIN before you start shopping for business accounts.

Banks that may accept SSN/ITIN (no EIN) for sole props

A growing number of online and traditional banks understand that sole proprietors and some single-member LLCs want to get started quickly without waiting for an EIN. While we can’t endorse specific institutions (policies change frequently and vary by state), several well-known national and regional banks have historically allowed business account applications using an SSN or ITIN for qualifying sole proprietorships.

Examples of institutions that have offered this option in the past include large national banks with robust online platforms, community banks focused on local small-business lending and digital-only business banks designed for freelancers and gig workers. The key is to confirm the current requirements directly with the bank before you apply. Ask specifically:

• Do you accept SSN or ITIN for sole proprietor business accounts?
• What additional documents will I need to provide?
• Are there any restrictions on account features if I don’t have an EIN?

Keep in mind that even when a bank accepts your SSN, you may face limitations; for example, lower transaction limits, fewer integrations with accounting software or requirements to upgrade to an EIN-backed account if you later add employees or incorporate.

What documents do I bring if I don’t have an EIN?

Opening a business account without an EIN doesn’t mean you can walk in empty-handed. Banks still need to verify your identity, comply with federal anti-money-laundering rules and confirm that your business is legitimate. Here’s what you should gather before you apply.

• Government-issued identification: You’ll need a valid driver’s license, state ID or passport. If you’re a non-U.S. citizen, an ITIN and passport are typically acceptable. The bank will photocopy or scan these documents as part of their KYC process.
• Social Security number or ITIN: This is your tax identifier in lieu of an EIN. The bank will use it to run credit checks (if applicable) and report interest or other taxable activity to the IRS. Make sure you have the number memorized or written down securely.
• Doing-business-as (DBA) certificate or fictitious name filing: If you operate under a trade name, such as “Lopez Landscaping” instead of “Maria Lopez”, most banks require proof that you’ve registered that name with your county or state. This is usually a DBA certificate or fictitious business name statement. If you’re simply using your legal name for business, you may not need this.
• Formation or ownership documents: Even as a sole proprietor, some banks ask for proof of business existence. Some examples include a business license, professional license or articles of organization if you’re a single-member LLC. Have digital and physical copies ready.
• Business address and contact information: You’ll need to provide a physical business address (a P.O. box often isn’t sufficient for the primary address) and a phone number. If you work from home, that’s usually fine, just be prepared to explain your business model if asked.

Why getting an EIN anyway is a smart move

Even if a bank will let you open an account with just your SSN or ITIN, there are compelling reasons to apply for an EIN before you start banking. The process is free, fast and can unlock significant advantages as your business grows.

Privacy and security

When you use your SSN for various business purposes, you’re exposing your personal identifier over and over again. An EIN functions as a firewall, keeping your SSN out of the hands of third parties and reducing the risk of identity theft. If a vendor’s system is breached, your EIN is compromised, not your Social Security number.

More banking options and better features

Many premium business accounts, credit cards and lending products require an EIN. If you want access to higher transaction limits, integration with payroll services or the ability to add authorized signers, an EIN often opens those doors. Starting with an EIN also means you won’t have to re-apply or re-paper your account later when your needs evolve.

Preparing for employees and growth

The moment you hire your first employee – even a part-time contractor in some cases – you’ll need an EIN to withhold payroll taxes and file employment tax returns. If you’re planning to grow, it’s easier to set up your banking infrastructure with an EIN from the start rather than switching mid-stream.

Building business credit

Establishing a credit profile separate from your personal credit often requires an EIN. Business credit bureaus like Dun & Bradstreet and Experian track your company’s payment history and creditworthiness using your EIN. A strong business credit score can help you secure better loan terms, net payment terms with suppliers and lower insurance premiums.

Speed and simplicity of the application

Applying for an EIN through the IRS online EIN application is free and typically takes less than 15 minutes. You’ll receive your EIN immediately upon completion if you apply online during business hours. There’s no fee, no waiting period and no downside, making it one of the easiest administrative tasks you can check off your startup to-do list.

How to decide whether to use SSN or get an EIN

Still on the fence? Here’s a quick decision framework to help you choose the right path based on your situation.

Use the SSN or ITIN route if:

• You’re a sole proprietor with no employees and no immediate plans to hire.
• You need to open a business account today and can’t wait for any administrative delays.
• The bank you prefer explicitly accepts SSN or ITIN for your business structure.
• You’re running a very small side business or freelance operation and want minimal paperwork.

Get an EIN first if:

• You’ve formed an LLC (even single-member) or any corporation.
• You plan to hire employees or independent contractors in the near future.
• You want maximum privacy and prefer not to share your SSN with multiple vendors and institutions.
• You’re shopping for business credit cards, lines of credit or other financial products that require an EIN.
• You want the widest range of banking options and aren’t concerned about spending 15 minutes on an IRS application.

In most cases, we recommend getting the EIN even if it’s optional. The upfront effort is minimal, and the long-term flexibility is worth it. That said, if you’re truly in a time crunch and meet the criteria for SSN-based banking, it’s a viable short-term solution. Just be prepared to revisit the decision as your business evolves.