Can You Open a Business Bank Account With an EIN Only?
You’ll likely need business formation documents and personal ID to open a business account, along with your EIN.
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No, you can't open a business bank account with an employer identification number (EIN) only. In addition to an EIN, you’ll probably need to provide other business paperwork — like your business license and formation documents — plus personal identification like a driver’s license.
Your bank will tell you what you need to open a business account depending on your entity type.
» MORE: Best business checking accounts
Why can’t you open a business bank account with just an EIN?
An EIN identifies a business for tax purposes. It doesn’t detail who owns that business, though. Federal law requires banks to confirm that information.
Banks must verify the identities of the people who open accounts — even if those accounts are for companies, not individuals. These “know your customer” laws help prevent money laundering and fraud.
For that reason, to get a business bank account, everyone with at least 25% ownership in a business typically needs to provide:
Name, date of birth and address.
Social Security number.
A government-issued ID.
If your business has international owners, they can usually use a passport number instead of an SSN.
Is an EIN necessary to open a business bank account?
Not for everyone. If you run a sole proprietorship or single-member limited liability company (LLC) that doesn’t have employees, you can open a business bank account without an EIN. You’ll provide your Social Security number or Individual Taxpayer Identification Number instead.
If you have a multi-member LLC or corporation, you’ll need an EIN. Banks and other companies use it to verify that your business is a legitimate entity that pays taxes.
We think every business owner should get an EIN, even if you don’t need one. The process is free and only takes a few minutes. Get started on the IRS’s website here.
Can non-U.S. citizens or residents open business bank accounts?
Yes. If you’re not a U.S. citizen and don’t have a Social Security number, most banks let you open a business account. But you still have to provide identification.
For example, Relay and Lili let you apply with a passport. Bank of America, Chase and Wells Fargo accept non-U.S. residents who have an individual taxpayer identification number (ITIN).
If your business has suppliers and customers across the world, consider a multi-currency account. These aren’t technically bank accounts, but they let you send, receive and hold funds. Wise for Business, a popular choice, requires applicants to confirm their business’s registered address. That is the location you would use to apply for your EIN.
What if your business doesn’t have an address?
Most business bank account applications require a physical business address. Many require you to provide proof, like a copy of a utility bill.
Here’s what you can do if your business doesn’t have a physical location:
Use your home address. If you work online, that may be where you do most of your work anyway.
Join a coworking space with mail service. That could also become a place where you operate your business.
Use a registered agent’s address. LLCs and corporations have to designate a registered agent, who receives mail and documents on the business’s behalf. LegalZoom and similar companies provide this service for a fee. Some business banks let you use a registered agent’s address as your business address.
Federal law requires banks to know where businesses operate, not just where they get mail. As a result, business banks generally don’t accept these addresses:
P.O. boxes.
Virtual mailboxes.
Mail services.
Can you open a business bank account with bad credit?
Yes, you can open a business checking account with bad credit. Your credit history generally doesn’t affect your ability to get a bank account.
But most banks run a ChexSystems report, which is similar to a credit check. A negative ChexSystems report might show issues like bounced checks, overdraft fees and forced closed accounts. Banks may turn you away if they think you’re high risk based on that information.
If you’re worried about providing personal information on a business account application because of such issues, there are banks that don't use this service. Here are some options for opening a business checking account with no ChexSystems report.
What is the easiest business bank account to open?
In general, online business bank accounts are easiest to open. You can fill out the application from your laptop or phone. Built-in software tools will verify that your EIN and address are real. If they are, you may be approved for an account right away.
Here are NerdWallet’s picks for the best online business bank accounts.
If a bank doesn’t approve your application, you can try a different one. There’s no risk to your credit, the way there would be if you applied for multiple credit cards.
But since all financial institutions have to follow know-your-customer laws, applications are generally similar. No legitimate institution will let you open an account without providing an SSN, passport number or address.