If you’re starting a business, especially as a freelancer, solo entrepreneur, or small business owner, one of your first questions may be:
“Can I open a business bank account without an EIN?”
The short answer? Yes — in limited cases. While most business structures require an Employer Identification Number (EIN), sole proprietors without employees may be able to open a business account using just their Social Security Number (SSN).
What Is an EIN and Why Is It Important?
An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique nine-digit number assigned to businesses by the Internal Revenue Service (IRS). It functions like a Social Security Number for your company and is used for various tax and legal purposes.
Common Uses of an EIN:
- Filing federal and state taxes
- Opening business bank accounts
- Hiring employees
- Applying for business credit or loans
- Setting up a payroll system
- Registering for certain business licenses and permits
Even if you don’t technically need an EIN, it’s often required by vendors, clients, and financial institutions. It signals that you’re operating as a legitimate business and not just an individual.
When Can You Open a Business Bank Account Without an EIN?
In most cases, banks require you to provide an EIN to open a business checking or savings account. However, sole proprietors who are not hiring employees and who operate under their own name may qualify to open a business account using only their SSN.
Basic Requirements for EIN-Free Business Accounts:
- Business is a sole proprietorship
- Owner has no employees
- Owner is operating under their legal name or a registered DBA (Doing Business As)
- Bank accepts SSNs in place of EINs
Acceptable Documents:
- A valid government-issued photo ID (e.g., passport or driver’s license)
- Social Security Number
- DBA certificate (if using a business name other than your legal name)
That said, many banks still prefer or require an EIN even in these cases to simplify compliance and reporting.
Who Cannot Open a Business Bank Account Without an EIN?
If your business falls under any of the following categories, you are required to get an EIN before opening a business bank account:
EIN Required For:
- LLCs (Single-member or multi-member)
- Corporations (C or S Corps)
- Partnerships
- Businesses with employees
- Non-U.S. residents forming a U.S. business
These structures are considered separate legal entities from the owner, and as such, the IRS mandates EIN registration.
Real-World Scenarios
Scenario 1: Freelance Designer Operating as a Sole Proprietor
Sarah is a freelance designer working from home. She uses her own name for all projects, has no employees, and earns under $50,000/year. She opens a business account with her SSN and a valid ID at her local credit union.
EIN not required
Bank accepted her application
She still applies for an EIN later to protect her SSN
Scenario 2: Tech Consultant with an LLC
David registers an LLC for his IT consultancy business. Although he’s the only member and has no employees, he cannot open a business bank account without an EIN because the LLC is a separate legal entity.
EIN required
Bank will reject SSN-only application
He applies for an EIN and opens the account successfully
Which Banks Allow Business Accounts Without an EIN?
Each bank has its own policies, and they may vary by state or region. Generally, large traditional banks are more flexible with sole proprietors, while online banks are stricter.
Traditional Banks That May Allow SSN-Only Accounts:
- Chase: May accept SSN + DBA for sole proprietors
- Bank of America: Flexible with personal accounts used for business
- Wells Fargo: Case-by-case basis
- Local credit unions: Often more accommodating
Online-Only Banks (EIN Usually Required):
- Mercury: Requires EIN and U.S. address
- Relay Financial: EIN required for LLCs
- Bluevine: EIN required
- Novo: Usually requires EIN
Even when not strictly required, banks may ask for EINs to reduce fraud risk and streamline tax reporting.
Document Requirements Comparison
| Document Type | Sole Proprietor (No EIN) | LLC / Corporation |
|---|---|---|
| Government-issued ID | yes | yes |
| Social Security Number (SSN) | yes | yes (for ID) |
| EIN | Optional (Preferred) | yes, Required |
| DBA Registration | yes (if applicable) | yes |
| Articles of Organization | no | no |
| Operating Agreement | no | yes (LLC only) |
Benefits of Getting an EIN (Even If Not Required)
Here’s why applying for an EIN is a smart decision, even if your bank doesn’t require one:
1. Protect Your Identity
Using your SSN for business exposes you to identity theft. An EIN serves as a buffer.
2. Business Credibility
Clients, platforms like Stripe/PayPal, and vendors often expect an EIN as part of your business setup.
3. Banking and Credit Access
Having an EIN simplifies opening accounts and applying for:
- Business credit cards
- Loans or lines of credit
- Payment processors (e.g., Stripe, Square)
4. Future-Proofing
Planning to grow your business, hire staff, or change structure later? Start with an EIN.
5. Fast and Free from the IRS
You can apply online at the IRS website. Or get help from companies like FormLLC to fast-track the process.
Non-U.S. Residents: You Must Have an EIN
If you’re a non-resident looking to open a business account in the United States, you must have:
- A U.S. LLC or corporation
- A valid EIN from the IRS
- A U.S. mailing address (or virtual office)
- Business documents (Articles of Organization, Operating Agreement)
- A passport or foreign national ID
FormLLC Makes It Easy for Non-Residents:
- EIN from IRS in 24–48 hours
- U.S. LLC formation
- Bank account setup guidance
- Business email, phone, and address
How to Apply for an EIN
- Visit the IRS EIN Application Page
- Fill in your business details
- Submit and download confirmation letter
OR use a formation service like FormLLC to do it faster with express delivery and expert help.
How FormLLC Helps You Start and Scale
FormLLC specializes in U.S. business formation for both residents and international entrepreneurs:
Services Offered:
- EIN from the IRS in 24–48 hours
- LLC formation in all 50 U.S. states
- BOI Report (FinCEN) filing
- Registered agent services
- Business email, domain, and phone
- Dashboard to manage documents
📧 Email: contact@formllc.us
🌐 Website: www.formllc.us
📱 WhatsApp: +91 6202619173 | +1 3322662187
Final Thoughts
So, can you open a business bank account without an EIN?
Yes — if:
- You’re a sole proprietor
- You have no employees
- You’re using your legal name or a DBA
- Your bank accepts SSNs for business accounts
No — if:
- You operate as an LLC, Corporation, or Partnership
- You plan to hire employees
- You’re a non-resident
Pro Tip:
Even if your bank doesn’t require an EIN, get one anyway. It protects your privacy, builds credibility, and sets you up for success.
Let FormLLC help you do it right from day one — fast, secure, and hassle-free.
Yes. If you’re a freelancer operating under your legal name and without employees, you may be able to open a business account using your SSN — but an EIN is still recommended.
You may be more exposed to identity theft. An EIN separates your personal and business finances and is safer for online payments and taxes.
Yes — but only if you have a U.S. business entity, EIN, and required documents. FormLLC helps with all of this.
FormLLC can get your EIN in 24–48 hours. Direct IRS applications may take longer, especially for international applicants.
Mercury and Relay are popular for non-residents, but they require an EIN and U.S. business documentation.
Want expert help getting your EIN, forming an LLC, or opening a U.S. business account? Reach out to FormLLC today.
Ready to start your business the right way?
📧 contact@formllc.us | 🌐 formllc.us | 📱 +1 3322662187
Thanks for breaking this down — I always assumed an EIN was required no matter what. It’s good to know that sole proprietors might have some flexibility, though it sounds like getting an EIN is the safer route overall.
Thanks so much for your comment! You’re absolutely right — many people assume an EIN is mandatory across the board, so it’s great to clear that up. Sole proprietors do have some flexibility, but as you mentioned, getting an EIN is usually the safer and smarter move long-term. It adds a layer of protection and opens up more options down the line. Glad you found the breakdown helpful!
While it’s good news that some sole proprietors can skip the EIN when opening a business account, I’d still recommend getting one. The long-term benefits in terms of organization and tax management seem to outweigh the hassle.
Absolutely agree with you! Even though skipping the EIN might work in some cases, having one really helps keep things clean and separate — especially when it comes to taxes and scaling your business later. It’s a small step that brings a lot of long-term clarity and professionalism. Thanks for sharing your perspective!