Can You Open a Business Bank Account With an EIN Only?

An Employer Identification Number (EIN) is a federal tax ID that acts as a business’s main identifier for tax purposes. Many entrepreneurs and business owners often ask whether having an EIN is enough to open a business bank account. The short answer is no, EIN is usually required, but it’s rarely the only thing a bank will ask for. Requirements can vary depending on the country, the type of business, and the bank itself. In this article, we’ll look at how EINs are used in banking, which businesses can use them, and what other documents you might need to provide.

Understanding EIN and Its Purpose

An Employer Identification Number (EIN) is a tax ID issued by the Internal Revenue Service or the equivalent authority in other countries. It is used to identify a business for tax reporting, hiring employees, and opening financial accounts. Depending on their structure, sole proprietors, LLCs, corporations, and partnerships may need an EIN. However, having an EIN does not automatically qualify a business for a bank account, it is just one piece of the verification process.

Why Banks Require EIN for Business Accounts

Banks use EINs to verify that a business is legitimate and meeting its tax and regulatory obligations. There is a direct link between EINs and compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) rules. EINs help financial institutions report interest, income, and account activity accurately to tax authorities. They also make it easier to keep personal and business finances separate, providing clarity for both legal and tax purposes.

Can You Open a Business Bank Account With an EIN Only?

While an EIN is an essential requirement, it is not the only one. Most banks also ask for identity and business verification documents in addition to the EIN. There are some exceptions, such as fintech platforms or online banks, which may offer simplified verification processes. Eligibility often depends on the type of business and the banking jurisdiction. Understanding the corporate bank account opening process helps prepare appropriate documentation.

Common Documents Required Besides EIN

Other than the EIN, banks require various other documents to establish legitimacy of a business.

1. Business Formation Documents

Articles of Incorporation or Organization, Certificate of Formation, or Partnership Agreement confirm the legal existence of the company.

2. Personal Identification

Government-issued ID for business owners, directors, or authorized signatories is required to verify the identity of individuals managing the account.

3. Business Address Verification

Utility bill, lease agreement, or registered agent address confirms business location.

4. Operating or Doing Business As (DBA) Certificate

Applicable if the business operates under a different trade name.

5. Ownership Structure Documentation

Shareholder list, ownership chart, or partnership details identify Ultimate Beneficial Owners (UBOs).

Types of Businesses That Can Use EIN-Only for Banking

Some types of businesses are more likely to qualify for a bank account with minimal documentation.

1. Sole Proprietorships With EIN

Some banks allow accounts to be opened with just an EIN and valid personal ID. Understanding why sole proprietors need a business bank account reveals how separation protects personal assets and simplifies taxes.

2. U.S. LLCs With Simple Ownership

Single-member LLCs with clear ownership and transparent business activity may qualify at select institutions.

3. International Companies Operating Through U.S. Entities

These companies can often open U.S. bank accounts once their EIN, incorporation documents, and tax information have been verified.

4. Fintech and Online Banking Platforms

Some digital banks simplify the onboarding process, relying mostly on an EIN and digital verification tools.

Banks and Platforms That Allow EIN-Only Applications

Fintech platforms often support startups, freelancers, and international founders with more flexible requirements. Traditional banks, on the other hand, usually still require in person verification and formal corporate documentation. Eligibility depends on the jurisdiction and the business’s risk profile.

Benefits of Opening a Business Account

Keeping personal and business finances separate makes accounting and tax filing much easier. It also enhances credibility with clients and suppliers, gives businesses the ability to apply for loans and merchant services, and makes tracking expenses and cash flow far more straightforward. Companies managing multiple entities often establish business bank accounts for holding companies to organize structures properly. Ascot provides business consulting services anywhere in the world, assisting entrepreneurs globally with account opening requirements across jurisdictions.

Challenges and Limitations of Using EIN Only

Practical difficulties come with relying solely on an EIN.

1. Bank-Specific Policies

Some banks have internal policies requiring additional documentation, even for verified EIN holders.

2. Identity Verification Requirements

Individuals must still undergo identity checks for compliance.

3. Restricted Account Features

Accounts opened with limited verification may not offer full services such as wire transfers or credit options.

4. International Banking Restrictions

Non-resident businesses may face stricter due diligence requirements despite having an EIN.

Step-by-Step Process to Open a Business Account Using an EIN

Start by obtaining your EIN from the IRS or the equivalent authority in your country. Next, choose a bank or financial institution that supports your type of business and prepare any additional documentation they may require. Complete the necessary KYC and AML checks during the onboarding process, and deposit the minimum opening balance if needed. Finally, activate your online banking and confirm your account credentials to get full access.

How to Choose the Right Bank or Platform

When choosing a bank, compare traditional and digital options in terms of flexibility and accessibility. Take a close look at fees, transaction limits, and currency support, and verify international banking capabilities if your business operates globally. It’s also important to consider the quality of customer service and the bank’s reliability in terms of compliance.

Compliance and Legal Considerations

Banks are required to follow both national and international regulations. Even with an EIN, businesses must be transparent about ownership and their operations. Providing false or incomplete information can lead to account denial or closure. Staying compliant helps ensure uninterrupted access to banking services.

FAQs

Can you open a business bank account with an EIN only?

In most cases, no. Banks typically require additional documents to verify the company’s legitimacy and ownership.

Do I need a personal SSN if I already have an EIN?

Some banks still request an SSN for identity verification, especially for single-member LLCs and sole proprietorships.

What type of businesses qualify for EIN-only banking?

Certain LLCs, partnerships, and corporations may qualify if they meet all compliance and documentation requirements.

Can non-U.S. residents open accounts with an EIN?

Yes, but they must provide valid international identification and company formation papers.

Which banks allow EIN-only accounts?

Some fintech and digital banks allow simplified setups, while traditional banks often require in-person verification.

What happens if I use my personal bank account instead?

Mixing personal and business finances can cause legal, tax, and compliance complications.

Is EIN required for all businesses?

No, some sole proprietors can operate using their personal tax identification number instead.

References

Internal Revenue Service. (2024). Employer identification number (EIN). https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers

Lane, R. (2024, July 30). Can you open a business bank account with an EIN only? NerdWallet. https://www.nerdwallet.com/article/small-business/open-business-bank-account-ein-only

Brex. (2025, August 19). Do I need an EIN to open a business bank account? Brex. https://www.brex.com/spend-trends/business-banking/do-i-need-an-ein-to-open-a-business-bank-account

Financial Crimes Enforcement Network. (2024). Customer due diligence requirements. U.S. Department of the Treasury. https://www.fincen.gov/resources/statutes-and-regulations/cdd-final-rule

Management.org. (2022, November 16). How to open a business bank account with EIN only. Management.org. https://management.org/how-to-open-business-bank-account-with-ein-only