Can You Open a Business Bank Account With an EIN Only? Here’s What to Know
Dylan Gans
September 10, 2025 ⋅ 9 min read
A familiar scene: A founder forms an LLC, gets an EIN, and heads to open a new business bank account, only to be asked for a Social Security number.
The goal is straightforward: Privacy, legitimacy, and a clear separation between personal finances and business finances. The reality is that an “EIN only” approach can work in narrow cases, but most financial institutions still require a responsible person’s taxpayer ID to verify identity.
This article explains when an EIN can be beneficial, when it can’t, and how to set up business banking in a way that builds credibility with lenders and future buyers, including the 3-step process of selling a business when the time comes.
What an EIN Is, and Why Banks Care
Before tackling account opening rules, it helps to clarify the role of an EIN. The Employer Identification Number is the federal tax ID number issued by the Internal Revenue Service (IRS) to identify a business for tax reporting.
It’s required for payroll, many licenses, and opening accounts, and it helps create a clean separation between the business’s tax identification number and an owner’s personal data. The IRS issues EINs online for free via the IRS EIN application.
EINs matter for banking because they serve as the anchor for a business's identity in tax records. But they don’t replace the bank’s legal obligations to verify the people who control the account, more on that just ahead. For owners ultimately planning to sell, opening a dedicated account early sharply reduces commingling and helps document clean cash flow.
Can a Business Open a Bank Account With an EIN Only?
Sometimes, particularly for certain entity types with complete documents and the right bank. But “EIN only” is not the norm, and requirements differ by institution, product, and risk policy.
Banks and credit unions must verify the identity of the individual(s) behind a business account under Customer Identification Program (CIP) rules. Typically, this means collecting a taxpayer identification number (e.g., SSN or ITIN) for a U.S. person before account opening, along with other core details, as outlined in the FDIC's CIP guidance.
Additionally, the FinCEN Customer Due Diligence (CDD) rule requires banks to identify and verify the beneficial owners of legal entity customers.
When EIN Might Be Enough
Institutions sometimes rely more on business credentials when an organization is clearly formed and well-documented. A limited liability company (LLC), S corporation, C corporation, or nonprofit with a complete file can be a candidate to open a new business checking account with minimal personal documentation.
Expect to provide:
EIN confirmation (CP 575) or a Letter 147C from the IRS
Articles of Organization or Incorporation and any corporate bylaws
Operating agreement (for an LLC)
A valid U.S. business address and business registration evidence
At least one person’s government-issued ID (driver’s license or passport)
Some online-first providers streamline the online application process, allowing an owner to open an account online; however, streamlined does not mean no identity checks. CIP/CDD still applies, even for online business checking accounts.
When an SSN Is Still Required
A sole proprietorship or single-member LLC taxed as a disregarded entity is most likely to be asked for an SSN or ITIN for identity verification. Even when an EIN exists, CIP requires collecting a U.S. person’s TIN before opening most accounts (credit products can follow different rules). The bank will also need details on beneficial owners for legal entities under the CDD rule.
A practical nuance: In 2025, federal agencies issued an order allowing banks to use an alternative method to obtain TIN information from approved third parties, rather than directly from the customer, in certain scenarios.
The exemption is optional and does not remove identity verification; it changes the collection channel. Owners should confirm the institution’s current policy. See the FDIC’s announcement.
What Banks Really Require
Requirements vary by institution and account type, but federal rules provide a consistent foundation.
Here’s a practical checklist to set the account opening process up for success:
EIN letter: CP 575 or a 147C verification letter if the original is unavailable (requestable via the IRS website).
Business formation documents: Articles of Organization/Incorporation, operating agreement, or corporate bylaws.
Business license (if applicable) and business address.
Valid identification for authorized signers.
SSN/ITIN of the responsible person for identity verification (especially for a sole proprietorship or single-member LLC).
Beneficial owners' information (names, dates of birth, addresses, ownership/control percentage).
It’s worth asking pointed questions before submitting an online application: Which IDs are required? What’s the minimum opening deposit or initial deposit? Do a monthly service fee or monthly maintenance fee, transaction fees, overdraft fees, or minimum balance requirements apply, and do minimum balances vary by account tier?
Pros and Cons of Aiming for “EIN Only”
Before chasing an EIN-only setup, it’s helpful to weigh the tradeoffs with an eye toward compliance, privacy, and long-term credibility.
Pros:
Limits unnecessary exposure of a personal SSN when a business’s tax identification number is already on file for some steps.
Reinforces separation from a personal account, useful for tracking business income and business expenses and building business credit history over time.
Signals professionalism to vendors and customers; standardized statements simplify bookkeeping and cash flow analysis.
Cons:
Most financial institutions will still require a responsible person’s TIN to satisfy CIP, especially for a new business bank account at a traditional bank or credit union.
“EIN only” approvals are not widely accepted; approval odds depend on entity type, the bank, and risk profile.
A sole proprietorship usually can’t avoid providing an SSN due to how the IRS treats the entity for tax purposes.
Bottom line: Treat “EIN-only” as a tactic, not a rule; lead with the EIN where it’s accepted, but plan to verify a responsible person when asked.
Go in with formation docs and banking-ready financials, and be willing to pivot if policy requires an SSN. The real win is a compliant setup that protects privacy while building durable banking relationships and credit in the business’s name.
Common Myths (And the Reality)
Misunderstandings waste time and can even lead to frozen accounts.
Three myths worth clearing up:
Myth: “If there’s an EIN, an SSN isn’t needed.”
Reality: CIP generally requires collecting a TIN for U.S. persons and verifying identity, even when an EIN exists. Limited exemptions change how TIN is collected, not whether identity is verified.
Myth: “Online business checking accounts skip verification.”
Reality: Online banking providers verify identity, often with modern third-party tools, but they still follow CIP and CDD requirements for beneficial owners.
Myth: “Open now, fix the paperwork later.”
Reality: If business identity, formation documents, or ownership details don’t match, banks can restrict or close accounts. Owners should align business registration, beneficial owners, and authorized signer details before going live.
Don’t bank on loopholes, bank on readiness. Expect identity checks, match every detail across formation docs, ownership, and signers, and keep EIN, SSNs/TINs, and proof-of-address handy.
Treat “EIN-only” as a nice-to-have, not a guarantee, and you’ll avoid freezes, rebuilds, and surprise denials while keeping privacy and compliance intact.
How to Set Up Business Banking the Smart Way
The right setup protects privacy, helps save money on avoidable fees, and lays a foundation for credit and, eventually, sale-readiness. These steps help owners move confidently.
1. Choose the Right Entity and Document It
A limited liability company (LLC), corporation, or limited liability partnership with clear business formation documents and corporate bylaws typically experiences fewer hurdles. Complete the registration first, then request an EIN through the IRS website. Keep the CP 575 (or request a 147C if it’s missing).
2. Compare Account Types and Costs
Evaluate a business checking account, savings account, and money market accounts. The minimum opening deposit and minimum balance vary by provider, and the minimum balance also varies by tier.
Confirm any monthly maintenance fee or monthly service fee, transaction fees, and overdraft fees, and how to waive them. Look for online banking, the ability to accept cash (if needed), and features to transfer money easily between accounts.
3. Verify Who Must be Listed
Banks will request the SSN/ITIN of a responsible person and details about beneficial owners. Clarify whether the bank can process the account online or if an in-branch visit is required, especially for businesses that handle cash.
4. Add the Tools That Create Leverage
Set up merchant services to streamline receivables, then connect accounting software to categorize business income and personal expenses separately. Consider a business credit card to begin building business credit and a broader credit history; early underwriting often references the responsible individual.
5. Choose the Right Institution for the Stage
A traditional bank may offer broader branch access, while a credit union might have lower fees. Fintech-forward providers often deliver a faster online application experience for a new business checking account; however, product menus and fee structures may differ. Shortlist options and confirm the account opening process, including fees and available financial tools.
6. Keep It Clean From Day One
Segregation is everything. Run all business income and business expenses through the business account.
One Baton expert put it plainly: “The better shape your books are in, the easier your sale will be.” That comes from disciplined banking, not creativity with spreadsheets. Baton’s FAQs about selling a small business reinforce how well-organized records speed diligence.
Why This Matters When It’s Time to Sell
This isn’t just a banking chore. The banking setup chosen now affects valuation, diligence speed, and buyer confidence later.
Baton’s team consistently sees that clean statements from a dedicated account make it simpler to reconcile cash flow, substantiate add-backs, and defend pricing, long before a teaser ever hits a buyer’s inbox. It also prevents confusion around what happens to cash when selling a business, a surprisingly common sticking point for first-time sellers.
Owners who think ahead can pair this foundation with Baton’s structured preparation guidance in the 8-step process of selling a business. For those building credit intentionally (and keeping personal and business profiles separate), Baton’s LLC credit score explainer shows how disciplined banking and credit practices compound into better borrowing options and smoother exits.
A Bankable Setup That Pays Off Later
Owners asking whether they can open a business bank account with an EIN only are really inquiring about how to maintain personal data privacy while establishing a legitimate separation and credibility.
Sometimes it’s possible to open an account online with minimal personal documentation, especially for corporations and LLCs with complete paperwork, but most banks still require the TIN of a responsible person and verification of beneficial owners. That’s not a barrier; it’s a prompt to set up the right accounts, choose the right partner, and build banking records that make financing and exits easier.
Baton’s perspective is pragmatic and deal-tested: Treat banking as part of the operating system. Solid accounts, consistent categorization, and clear documentation make diligence smoother and valuations more defensible, long before a buyer ever requests the data room.
Owners ready to operationalize this can begin with a free, data-backed valuation and a private seller profile; create a Baton Market account to get started.