Overview of Banking Requirements for LLCs
Technically, single-member LLCs and sole proprietorships are not required to have an EIN as they are taxed as individuals. Instead, you can simply open a bank account without an EIN. Some institutions may be open to using your Social Security Number (SSN) to register so it is worth checking first.
Benefits of Having an EIN for LLCs
With an EIN, it may be easier to open a business bank account in the name of the LLC. Some companies may require a taxpayer identification number to process payments. Providing your social security number could expose you to identity theft. Instead, you can provide your LLC’s EIN.
Applying for an EIN
You can apply for an EIN by mailing or faxing your completed Form SS-4 to the IRS. When sending your form via fax, you can expect a reply within four business days if you provide a return fax number.
In most cases, you’ll need an EIN to open a business bank account, especially for corporations, partnerships, and those with employees.