When you start a business, you may want to keep your business finances separate from your personal finances. One way to accomplish this is by opening a bank account in your company’s name. However, many banking institutions require that businesses have correct authorization to open company bank accounts.
You’ll need an employer identification number (EIN) to start banking in your business’s name. Here’s how to get an EIN for banking purposes only.
The quickest and easiest way to obtain a tax ID for banking purposes is using our online application. It only takes a few minutes to fill out the form and we’ll send you your EIN to your email in an hour*. Apply for an EIN online today to open a business bank account. If you’ve ever wondered, “Can I use an EIN number for banking purposes only?” then you should know that if you obtain an EIN to open a bank account, you should use it for all other business matters as well.
*Most EINs are processed same or next business day, unless bundled with state formations, processing times will vary.
Document Your EIN and Go to the Bank
Next, you’ll want to print out the confirmation email you receive or write down your EIN. Then, you’ll want to take your EIN and business registration documentation to the bank. You may also be required to show photo identification to prove to the bank that you are the responsible party for your business. You’ll be given instructions for submitting a deposit to activate your business bank account.
Apply for Credit With EIN Only
If you want to apply for a credit card, line of credit, or a loan, you will probably need an EIN as well. Follow the above steps, except contact the creditor instead of the bank–unless they are one and the same.
Filing Taxes
Now that you have your EIN for banking, you also want to use it when you file your tax returns for your business. This number is the way in which the IRS identifies your business. When you fill out your tax return, there will be a space for your identification number.
For some business entities, such as sole proprietors and certain LLCs, you have the option to use a social security number or an EIN. However, if you have already filed and received your EIN, then this is the number that you want to use. If you have employees, are a partnership or have incorporated, then you will have to have an EIN for tax purposes no matter the type of business or the size.
Other Situations to Use Your EIN
There are other situations in which you will find you need to use your EIN beyond your banking and taxes. Some applications for certain business licenses and permits require an EIN or provide the option to use whatever type of tax identification number you have. Therefore, if you have applied for an EIN for banking purposes, you will also want to use this number for these applications. You also might need to use your EIN when filling out contracts, especially if you work as an independent contractor.
Consider your new EIN as the way in which your business is identified. You might face problems if you try to use another number, like your social security number, in place of your EIN. Even though your business might not be required to possess an EIN, once you have applied for one for banking purposes, you need to use it whenever you fill out paperwork requesting an EIN. Make sure to store your EIN in a safe place, as you will not be able to apply for a new one if you lose it.
GovDocFiling is here to help you with anything related to your business. Whether you’re wondering how to use your EIN for banking or how to create an LLC, just email [email protected].
