EIN bank account
EIN bank account is the shorthand founders use for opening a US business account using the company's Employer Identification Number as its identifier. The EIN is what makes the account the company's rather than yours, but on its own it opens nothing.
What the EIN does in a bank application
An EIN is a nine-digit number the IRS issues to a business. To a bank it is the company's tax identity, the way a Social Security Number is an individual's, and it is what lets an account be opened in the company's name instead of a person's. Every US business account application asks for one.
A non-resident can obtain an EIN without an SSN or an ITIN. The IRS online tool requires one, which is why it is unavailable to most foreign founders, but Form SS-4 filed by fax or by mail does not.
What an EIN does not do
An EIN is not an authorisation to open an account, and holding one guarantees nothing. Banks still run their own checks on the entity, its owners, its address and its intended activity, and they decline applications from companies that hold a perfectly valid EIN every day.
It also carries no credit history. A new EIN is a blank identity: there is no file behind it until accounts that report to the business bureaus are opened and used. Anyone selling an EIN as a shortcut to credit is selling the number, not the outcome.
What a non-resident needs alongside the EIN
In practice a bank asks for the formation documents, the EIN confirmation letter, a US business address, identification for the beneficial owners, and a description of the business. Requirements differ between banks and change, so confirm with the specific bank rather than relying on any published list.
The piece founders most often get wrong is the address. An address that the bank recognises as a commercial mail-receiving agency used by hundreds of other companies weakens an otherwise sound application.
Where the EIN bank account sits in the sequence
The EIN comes after the LLC exists and before the bank account, because the account is opened against it. The ITIN is a separate, personal number and is not required to obtain an EIN — a point that confuses a great many founders, and costs some of them weeks.
Founders Credit files the SS-4, obtains the EIN, and handles the banking step for non-US and European founders as one sequence rather than as separate errands.
Related
Frequently Asked Questions
Can I get an EIN without an SSN or ITIN?
Yes. File Form SS-4 with the IRS by fax or by mail and enter 'Foreign' where a responsible party's SSN or ITIN would go. The online application is the only channel that requires one, which is why non-residents use the other two.
Is an EIN the same as an ITIN?
No. An EIN identifies a business to the IRS. An ITIN identifies an individual who is not eligible for a Social Security Number. They serve different purposes and you may need both, for different reasons.
Will a bank open an account on an EIN alone?
No. The EIN identifies the company, but banks also check the entity's documents, its address, its owners and what it does. The EIN is necessary and nowhere near sufficient.
Does an EIN come with any credit history?
No. A new EIN has no business credit file attached to it. A file begins only when accounts that report to the business bureaus are opened and used in the company's name.
How long does the EIN take?
The IRS states roughly four business days when Form SS-4 is sent by fax and about four weeks by mail. Times vary, so check the IRS guidance for the current position before planning around a date.