Do you need an EIN to open a bank account?
An Employer Identification Number (EIN) — also called a Federal Tax Identification Number is the number to identify what you are doing as a company in the US and track all paths of the company. It permits you to conduct tax-related business and so on in the US.
Do I have to obtain an EIN?
The IRS makes it obligatory to have an EIN if you have employees, are a part of Keogh plan, involved with trusts, estates, NGOs, farmers’ cooperatives, files tax returns for alcohol, employment, excise, firearms and tobacco. If you intend on opening a business bank account, you are required to have one.
Application for an EIN
The best and easiest way to apply for an EIN is online. Otherwise, it takes about three weeks to get it.
Why does a bank need an EIN?
If you have an EIN, it shows that you have a company and are doing business. It shows that you have the right to sign checks, send payments and control the finances of that organization. Many banks look for the proof of ownership in your company. This begins with a separate EIN. Some banks may require other documents like a business license and so on. You must provide the official name of your business, DBA – doing business as a moniker as well as the address of your business.
Not every single bank requires to have an EIN to open a business account, but there are still many reasons why you want to get one anyway. An EIN gives you a clear way to keep your business and personal finances separate. This is very crucial for your company for tax-filing purposes and the health of your business. On the other hand, you are in need to differ your personal and business accounts. So, having an EIN makes it easier.
We have the services to provide an EIN for you. Do not hesitate to contact us.