If you’re a business owner, you may be wondering if you need an EIN to open a bank account for your LLC. The answer is… it depends. In this blog post, we’ll break down the requirements for opening a bank account for your LLC and explain when an EIN is necessary. Keep reading to learn more!
What is an EIN?
An EIN is an Employer Identification Number which is also sometimes referred to as a Taxpayer Identification Number (TIN). It is a unique nine-digit number assigned by the IRS and is used to identify businesses for tax purposes.
You can apply for an EIN online, by fax, or by mail. If you’re applying for your EIN online, you will need to have your LLC’s formation documents handy as you will need to provide information about your business.
As a US person (citizen or green card holder), the process takes about 10 minutes. You will receive your EIN immediately after applying.
For non-US persons, the process is more complicated and can only be done in paper form either by mail or fax.
Whether or not you need an EIN to open a bank account for your LLC depends on a few factors.
Who needs an EIN for their LLC?
For US residents, you may or may not need an EIN for your LLC to open a bank account. If your business is a single-member LLC, then you can use your SSN as your business tax id number.
If you have more than one member, you will need an EIN since your LLC will be treated as a partnership for tax purposes.
The bank will require either an EIN or your SSN for opening the bank account. You cannot avoid having some form of tax id number for your LLC.
For non-US residents opening an LLC in the US, you will need an EIN for your business. As a non-US resident you likely do not have a SSN, therefore the EIN will be a requirement for opening a business bank account.
This remains true for non-US residents if the business is a single-member LLC or a multi-member LLC. Regardless of your status, an EIN will be required. All US banks will need this tax id number to open your bank account.
How to apply for an EIN for your LLC?
If you need an EIN for your LLC, the application process is relatively simple. You can apply online, by fax, or by mail. We recommend for US persons applying online as it is the quickest method and you will receive your EIN immediately.
For non-US persons you are only able to apply by mail or fax.
To apply online, you will need your LLC’s formation documents handy as you will be required to provide information about your business. The entire process takes about 10 minutes and you will receive your EIN right away.
To apply by fax or mail, you can download the form here. Once you have completed the form, you can fax it to (267) 941-1099 or mail it to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
It usually takes 4-5 weeks to receive your EIN if you apply by fax or mail.
In conclusion, whether or not you need an EIN to open a bank account for your LLC depends on a few factors. If you are a US resident and have a single-member LLC, then you may not need an EIN. However, if you have a multi-member LLC or are a non-US resident, then you will need an EIN in order to open a bank account for your business. The application process is relatively simple and can be done online, by fax, or by mail.
We hope this article was helpful in answering your question! If you have any other questions about LLCs or EINs, please don’t hesitate to reach out to us. We’re always happy to help!
