Whenever you want to open a bank account, you need to supply a tax ID number for bank account. For individual accounts, this is almost always a Social Security Number (SSN). When you are running a business, however, you may want to open an account specifically for the company. Frequently, this will require you to have an Employer Identification Number (EIN).
An Employer Identification Number is a unique number used to identify non-human entities for various purposes such as filing taxes and banking. It is used for many of the same purposes as your existing Social Security Number. However, it is specific to the business entity and, thus, can be helpful for keeping your business dealings separate from your personal ones.
Most financial institutions require an EIN for opening a business account. This is true for many other financial services as well such as applying for credit. Not all banks require an EIN, however, many do. The best way to determine whether your bank requires an EIN to open a bank account for your business is to contact the bank directly.
In addition to banking, many other business activities require an EIN. If you want to or are required to file taxes for your business entity separate from your personal taxes, you will need an EIN. If you want to employ anyone, you will also need an EIN. Even if none of these circumstances apply to you, it may be helpful to apply for EIN to simplify the process of keeping your business separate from your personal affairs.
If you want to start the EIN number process to help with opening a bank account or any other purpose, GovDocFiling can help. Simply open our EIN application and follow the instructions. It is a quick process that can be completed online. We can also help with other filings such as submitting an LLC application to create a new entity.