I Want to Open a Bank Account for My New Business. Do I Need an EIN?

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An employer identification number (EIN), also known as a federal tax identification number, is a set of nine unique digits that enables the Internal Revenue Service (IRS) to identify your company as an operating entity within the United States of America. It also allows you to conduct tax-related business, open a company bank account, and more.

Do I Need an EIN?

The Internal Revenue Service (IRS) requires a company to have an employer identification number if it has workers, is part of a Keogh plan, is involved with trusts, estates, non-profit organizations, farmers’ cooperatives, real estate mortgage firms, or files tax returns for alcohol, employment, excise, firearms, or tobacco. If this is the case with your company, banks might require you to have an EIN if you intend on opening a business bank account. For example, Bank of America requires companies to present an employer identification number to set up an account.

Apply for an EIN

Having an EIN is a useful way to separate your company assets from your personal ones. Failure to do this could lead to bankruptcy. IRS-EIN makes it easy to register for an EIN via the EIN online application page. We only use safe and secure features to ensure that you’re getting the best possible services available.

What Banks Require and Why

More broadly, banks want to make sure you actually have a business, are the legal, declared owner of that entity and have the right to sign checks, send payments and control the finances of that organization. They also want to make sure that you are not erroneously acting as the decision maker for that business and that you are not exposing yourself, or the financial institution itself, to dangerous business practices that could negatively affect you or it.

Consequently, many banks look for proof of your ownership. That starts with a separate EIN, which is easily obtainable through www.irs-ein-tax-id.com. Some banks also require other documentation, such as a business license. You may also have to provide the legal name of your business, known as the “DBA,” or “doing business as” moniker, as well as your business address.

Sanity and Security

Even though not every bank requires an EIN to open a business account, there are still reasons to have one. Most importantly, an EIN gives you a clear way to keep your business and personal finances separate. This is very important for tax-filing purposes, as well as for the health of your business. In addition, confusing or mixing the two can also put your company at risk in both the corporate and personal sense. For instance, you could inadvertently expose yourself to personal liability if you are not treating your business as a separate entity. That could end up bad for not only you, but your company, shareholders and clients, as well.

If you are uncertain, log on to www.irs-ein-tax-id.com and get the information you need to make the right decision for you and your company.

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