Settled in America · Building a Business
The EIN and a real business bank account
An EIN is the business's version of an SSN — free from the IRS, issued in minutes online, and the key that opens business banking, payroll and wholesale accounts. Never pay a third-party site for one.
An Employer Identification Number, or EIN, is a nine-digit tax ID assigned by the Internal Revenue Service to identify your business for tax, banking, and hiring purposes. Think of it as a Social Security Number for your company. Getting one is free, fast, and essential if you want to open a business bank account, hire employees, or file business tax returns.
Getting Your EIN: Free at IRS.gov
The IRS offers four ways to apply for an EIN at no cost. The fastest and easiest is to apply online directly through the IRS website. If you qualify to apply online—which requires a valid Social Security Number, Individual Taxpayer Identification Number, or existing EIN, plus a US legal residence—you can receive your EIN instantly. The online application is available Monday through Friday, 7 a.m. to 10 p.m. Eastern Time. You must complete the entire application in one session; if you take more than 15 minutes without activity, you'll have to start over.
Before you apply online, you should form your business entity with your state (if you are forming an LLC, partnership, or corporation). If you do not form your entity with your state first, your EIN application may be delayed. After you submit the application, save or print your CP-575 confirmation notice immediately. This is your official proof of the EIN, and the IRS will not send you a duplicate online.
Alternative methods: Fax or mail
If you cannot apply online, you can still get an EIN using Form SS-4, the IRS Application for Employer Identification Number. Faxing Form SS-4 takes about four business days, and mailing it takes approximately four weeks. If you fax, include your fax number so the IRS can return your EIN by fax.
No SSN? You Can Still Get an EIN
Many immigrants, visa holders, and non-citizens worry they cannot get an EIN without a Social Security Number. This is not true. If you have an Individual Taxpayer Identification Number (ITIN)—a nine-digit tax ID issued by the IRS to people who must file taxes but are not eligible for an SSN—you can use it to apply for an EIN online. An ITIN serves the same purpose as an SSN for tax identification and does not require work authorization.
If you do not yet have an ITIN and cannot apply for an SSN, you can still get an EIN by filing Form SS-4 by mail, fax, or phone. Foreign nationals without an SSN or ITIN can call the IRS International EIN line at 267-941-1099 (not toll-free; long distance may apply). The line is open Monday to Friday, 6 a.m. to 11 p.m. Eastern Time. An IRS agent will help you complete the application over the phone and assign your EIN during the call. Processing by mail or fax without an SSN or ITIN may take significantly longer—potentially several months—because the IRS verifies your information more thoroughly.
Opening a Business Bank Account
Once you have your EIN, open a separate business bank account immediately. This step is critical. Using a single personal account for both your personal and business money can undermine the legal protection an LLC provides and make your taxes much harder to file.
Why separate accounts matter for your LLC
An LLC is a legal shield that separates your personal assets from your business liabilities. If your business is sued, gets into debt, or faces bankruptcy, creditors can typically only go after the LLC's assets, not your home, car, savings, or other personal property. However, this protection depends on maintaining clear boundaries between your personal and business finances. Courts can 'pierce the corporate veil'—meaning they ignore the LLC's legal protection—if you treat the business like a personal bank account or mix personal and business funds. Keeping separate bank accounts is one of the simplest and most important ways to preserve this protection.
What to look for in a business account
When choosing a bank, verify it is FDIC-insured. The Federal Deposit Insurance Corporation (FDIC) automatically protects deposits in FDIC-insured banks up to $250,000 per depositor, per account ownership category, per bank. This means that if the bank fails, your business funds are protected up to that limit. Almost all major US banks are FDIC-insured, but ask your bank to confirm before opening an account.
Business accounts are not priced the same as personal accounts. Banks typically charge monthly fees for business accounts, may impose transaction limits, and may offer lower interest rates on savings than personal accounts. Compare banks and ask about: monthly account fees, transaction limits (especially if you expect high volume), minimum balance requirements, check costs, and ACH (electronic transfer) limits. Some banks waive fees if you maintain a certain balance or keep payroll active. Others offer free or low-cost accounts for startups.
You will need your EIN and a form of ID to open the account. If you are a non-citizen or visa holder, ask what documents the bank accepts. Some banks require a US mailing address or a US phone number. Rules vary by bank and by state, so call ahead if you are uncertain.
Your Next Steps
- Verify you have a valid SSN, ITIN, or existing EIN.
- Form your business entity with your state (LLC, corporation, partnership, etc.) if required.
- Visit irs.gov, search for 'EIN,' and apply online, or file Form SS-4 by fax or mail if you do not qualify for online application.
- Save your CP-575 confirmation notice as soon as you receive your EIN.
- Compare business banking options and confirm FDIC insurance.
- Open a business bank account using your EIN and business documents.
- Keep your business and personal money separate at all times.
Keep reading — Building a Business
LLC or sole proprietorship — choosing your business structureThe moment you sell anything regularly, you have a business — the only question is its legal shape. Sole proprietorship is automatic and simple; an LLC costs a state filing fee but walls your house and savings off from business debts.
Self-employment tax — the bill nobody withholds for youWorking for yourself means nobody withholds anything. On top of income tax you owe self-employment tax — both halves of Social Security and Medicare — and the IRS expects it quarterly, not in one April lump.Always verify with official sources before acting on the information above.