Can You Get An EIN Strictly For Banking?
When it comes to opening a merchant bank account, you may think that you have to start a business to do so. After all, it’s designed for companies, not private use, which means that your social security number won’t cut it. However, is there a way that you can open such an account without going through the hassle of starting a brand new business? With an EIN application, you can. Let’s see how this process works.
What is an EIN?
An Employer ID Number is a necessary part of any new company. It is provided by the IRS, and it allows you to register your business as a unique entity. Since most new owners don’t want their own finances tied to the company, having an EIN is a great way to keep things separate. This means that debts and accounts are linked to the business, not to you.
This Tax ID is also necessary if you plan on hiring employees since you won’t be able to do so without one. Certain business entities (such as corporations) cannot be started without an EIN.
EIN and Banking
One of the benefits of having this number is that you can open a merchant account with most large banks. You may also be able to start a line of credit. Since the EIN is not tied to your personal credit history, banks are more willing to provide such accounts to businesses.
But do you have to register a new company to get an EIN? It turns out that you don’t. On the application, there is a box that allows you to use the ID “for business purposes only.” This way, you don’t have to do the extra steps of forming a legal entity or filing for a business license in your state.
How to Get an EIN
Fortunately, the process is super easy. You can download the form and submit it online. Usually, you can verify an EIN number within a day or so, which means you can open an account shortly after.
Overall, getting an EIN is a smart way to manage your finances, with or without a business.