Posted in: Tips
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 EIN (Employer Identification Number) is a unique nine-digit number assigned by the IRS to businesses for taxation and identification purposes. It provides an invaluable tool that helps organizations track financial information, comply with tax laws, open business bank accounts, and access other important services. An EIN can be used in virtually all areas of business operations from payroll processing to filing taxes – making it essential for any organization doing business today!
EIN and Banking
An EIN provides companies with access to various financial activities such as opening bank accounts and hiring employees. Banks use an EIN when setting up business accounts so that they can identify each account holder’s legal entity quickly in order to comply with federal regulations. By using an EIN, businesses are able to securely manage their finances without having personal information exposed during transactions.
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 another smart way to manage your finances, with or without a business.