GN65

I have a customer who has used their state tax ID for filing for their sole prop business. It's a DBA and our bank requires them to get a EIN (Fed Tax ID) .... they don't want to. We feel our only options for them is open the account under their SSN or obtain an EIN. We cannot open an account with the State Tax ID .... any thoughts .... legal reasons they have to go get one?

AnnaBelle

There's no legal reason they need to get an EIN for their sole proprietorship. In fact, the IRS will tax them based on their SSN, on Schedule SE, by definition of the "sole proprietorship."You will have to open the account under their SSN; a bank can't open an account with no tax reporting whatsoever. The customer will find this to be true, no matter where she tries to bank, if it is in the U.S.

Val8078

You are not making any sense! There is no federal or state law requiring someone to get a EIN number for a sole proprietor company and/or a company using a DBA. A person's social security number is their tax ID number. I have been doing this for over 35 years,I have two accountants and no bank has ever told me to get a EIN. It even state on the Federal Income Tax form to right your EIN number or the individual owners SS number.