EIN

[wealthpro]

Hello,

I have another question about setting up a insurance business.

So I have decided not to use the LLC that I already have for another business. Instead, I am creating a sole proprietorship. I registered the fictitious name with the state. I set up a bank account under my SSN since it was a sole proprietorship. Now my bank can't open up an online banking account under the business because my SSN is already listed with other personal accounts. There is a work-around, but it is kind of a pain and I would have to start paying a fee for my personal online bill pay. So can I get an EIN and use it with the carriers? If so, would the business have to register for life insurance license in the states that I work in? The other option would be to set up at a different bank.
Thanks,
David

 

[marindependent]

Now my bank can't open up an online banking account under the business because my SSN is already listed with other personal accounts.

Find a new bank.

Dont get an EIN number just because of your bank issue. Ask your future insurers if they require an EIN. I do not recall having to have one just to open up a business bank account, but I could be wrong. But the song and dance that bank is giving you seems most odd,.

Frankly if you are new to insurance, I would just start off by doing things under your name as a sole prop and not worry about the business creation side just yet. Make sure you get a good E&O policy and work with a legit MGA. Make a couple hundred K and then you can come back to this other stuff later.

Best of Luck

 

[adjusterjack]

I agree. Find another bank.

I have had multiple accounts with one bank. One for business and one for personal.

 

[LostDollar]

I agree. Find another bank.

I have had multiple accounts with one bank. One for business and one for personal.

(caveat, not an agent)

I think op is saying he already has at least one business account and more than one personal account at this institution. There seems to be a problem opening a SECOND business account with his SSN.

 

[Tahoe Ray]

(caveat, not an agent)

I think op is saying he already has at least one business account and more than one personal account at this institution. There seems to be a problem opening a SECOND business account with his SSN.

Like others have said, find another bank. I have multiple bank accounts under the same tax ID at the same bank (business and personal in some cases).

I don't even know why a bank wouldn't allow this.

 

[Markthebroker]

Agree. I have multiple business accounts and multiple personal accounts at one bank. You should be able to, too.

 

[DHK]

Former banker here (although it's been over 15 years):

To open a business account as a sole proprietor, all you need is your fictitious name statement or DBA filing with your county or state (whatever it is for you). That's all the documentation that is required (other than your personal ID, etc.).

An EIN number is not required for a DBA/FNS account.

An EIN number IS required for a partnership, LLC, and corporations along with the original legal filings as required in each state.

If your bank is requiring an EIN for a sole proprietor account... they don't know what they are talking about.