I opened a business checking account last year using my SSN. If I get a federal EIN, can my bank update this or do I need to open a new account?
Basically, at the time I opened the checking account, I did not have a Federal EIN and did not need one as a sole proprietor.
I'm getting ready to work with some new clients and will first apply for an EIN to protect my SSN, I'm hoping US Bank can just update that information. Does anyone have experience with this?
Is there anything else I need to know about obtaining an EIN after running the business for 3 years using my personal SSN?
Also, my business checking and personal checking are both with the same bank, and I can see both accounts in my online banking portal. The advantages are in the ease of transfer of funds to and from the business, but what are the disadvantages?
I have done this so yes it's possible to have it changed all though it may be bank specific based on their rules. Worst case you close your original account and open a new one with the EIN number.
On the other part of your question concerning the same bank for commercial vs personal accounts I have thought about this a lot and have gotten advice from different people in different professions and the overwhelming response from business owners was to have it all separated using different banks. The bank personnel I talked to said it didn't matter but they just want your business. The reality is that if you are ever audited you can show the auditor that you have a clear distinction between your different accounts and can show an easy to follow money trail from your business activities, so based on this I would highly recommend using a separate bank for your commercial account. Its just a better way of doing business. As for the transfers you can always write a check which is an easy way to track that money as well.
Also, if you're banking with US Bank, just take your EIN letter into them, and they can update your account right there on the spot.
Give your clients your EIN and have them write the checks to your business name.
The checks from your clients won't have the EIN, so it won't be a problem to deposit them as long as your business name is on the bank account.
If it was me I'd fix the bank account at my leisure; though your accountant might disagree.