To get an EIN for your restaurant, apply for free on the IRS website once your business entity is formed; the online application takes about 15 minutes and you receive the number immediately. With the EIN and your formation documents in hand, you can open a business bank account, usually the same week. Do both before you sign a lease, order equipment or hire anyone, because landlords, vendors, payroll providers and your payment processor will all ask for them.
What an EIN is and why a restaurant needs one
An Employer Identification Number is a nine-digit tax ID for your business, like a Social Security number for the company. You need one if you hire employees, file payroll taxes, operate as an LLC or corporation, or want to keep your personal SSN off vendor forms. Even a sole proprietor with no staff should get one. A restaurant will almost always have employees, so treat it as mandatory.
The IRS issues EINs at no charge. Sites that charge a fee to "file" for you are reselling something you can do yourself in one sitting.
Step 1: Form your entity first
The EIN is tied to your legal structure, so choose that first. If you are still deciding between an LLC, S corp or sole proprietorship, read choosing a business structure before you apply. Changing structure later can mean a new EIN and new paperwork.
Step 2: Apply for the EIN
Gather this before you start:
- Your exact legal business name as filed with the state
- Your business address (a registered agent address is fine for some entities, but the IRS wants a physical location)
- The responsible party: usually the owner, with their SSN or ITIN
- The entity type and the date you started or will start business
- The expected number of employees and first wage payment date
Apply on the IRS website during its published hours, complete the form in one session (it times out) and save the confirmation letter as a PDF. Print two copies. You will use that letter constantly.
Step 3: Choose the right bank account
Open a dedicated business checking account. Never run restaurant money through a personal account; it muddies your books, weakens liability protection and makes tax time painful. Compare these features:
| Feature | What to look for | Why it matters |
|---|---|---|
| Monthly fee | $0 to $15, waivable | Small but permanent drag |
| Cash deposit limits | $5,000+ free cash per month | Restaurants handle cash daily |
| Transaction limits | 200+ free per month | Vendor and payroll volume adds up |
| Merchant deposit speed | Next-day deposits | Protects early cash flow |
| Online and mobile tools | Mobile deposit, bill pay, exports | Feeds your bookkeeping |
| Credit relationship | Same bank offers lines and loans | Easier to borrow later |
A local community bank or credit union often beats a national bank on cash handling and relationships. Ask what they charge for coin and currency orders, since you will need change every day.
Step 4: Bring the right documents
Banks typically want:
- Your EIN confirmation letter
- Articles of organization or incorporation, plus an operating agreement or bylaws
- Government ID for every signer
- Your business license or DBA filing
- An initial deposit, commonly $100 to $1,000
Call ahead and ask which of these the branch needs. Missing one can delay opening by days.
Step 5: Set up accounts the way a restaurant actually runs
One checking account is the minimum. Better is a simple structure:
- Operating account: receives sales deposits and pays bills.
- Payroll account: funded each pay period with wages plus taxes, so payroll never bounces. See how to handle payroll and payroll taxes.
- Tax reserve savings: a separate savings account for sales tax and income tax, covered in setting up a tax reserve account.
Add a business credit card for supplier purchases only if you will pay it off monthly, and keep it separate from daily cash.
Step 6: Connect everything to your POS and books
Link the bank account to your payment processing so daily sales settle where you expect. Then connect it to your bookkeeping software so deposits and expenses categorize automatically. A POS that reports sales, tips and fees cleanly makes reconciliation faster. Cobblestone POS is free with no monthly fee, so your first deposits are not eaten by software costs the way a roughly $470-a-month competitor plan would. For the books themselves, see restaurant bookkeeping basics and setting up a chart of accounts.
Common mistakes
- Applying for the EIN before the entity exists, or under the wrong name.
- Using a personal account "just until the business account is ready."
- Forgetting to add a second signer, which blocks access if you are unavailable.
- Skipping the registered-name check, so the bank account name differs from the EIN letter.
- Not asking about cash deposit fees until the first statement arrives.
Get the EIN first, then the bank account, and keep every dollar of the restaurant in its own accounts from day one. Clean separation now saves you hours with your accountant and protects your personal assets.
Once these are done, keep moving down your launch list with licenses and permits you need to open and your first 90 days roadmap.