Why do I need an SSN for opening a business account?

When opening a Found account, you’re asked to provide some identifying information, including your Social Security Number (SSN), even though the account is for your business. This is standard practice and serves several important compliance and verification purposes.

Compliance with Federal Regulations

Federal laws, including the USA PATRIOT Act, require banks to verify the identity of account holders to prevent fraud, money laundering, and other financial crimes. Your SSN is used to confirm your identity and ensure that Found complies with these regulations.

Tax Reporting Obligations

Your SSN may also be required for tax reporting purposes, depending on how your business is structured:

• Sole Proprietors without an EIN: If you are a sole proprietor and do not have an Employer Identification Number (EIN), your SSN acts as your business identifier for tax purposes. The IRS associates your business income and expenses with your personal tax return, making the SSN essential for linking your account to your tax obligations.

• LLCs or Corporations with an EIN: If your business is registered as an LLC, corporation, or another entity with an EIN, your EIN will typically be used for tax reporting. However, your SSN is still required to verify your identity as the individual opening the account, particularly for compliance purposes.

Maintaining the Corporate Veil

Providing your SSN does not affect the legal distinction between you and your business. If your business is incorporated or structured as an LLC, your liability protections remain intact as long as you operate the business according to legal requirements. The SSN requirement is purely for identity verification and compliance purposes, not for determining liability.

By providing your SSN, you help ensure that Found can open your account in line with legal and regulatory standards while protecting our customers.