Choosing Your Business Type and Structure During Onboarding
During onboarding, you’ll be asked to provide details about your Business Type and Business Structure. Selecting the correct information is important, as it affects the documentation and tax details we require.
If You Filed Paperwork to Register Your Business
If you filed documents with a government agency to officially register your business, your Business Type is most likely Company. Your Business Structure will depend on the specific documents you filed (for example, LLC, Corporation, etc.).
If you select Individual, you’ll need to provide your SSN.
If you select Company or Non-profit, you’ll need to provide your EIN only.
If you’re unsure about your Business Structure, refer to the registration documents you submitted when forming your business, or consult your attorney or tax professional.
If you’ve incorporated your legal entity and are a registered nonprofit or charity, your Business Type is likely Non-profit organization.
If You Did Not File Business Registration Paperwork
If you have not filed any paperwork to register as a formal business entity, your Business Type is likely Individual, and you won’t need to select a Business Structure.
Not the Business Owner?
If you’re completing onboarding on behalf of a business, please confirm the correct Business Type and Structure with the business owner before submitting the information.
FAQ
Q: What’s the difference between a Sole Proprietorship and a Single-Member LLC?
A: A Sole Proprietorship means you and your business are legally the same, so you’re personally responsible for any business liabilities. A Single-Member LLC creates a separate legal entity, which helps protect your personal assets from business-related risks. By default, both are taxed the same way unless you elect to have the LLC taxed as a corporation.
🔎 If you chose Individual, you will need to provide your SSN number.
If you chose Company or Non-profit - you will need to add your EIN number only.