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Choose your business structure

Who is this article for?
  • Only account owners can select a business structure.
  • Last updated: November 2024

    About business structures

    The information we request from you when you set up your Square account can vary depending on the business structure you run. The information below will help you understand the options to choose from when you get started with Square.

    Before you begin

    Choosing your business structure is part of setting up your Square account. Learn more about signing up for Square in our Set up your Square account.

    Please note that this guidance is general in nature and does not constitute legal, tax or any other type of professional advice.

    Types of business structures

    Individual/Sole trader

    A sole trader is an unincorporated business owned exclusively by one person. In a sole proprietorship, the business owner is the business. If you’re running a small business on your own, you can establish your business as a sole trader. Being a sole trader doesn’t prevent you from hiring other people — sole trader can have employees.

    Limited liability company

    A limited liability company (Ltd) is incorporated and limited by shares, and has a registered number with Companies House.

    A companyn can be owned by just one person or by several individuals (typically called “beneficial owners”) as well as other businesses. Learn more about the limited liability company business structure on the GOV.UK website.

    General partnership

    A general partnership is established between two or more individuals to do business. Partners share profits or losses, resources, and risks. Partners can be individuals, other businesses, or public organisations. Partnerships may also include charitable and religious organisations, private foundations and other non-profits.

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