Choose your business structure
Last updated: July 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.
Types of business structures
A sole proprietorship 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 proprietorship. Being a sole proprietor doesn’t prevent you from hiring other people — sole proprietorships can have employees.
In order to pay employees as a sole proprietor, you’ll need an Employer Identification Number (EIN). Learn how to obtain an EIN from the U.S. Small Business Administration website.
A limited liability company (LLC) is a private business structure that combines features of a corporation and a partnership. A Single-Member LLC is an LLC that is owned by just one person (typically called “member”). Learn more about the limited liability company business structure on the IRS website.
A limited liability company (LLC) is a private business structure that combines features of a corporation and a partnership. A Multi-Member LLC is an LLC that is owned by several individuals (typically called “members”). Learn more about the limited liability company business structure on the IRS website.
A corporation can be S corp, C corp, Inc., private company or public company. A private company (or privately held company) is a business with shares that are not traded on the stock market or issued through an initial public offering (IPO) or stock launch. The company stocks are owned and traded between shareholders privately. Public companies can be listed or unlisted. Listed companies are registered on the stock exchange and their shares are traded openly. Unlisted public companies are firms with shares that aren’t listed on a stock exchange.
A 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 organizations. Generally, there are two types of partnerships: general partnerships and limited partnerships.
Square supports charitable organizations that have been granted tax-exempt status by the IRS under under the Internal Revenue Code section 501(c)(3). Charitable organizations may include:
- Charitable and religious organizations
- Private foundations
- Other nonprofits
Find out more about charities and nonprofit organizations, and learn how to apply for tax-exempt status on the IRS website. Check your state government website to learn about state exemptions.