How difficult is it to switch from a SP to LLC if you start as SP and then get an LLC a few weeks la

[bouncetheblock]

How difficult is it to switch from a SP to LLC if you start as SP and then get an LLC a few weeks later?

[Summer2024 · Accepted solution]

Hi, @bouncetheblock ! I've outlined the process below. Please consider my note above "Note: While you can start without an LLC, consult with a legal or tax professional to understand what business structure best suits your needs and local requirements." 

1. Process Overview:

   • The process is relatively straightforward but requires some specific steps
   • You don't need to create a new Square account
   • You can update your business information within your existing account

2. Required Steps:

   • First, formally establish your LLC with your state
   • Obtain your new EIN (Employer Identification Number) from the IRS for the LLC
   • Update your business information in your Square Dashboard
   • Update your bank account information if you're using a new business bank account

3. Documentation Needed:

   • Your LLC formation documents
   • New EIN documentation
   • Updated business license (if applicable)
   • New business bank account information (if changing)

4. Important Considerations:

   • Your transaction history will be preserved
   • Your customer data and settings will remain intact
   • You may need to update your tax forms and settings
   • Make sure to update any other business-related accounts or licenses

5. Timeline:

   • The actual update in Square's system is quick (usually same day)
   • The verification process might take 1-2 business days
   • The main time investment will be in forming your LLC and getting your EIN

The switch itself within Square is not difficult, but you should ensure you have all your legal documentation in order first. The most time-consuming part is typically setting up the LLC itself, not the Square account updates.

I hope this helps!