Do I have to set up an LLC to set up Square payment processing on my brand new website?

[Sunydee]

I need to make some time to get to the department of Business regulations in my state, but thought I could just set up my order form for this weekend? any chances this can happen for my online business? 

[Summer2024 · Accepted solution]

Hi @Sunydee ! Welcome to the Square Community! 

No, you don't necessarily need an LLC to start accepting payments through Square. Here's what you need to know:

Business Structure Options

You can set up Square as a:

• Sole Proprietorship
• LLC
• Corporation
• Partnership

Minimum Requirements for Square Setup

1. Basic Information Needed:

   • Legal name
   • Date of birth
   • Social Security number (SSN)
   • Home address
   • Valid bank account
   • Valid government ID

2. Business Information:

   • Business name (can be your name for sole proprietorship)
   • Business address (can be home address)
   • Business category/type
   • Description of what you're selling

Important Considerations

1. Legal Requirements:

   • Check local business license requirements
   • Verify if you need sales tax permits
   • Research any industry-specific regulations

2. Tax Implications:

   • Keep records of all transactions
   • Plan for self-employment taxes
   • Consider consulting a tax professional

Best Practices

1. Short Term:

   • Start as sole proprietorship
   • Keep detailed records
   • Save for taxes

2. Long Term:

   • Research business structures
   • Consult legal/tax professionals
   • Register with state as needed

Remember

• You can start processing payments immediately as a sole proprietor
• Update your account later when you form an LLC
• Keep track of all sales for tax purposes
• Consider business insurance options

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.

I hope this helps! Please let me know if you have any questions.