How to Choose a Business Type

One of the first steps of creating your Stripe account is to indicate which type of business your sports organizations fall into. Stripe has three options you can select from: Nonprofit Organization, Company or Individual. Continue reading to determine which business type you should select.

NonProfit Organization

A nonprofit organization will have registered with the IRS and have received a nine-digit Employer Identification Number. The legal name of your business must match the one listed on your IRS-issued documents, including capitalization and punctuation. Only select this option if you are a registered nonprofit or charity.

Individual

If your sports organization has not completed business registration with the IRS, you would select Individual as your business type. Instead of providing a Tax ID related to the organization, you are required to provide your own full legal name and SSN/ITIN. This aligns with Stripe's "Know Your Customer" obligations.

Company

An organization that falls under the Company category will have registered with the IRS as a sole proprietorship, a single-member LLC, a multi-member LLC or a private partnership or corporation. The legal name of your business must match the one listed on your IRS-issued documents, including capitalization and punctuation. Only select this option if you have a nine-digit Employer Identification Number and are registered with the IRS.

How to Change Your Type of Business

If you previously selected a business type that's no longer applicable, you can easily make a change at this link > dashboard.stripe.com/settings/taxation. From there, you can select the appropriate business type and provide any corresponding documents or information.