You started your business as a solo venture, and using your personal name for your Stripe account was the simplest way to begin accepting payments. But now, your business is growing, and you’ve taken the important step of forming a Limited Liability Company (LLC). This naturally leads to the question: can you simply update your existing Stripe account to reflect this new business structure?
The short answer is yes, you can change your Stripe account from an individual to an LLC. However, it’s not just a simple toggle in your settings. The process involves providing Stripe with new documentation to verify your LLC’s legal existence and your authority to represent it.
Why Updating Your Account Matters
Moving from an individual to an LLC account isn’t just about a name change. It’s a crucial step in separating your personal and business finances. By having your LLC on file, payments are processed under your company’s legal name, which helps maintain that important liability protection. It also makes your business appear more professional and established to your customers.
The Process for Switching to an LLC
Stripe requires you to submit a request to change your account type. You’ll typically find this option in your account settings under a section like ‘Business settings’ or ‘Account details.’ Be prepared to provide specific documents, including your LLC’s Employer Identification Number (EIN) from the IRS and a formation document from your state, such as the Articles of Organization. Stripe will use this to verify that your LLC is a legally recognized entity.
A Common Alternative Path
In some cases, depending on your specific situation and Stripe’s current policies, you might be advised to open a brand new Stripe account registered directly to your LLC from the start. This can sometimes be a cleaner process, especially if you want a complete separation from your old individual account. If you go this route, you would then close your original individual account after ensuring all pending balances have been transferred.
Getting Ready for the Change
Before you begin the process, gather all your LLC paperwork. Having your EIN letter and state registration documents on hand will make the update much smoother. It’s also a good idea to plan the timing of this switch. Consider doing it during a slower business period to minimize any potential disruption to your payment flow.
Updating your Stripe account to your LLC is a straightforward but important administrative task. By taking this step, you align your payment processing with your business’s legal structure, ensuring you’re building your venture on a solid and professional foundation.
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