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What do I describe my LLC as when making an account?

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andean-coffee
Contributor
Posted on

When I try to make a business account on Paypal I have to "Describe my business". There are 5 available options: Individual/Sole Proprietor, Partnership, Corporation, Non-Profit Organization, and Government Entity. What do I choose if I am an LLC?

1 REPLY 1

What do I describe my LLC as when making an account?

Options
sharpiemarker
Esteemed Advisor

@andean-coffee 

You choose the one that applies. If you’re a sole proprietor, then choose that. If you are a corp, choose that and so on. 

 

“A Limited Liability Company (LLC) is an entity created by state statute. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owner’s tax return (a disregarded entity).  A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and elects to be treated as a corporation. For income tax purposes, an LLC with only one member is treated as an entity disregarded as separate from its owner, unless it files Form 8832 and elects to be treated as a corporation. However, for purposes of employment tax and certain excise taxes, an LLC with only one member is still considered a separate entity.”


Kudos & Solved are greatly appreciated. 🙂

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