Business Type

Definition

Business type can refer to a company’s legal structure, its industry or the way it operates. Payment applications may ask for these separately: a business can be an LLC, sell restaurant meals and accept payments online and in person.

Legal structure and payment activity are different

Sole proprietorships, partnerships, LLCs and corporations are examples of legal structures. Industry and sales channel describe what the business sells and how it takes payment. A merchant category code is a separate card-payment classification.

Give a payment provider an accurate description of the business, ownership and payment flows. Swipesum can help with payment-provider fit and implementation. Choosing a legal or tax structure calls for advice specific to the business from qualified legal and tax professionals.

Related payment guidance

Continue with understand merchant-account setup, or return to the payments glossary.

Reference: U.S. Small Business Administration.