Which Venmo business profile option should I select for my single-member LLC with an EIN?

Thanks for the info. I'm in a similar situation but haven't gotten my EIN yet. If I select Partnership on Venmo but file taxes as a sole proprietor/single-member LLC, won't that cause problems? Won't Venmo be reporting my income to the IRS under a different classification than what I'm filing?

The reporting classification on payment apps and the tax filing classification are separate issues. Venmo will issue a 1099-K if you meet the threshold requirements, regardless of which business type you select on their platform. What matters is how you file with the IRS. A single-member LLC files taxes as a sole proprietor on Schedule C (unless you've elected corporation status). The IRS looks at your tax forms, not what category Venmo has you under in their system. Just be consistent with your EIN usage across all platforms.

Does the taxr service actually help with payment processor setup specifically? I'm about to register my EIN for my consulting LLC and need to set up PayPal, Venmo, and Stripe. Would this help with all of those or just the tax filing part?

I'm skeptical about using yet another service just to figure out how to fill out a form. Couldn't you just call Venmo support directly? I'd think they must deal with single-member LLCs all the time since they're so common.

Yes, the service helps with all the payment processor setups! They have specific guides for Venmo, PayPal, Stripe, and Square that show exactly which options to select for your business type. Really helped me avoid making mistakes that could have caused tax headaches later. As for calling Venmo support, I tried that first. The representatives I spoke with weren't familiar with the tax implications and just said to "pick whatever seems closest." The taxr service actually explained why certain selections were better than others based on how the reporting works.

How does this Claimyr thing actually work? Do they have some special connection to the IRS or something? I've been on hold for literally hours trying to get someone to confirm my EIN registration went through properly.

Right, like there's a magical service that can get you through to the IRS when millions of people can't get through. This sounds like a scam to me. They probably just keep you on hold themselves and charge you for the privilege.

They use a system that continually redials and navigates the IRS phone tree until they secure a spot in the queue, then they call you and connect you directly to the agent. It's not a special connection - they're just using technology to handle the frustrating part of waiting on hold. It's not magic, just smart automation. The IRS has limited staff to handle millions of calls, so most people give up after being on hold. This service just does the waiting for you so you can go about your day until an agent is actually available.

Does this also apply to Square and PayPal? I've been avoiding setting up business accounts on those platforms because I was confused about the same issue. My accountant wasn't sure what to do either.

Yes, it applies to all payment processors. Many of them have limited options that don't perfectly match IRS business classifications. For Square and PayPal, you'll face similar choices. The key is to use your EIN consistently across all platforms, but understand that their internal categorization doesn't change your tax status. Your accountant should know that the business entity type for tax purposes is determined by your IRS election and filing, not by what category a payment processor puts you in. Just be sure to keep good records so you can explain any discrepancies if ever questioned.

Did they say if this affects how they report to the IRS? I'm concerned about getting a 1099-K that lists my business as a partnership when I'm filing taxes as a sole proprietor (single-member LLC).

The 1099-K reporting shouldn't be affected by what category you select in Venmo's system. The 1099-K will show your EIN and total payment volume, but it doesn't actually specify your business entity type on the form itself. When you file your taxes, you'll report the income from the 1099-K on Schedule C as a sole proprietor (which is how single-member LLCs are treated by default). The IRS matches based on your EIN, not on whatever internal classification Venmo uses. As long as you're consistent with using your EIN and filing correctly, there shouldn't be any issues.

This is really helpful to hear from someone who actually went through the whole process! I'm in the exact same boat - just got my EIN last week and was stressing about the Venmo setup. Your point about keeping notes is smart too. Did you have to deal with any other payment platforms that had similar confusing options, or was Venmo the main issue?

PayPal was actually even more confusing! They have options like "Individual," "Business," "Nonprofit," etc., but when you have an EIN they require you to select "Business" and then choose from subcategories that also don't perfectly match single-member LLCs. I ended up selecting "Corporation" there because it seemed like the closest fit when using an EIN. Square was similar - limited options that don't align perfectly with IRS classifications. The pattern I noticed is that most payment processors' business type selections are for their internal processing and fraud prevention, not for tax reporting purposes. As long as you use your EIN consistently and file taxes correctly, the specific category you pick on each platform doesn't really matter. Just make sure to keep good records of your income from all sources so you can report everything accurately on Schedule C come tax time!

Thank you for the professional perspective! This is exactly what I needed to hear from someone who deals with this regularly. I've been overthinking this whole situation - got my EIN two weeks ago and have been paralyzed about setting up any payment processors because I was worried about making the "wrong" choice. Your point about documenting the reasoning is really smart. I'll make sure to keep a note in my business files explaining why I selected Partnership on Venmo despite being a single-member LLC. It's reassuring to know that the IRS focuses on actual income reporting rather than these platform categorizations. Quick question: when you mention being consistent with EIN usage across platforms, do you mean always using the EIN instead of SSN, or something else? I want to make sure I'm setting everything up correctly from the start.