Introduction

When you sign up for Partner Hub, you are asked to select a business classification. Though we do not make individual recommendations, we provide general information below to give your team some basic context. Ultimately, your selection is up to you, your accountant, and your legal team.

You can update these settings in Partner Hub; for instructions on how to do so, see the Update Your Business Classification section below.

Individual

Select Individual if your business is not incorporated. This option is typically for independent contractors, consultants, or freelancers. Registering as an individual business requires that you provide a valid US Social Security number for tax purposes.

Sole Proprietorship

Select Sole Proprietorship if your business is not incorporated, and you report your business income and expenses on a Form 1040 Schedule C. This option is typically for independent contractors, consultants, or freelancers. It is the easiest form of business to set up and dissolve.

Partnership

Select Partnership if your business is incorporated as a partnership, and you report your business income and expenses on Form 1065. Partnerships are incorporated businesses. Like corporations, partnerships are separate entities from the shareholders. Unlike corporations, partnerships must have at least one general partner who assumes unlimited liability for the business. Partnerships must have at least two shareholders. Partnerships distribute all profits and losses to their shareholders, regardless of any profits retained by the company for cash flow purposes.

Corporation

Select Corporation if your business is incorporated, and you report your business income and expenses on Form 1120 (C-corporation) or 1120S (S-corporation). Corporations are incorporated businesses. Every form of business besides the sole proprietor is considered a separate entity. This often provides shareholders with a measure of legal and financial protection. The shareholders of corporations have limited liability protection. Corporations have full discretion over the amount of profits they can distribute or retain. Corporations are presumed to be for-profit entities, and as such, they can carry losses for an unlimited number of years. Corporations must have at least one shareholder.

Foreign: Creators Outside the US

If you receive a commission in a country other than the United States, you must select Foreign.

Limited Liability Company (LLC)

Select LLC if your business is incorporated as a Limited Liability Company (LLC). The LLC is a state designation. At the federal level, an LLC is taxed as a partnership. If an LLC chooses, it can be taxed as a corporation at the federal level.

Limited Liability Partnership (LLP)

Select LLP if your business is a Limited Liability Partnership (LLP). A Limited Liability Partnership is a type of partnership recognized in most US states that protects a partner from personal liability for negligent acts committed by other partners or by employees not under their direct control. Many states restrict this type of partnership to professionals, such as lawyers, accountants, architects, and healthcare providers.

Nonprofit

Select Nonprofit if your business is a nonprofit or not-for-profit organization, and you report income and expenses on Form 990. Nonprofits are corporations formed for charitable, civic, or artistic purposes. Nonprofits are generally exempt from federal and state taxation on their income, and so they are often called "exempt organizations." Nonprofits are responsible for reporting their activities, income, and assets to ensure compliance with federal and state laws governing charities.

Other

Select Other if your organization does not fall into any business type choices.

Update Your Business Classification

Follow these steps to update your business classification:

1. Go to Account in the navigation header and select Account Details. This takes you to the General tab of the Settings page.
2. Click Edit details in the Account information section.
3. Select a new business classification from the drop-down menu and click Verify and save.
4. A pop-up appears prompting you to enter the verification code that was sent to the email address associated with your user account.
5. Access the email, copy and paste the code in the pop-up, and click Submit code.