Beginner's Guide: What's the difference between business types?

image
Welcome to TikTok Shop! We're here to help you get started.
In your first few steps of registration, you will be prompted to select a business type for your shop. You might be wondering, "What's the difference? How do I choose?"
In this article, we'll explain the different business types to help you select the right one for your TikTok Shop account.
image.png

Individual and Sole Proprietorship

image
What is an Individual Seller?An "Individual" simply refers to registering yourself as a person, to sell under your own name.
For example, your name is "Jane Smith" and you sign up as "Jane Smith" on TikTok Shop to start selling.What is a Sole Proprietorship?A "Sole Proprietorship" is a non-registered, unincorporated business run by one individual.
For example, your name is "Jane Smith" and your small business is called "JS Designs" (unincorporated). You sign up using "JS Designs" on TikTok Shop to start selling.

Corporation and Partnership

A Corporation is a business structure that is separate and distinct from its owners. A Partnership is a relationship between two or more individuals to do business or trade.
image
What is a Corporation?A corporation is a legal business entity that is incorporated by filing with the secretary of state and owned by shareholders. The corporation's assets and income are separate from its owners and investors.
For example, your business "JS Designs" has been incorporated and is owned by several shareholders. You sign up on TikTok Shop as a corporation to start selling. What is a Partnership?A partnership is a business owned by two or more people, known as partners. Multiple types of partnerships exist; the most common are general (unincorporated), limited, and limited liability partnerships (incorporated).
For example, your business "JS Designs" is owned by you and a business partner. You sign up on TikTok Shop as a partnership to start selling.

Select the Right Business Type for Your Needs

It is important to accurately identify your business type when setting up a TikTok Shop seller account. The business type you select will determine the documents you will be required to submit in the subsequent steps. In these articles, we'll explain more about document requirements for individual sellers and sole proprietorships, as well as document requirements for Corporations and Partnerships.
Ready to register? Kickstart your selling journey with us and set up your shop today!

Need Help?

If you're running into issues during login or registration, check out our Beginner’s Guide to Troubleshooting Sign-Up Issues.

Frequently Asked Questions (FAQs)

Who can register to sell on TikTok Shop?
Applicants must be at least 18 years old.
Applicants must have a valid United States Passport/Passport Card, United States Driver License, State ID, or Permanent Resident Card.
Applicants must use a phone number and email address not already used to open another shop.
Applicants must reside in the USA.
Politicians are prohibited from becoming TikTok Shop sellers.
Can I change my business type after I've registered my account?
No, you will not be able to change the selected business type after the account has been registered.
How many seller accounts can I have registered on TikTok Shop?
You can register up to 5 seller accounts using the same business or personal information (EIN, driver's license, passport, etc.).
You will need to use alternative phone numbers or email addresses if you want to create another seller account for your business.