Beginner's Guide: What's the difference between business types?
AI Summary
Choose the correct business type when registering a US TikTok Shop account: Individual (sell under your own name), Sole Proprietorship (one-person unincorporated business), Corporation (separate legal entity), or Partnership (2+ owners). This affects your required documents and cannot be changed after registration. US sellers must be 18+, live in the USA, use valid ID, and can open up to 5 shops with the same business/personal info if each has a unique email and phone number.
At a Glance:Business Types
- Individual: You sell under your own name.
- Sole Proprietorship: You run an unincorporated business by yourself.
- Corporation: A legal business entity, separate from its owners.
- Partnership: A business owned by 2 or more people.
Understanding Business Types
This guide is for new sellers in the United States who are at least 18 years old. If these criteria are not met, the registration will be unsuccessful. In this article, we will explain the 4 business types (Individual, Sole Proprietorship, Corporation, and Partnership) to help you select the right one for your TikTok Shop account.Individual and Sole Proprietorship
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.
Sole Proprietorship
A "Sole Proprietorship" is a non-registered, unincorporated business run by 1 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.\nA Partnership is a relationship between 2 or more individuals to do business or trade.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.
Partnership
A partnership is a business owned by 2 or more people, known as partners. Multiple types of partnerships exist. The most common are:- General (unincorporated)
- Limited
- Limited liability partnerships (incorporated)
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. Please note that you will not be able to change the selected business type after the account has been registered.In this article, we will explain more about document requirements for each business type.
Ready to register? Kickstart your selling journey with us and set up your shop today.
Need Help?
If you are 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 one of the following valid forms of identification:
- United States Passport/Passport Card
- United States Driver License\n• State ID
- 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 (such as your Employer Identification Number (EIN), driver’s license, or passport). Each email address and phone number can only be used for 1 shop. So while your business info can be used for up to 5 shops, each shop must be tied to a unique email and phone number.