An Employer Identification Number (EIN) is a nine-digit number that identifies your business in the US for tax purposes. It’s issued by the Internal Revenue Service (IRS), being essential to file your tax returns, open a business bank account and apply for corporations licenses.
A Social Security Number (SSN) is a nine-digit number issued to US citizens, permanent residents, and eligible foreign nationals. It’s used for taxpayer identification, income reporting, record-keeping purposes, and determining Social Security benefits.
A neobank is a fintech company focused on offering internet-only banking services via mobile app or website. Neobanks don’t have a physical branch and their services are mostly enabled through partnerships with traditional banks. They’re also known for providing extremely low fees compared to brick and mortar financial institutions.
A Limited Liability Company (LLC) is a type of corporate legal entity in the United States that offers personal liability protection for a corporation. In practice, it means that it shields personal belongings from business debts and lawsuits.
KYC stands for Know Your Customer, which is a mandatory process of verifying a client’s identity in person when opening a bank account or from time to time. KYC protects financial institutions against fraud, corruption, money laundering, and terrorist financing.
A Sole Proprietorship is a type of unincorporated entity in the United States that is owned by a sole individual. It’s considered the simplest legal form of a business entity, in which one person owns the business and is also responsible for its debts.
A C Corporation (C-corp) is a type of business legal entity in the United States, in which its owners are taxed separately from the company, protecting their personal assets from creditors. This option attracts investors as they can passively hold shares without worrying about tax consequences.
S Corporation stands for Subchapter S Corporation, which is a type of business legal entity in the United States. Those companies have a special tax status granted by the International Revenue Service (IRS) that allows passing an entity's income, credits, and deductions to the shareholders.
A Cooperative is a people-centered company that has at least five members, who have equal voting rights to run the business. As its name suggests, a Cooperative involves people coming together to solve a common need.
Fintech is a term used to refer to any business that uses technology to bring financial solutions, such as online banking, mobile payments, cryptocurrency. Fintech is a broad term that encompasses many technologies focused on revolutionizing the way consumers and entities deal with their finances.