Mercury supports most U.S.-registered business structures, including LLCs, corporations, partnerships, and non-profits. This article covers what each structure is generally used for, what Mercury needs from you at application, and which structures we can't currently support.
What every structure needs, regardless of type
No matter how your business is set up, Mercury requires:
- A state-filed formation document confirming your business is registered with a Secretary of State or similar authority (Articles of Organization, Articles of Incorporation, or a Certificate of Formation)
- An IRS-issued EIN document
- Identification for anyone with 25% or more ownership, and for at least one person with operating control of the business
See Eligibility and requirements for opening a Mercury account for the full list.
Supported structures
LLC (Limited Liability Company)
An LLC is typically used by founders who want personal liability protection without the formality of a corporation — you file Articles of Organization with your state, and profits generally pass through to your personal tax return. It's the most common structure among Mercury customers, from single-member freelance businesses to multi-member startups.
Mercury supports both single-member and multi-member LLCs. Since an LLC is a distinct legal entity, we'll ask for your Articles of Organization (or state equivalent) and identification for any member who owns 25% or more of the company.
C Corporation
A C Corp is the standard structure for venture-backed and scaling companies — it issues stock, supports multiple classes of shares, and is taxed as its own entity separate from its owners. Most investors require this structure before writing a check.
Because a C Corp is registered by filing Articles of Incorporation, we'll ask for that document along with identification for beneficial owners and your operating leadership.
S Corporation
An S Corp isn't a separate legal entity — it's a tax election made by an LLC or corporation to pass income, losses, and credits directly to shareholders and avoid corporate-level tax. Businesses often elect S Corp status once they're profitable and want to reduce self-employment tax.
Since an S Corp is built on top of an underlying LLC or corporation, Mercury asks for that entity's formation document, not a separate S Corp filing.
Partnerships and LLPs
General partnerships, limited partnerships, and limited liability partnerships (LLPs) are used when two or more people share ownership and want to define how profits, losses, and management responsibilities are split. Professional service firms — law firms, accounting firms, consultancies — often use LLPs specifically because they limit each partner's liability for the others' actions.
To open an account, your partnership needs to be registered with the state (for example, through a Certificate of Limited Partnership), and we'll need ownership and ID information for each partner who meets the 25% threshold.
Note: partnerships and LLPs currently aren't eligible for a Mercury Treasury account, though they can hold a standard Mercury Business account.
Non-profit corporations
Non-profit corporations are used by organizations pursuing a charitable, educational, religious, or other mission-driven purpose rather than distributing profit to owners. They're formed the same way a for-profit corporation is — by filing Articles of Incorporation — which is why Mercury can support them even though ownership works differently.
Since non-profits don't have traditional owners, we'll ask for identification for board members or officers with significant operating control instead of beneficial owners.
Note: non-profits currently aren't eligible for a Mercury Treasury account, though they can hold a standard Mercury Business account.
Structures we can't currently support
- Sole proprietorships — because they aren't registered with a state, there's no formation document to verify, which is required for every Mercury account
- Trusts
Mercury also can't open accounts for money services businesses (MSBs) or businesses operating in adult entertainment, cannabis, or internet gambling, regardless of company structure. See Eligibility and requirements for opening a Mercury account for the complete list.
Choosing a structure
If you haven't yet formed your business, choosing the right structure depends on factors like liability protection, how you want to be taxed, and whether you plan to raise investment. This decision is best made with an attorney or accountant who can advise on your specific situation.
Investment advisory products and services offered by Mercury Advisory, LLC ("MA"), an SEC-registered investment adviser. MA is a wholly-owned subsidiary of Mercury Technologies, Inc.
Mercury Treasury accounts are not FDIC insured, are not bank deposits, and are not guaranteed by Choice Financial Group or Column N.A., and may lose value.