How to Set Up Stripe Tax for Multi-Entity LLC Ownership

Stripe Tax configuration can feel complex when your business follows a multi-entity ownership structure. If your operating LLC is owned by other holding companies rather than individual people, follow this guide to ensure your beneficial ownership information is filed correctly for tax automation.

1. Defining Beneficial Owners

When Stripe requests “Company Owner” or “Beneficial Owner” details, they are looking for the individuals who ultimately own or control the business. Stripe requires visibility through the ownership chain until it reaches a physical person.

How to list your ownership:

• List the Holding LLCs first: Enter each holding company as an owner with its respective ownership percentage (e.g., three LLCs at 33.33% each).

• Identify the individuals: For each holding LLC, you must provide details for the individual(s) who own or control that specific entity. Typically, this includes anyone with 25% or more ownership or significant management control.

• Keep documents ready: Be prepared to provide an organizational chart or operating agreements if Stripe requests documentation to verify the ownership chain.

2. ID Requirements (Driver’s License)

A common point of confusion is when the form asks for a driver's license number for an LLC. Since an LLC is a legal entity and does not have a government-issued ID, you must provide personal identification for the individuals behind the companies.

• Use Individual IDs: Enter the driver’s license or passport details for the individual beneficial owners or authorized representatives you listed in the previous step.

• Entity vs. Person: Even if the "owner" is technically a holding company, the ID field must always be populated with the details of the person representing that entity.

3. Documentation Checklist

To ensure a smooth setup, we recommend having the following documents on hand:

1. Operating Agreements for the operating LLC and all holding companies.

2. Organizational Chart showing the percentage of ownership from the top level down to individuals.

3. SSN/EIN details for all entities and individuals involved.

Still need help?

If Stripe’s interface does not seem to accommodate your specific tiered structure, or if you encounter a validation error, we recommend reaching out to Stripe Support directly. They are equipped to handle complex entity configurations and can provide a manual review if necessary.

For questions regarding how these settings impact your Kintsugi tax automation, feel free to reach out to our team at success@trykintsugi.com.