Does Square verify who owns my LLC?

Square does require identity verification for the account holder. In my experience they asked for my driver's license and the EIN letter. The LLC ownership wasn't a separate document request, but the person opening the account had to be verified.

They use a third-party KYC service. It's not just a registration check.

This is the part that matters for privacy. Square is a financial institution under the regs, so they have to collect beneficial ownership info for the LLC. That means they will ask who owns 25% or more. If you're the sole member, that's you. There's no way around it if you want the account in the LLC's name with you as the the operator.

Right, I should clarify. They didn't ask for a separate ownership chart, but the signer had to be verified and I think there was a question about ownership percentage during setup.

Has anyone tried using a registered agent's address and a nominee manager? I'm curious whether that trips their verification.

A nominee won't help with Square. The KYC check is on the person opening the account, and if that person is a nominee they still have to provide their real ID. Square can see the name on the ID doesn't match the public manager record and that raises questiosn. Plus the beneficial ownership rule applies regardless of who the manager is.

Also worth noting that Square can freeze funds if verification fails partway through. I've seen threads where people lost access for weeks because the ownership info didn't ma tch state records exactly. Not a privacy issue so much as an operational one, but it matters.

So what's the actual workaround? Seems like every processor does this now.

There isn't one that keeps your name off the processor's records. The privacy comes from keeping your name off the state's public records, nnot from hiding from the payment processor. Different threat models.

That distinction is helpful. I was conflating the two.

I use Square for a small LLC, and they asked for my ID and a utility bill. No ownership questionnaire beyond a checkbox. Maybe it varies by state or business type.

It does vary. If the LLC was formed recently or the address doesn't match, they dig dig deeper. Also if you're in a higher-risk category like some online services, they ask for more.

Appreciate the responses. Sounds like the short answer is yes, they verify the person and the ownership, and there's no clean way to avoid it.

One more thing. If you're worried about your home address, use a commercial mail receiving agency for the business address, not your registered agent. Square will want a physical address and a CMRA is fine for that as long as it's not a PO box.