Venmo, a mobile payment service owned by PayPal, has become a popular platform for sending and receiving money quickly. For small business owners, freelancers, and entrepreneurs, Venmo offers a business account option that makes it easy to accept payments from customers. Here’s how to open a Venmo business account step-by-step.
Step 1: Download the Venmo App
Venmo is available on both iOS and Android devices. Download the app from the App Store or Google Play Store and install it on your device.
Step 2: Sign Up or Log In
If you don’t already have a Venmo account, you’ll need to create one using your phone number, email address, and a strong password. If you already have a personal Venmo account, you can add a business profile to it.
Step 3: Create a Business Profile
To set up a business profile:
Open the Venmo app and go to your profile by tapping the menu (☰) or profile icon.
Tap “Business Profile” and select “Get Started”.
Choose whether you’re a sole proprietor or a registered business.
Step 4: Enter Business Details
Venmo will ask for information such as:
Business name
Description of your business
Business category (e.g., food, retail, consulting)
Business address (optional)
Profile photo or logo
Phone number and email address for customer inquiries
You may also need to verify your identity by providing:
Legal name
Social Security Number (SSN) or Employer Identification Number (EIN)
Date of birth
Home address
Step 5: Link a Bank Account
To receive payments, link a bank account or debit card to your business profile. This allows you to transfer funds from Venmo to your business bank account.
Step 6: Start Accepting Payments
Once your business profile is set up, you’ll receive a unique QR code and @username you can share with customers. Customers can scan the QR code or search for your username to send payments directly.
Fees and Limits
Venmo charges a fee of 1.9% + $0.10 per business transaction. Be sure to review Venmo’s transaction limits and fee structure to ensure it fits your business model.
Step 7: Manage Your Business Profile
From your Venmo app, you can:
Track payments and sales history
Issue refunds
Customize your business profile
Promote your profile with Venmo’s tools
Compliance and Taxes
Keep in mind that Venmo reports business transactions to the IRS. You may receive a 1099-K form if you process more than $600 in a calendar year. It’s important to keep accurate records and consult a tax advisor.
Conclusion
Opening a Venmo business account is a straightforward process that can help small businesses and independent sellers get paid easily. With its user-friendly interface and low-cost transaction fees, Venmo is a great tool for streamlining payments and growing your business.
For the latest updates and requirements, always refer to Venmo’s official website or customer support.
