So, you're ready to add or invite a vendor and you are left wondering "should I mark them as a business or as an individual?"
When should I select "business"?
If you know your vendor represents a business, then we recommend selecting this option. By doing so you will make sure that the following information is correct:
Bank statement: Selecting "business" will ensure that your vendor's business name (e.g. Dunder Mifflin) will show up on the bank statement if you're sending an ACH payment.
Tax information (EIN): If you request your vendor (as a business) to provide their tax information for end of year filing or a W-9, the Routable platform will prompt them to provide their business Employer Identification Number (EIN).
When should I select "individual"?
If you know your vendor is a contractor or does not represent a business, then we recommend selecting this option. By doing so you will make sure that the following information is correct:
Bank statement: Selecting "individual" will ensure that your vendor's personal name - first and last (e.g. Angela Roberts) will show up on the bank statement if you're sending an ACH payment.
Tax information (SSN): If you request your vendor, as an individual, to provide their tax information for end of year filing and want to send them a Form 1099-MISC, then the Routable platform will prompt them to provide their personal Social Security Number (SSN).
What if I sent a vendor invite, and selected the wrong type?
No worries! Once they receive an invite to confirm their contact details and add their preferred payment method, they will also have the choice to select the correct entity type.
