Stripe 101: How to Open Your Account Without Getting Flagged

Dewayne Williams
5 hours ago
4 min read

There’s a massive amount of confusion when it comes to opening a Stripe account. Even worse, some business owners are seeing their accounts flagged or shut down. Let’s clear this up once and for all.

Too Long; Didn’t Read.

Stripe is for real businesses. You must be selling a real product or service.
The price of your product/service must match what you invoice and charge through Stripe.
Do not use keywords like “Real Estate,” “Investment,” or “Trust.” These industries are on Stripe’s prohibited/restricted list and get flagged.
Every company in the Legacy Builder needs its own EIN, bank account, Stripe account, business email, and website/landing page.
Stripe is not for individuals looking for quick money—it’s for business owners running C-Corps.
Why C-Corps? Because they are treated as separate legal persons. That means no personal credit check when building funding strategies with Stripe.

What Stripe Really Is

Stripe is a payment processor for businesses.

It lets businesses accept debit, credit, ACH, and other payments online. But here’s the key:

👉 To open a Stripe account, you must be running a business that sells products or services.

If you are not a business owner, Stripe is not for you.

What You Need to Open a Stripe Account

Here’s the bare minimum you must have in place:

Business info: Your legal business name, EIN, business bank account, phone, and physical address. These must line up with your registration records.
Business email (domain-based): No Gmail, Yahoo, or AOL. Your email should match your company website (example: info@yourcompany.com).
Website or landing page: Must clearly show the products or services you sell, with listed prices that match your invoices and Stripe transactions.
KYC verification (Know Your Customer): Stripe is required by law to verify that you and your business are real. This means you’ll need to provide:
- Personal details: Full legal name, date of birth, home address, Social Security Number (last 4 digits in the U.S.), and sometimes a government-issued ID.
- Business details: Legal business name, EIN, address, phone, email, and a working website that matches your service.
- Bank account details: Business bank account in the same name as your company, plus routing and account numbers for payouts. Stripe may request a voided check or bank letter.If the information doesn’t line up, Stripe will flag your account—so consistency is everything.

⚠️ Important: Once your Stripe account is open, you cannot change its country. If you want to use Stripe in another country, you must create a new account in that country.

Why People Get Flagged

There are two main reasons:

Wrong Business Type
- Stripe prohibits certain industries and restricts others.
- Words like “Real Estate,” “Investment,” and “Trust” trigger reviews because those industries are on Stripe’s prohibited/restricted list.
- Even if you’re legit, the wording alone can cause issues.
Solution: When applying, list your company under “Business Consulting Services.” Consulting is Stripe-approved and keeps you compliant.
Website Mismatch
- If your site says one thing but your invoices say another, Stripe sees that as a red flag.
- Example: If your invoice says “Consulting Services – $500,” your site must also show “Consulting Services – $500.”

Prohibited & Restricted Businesses

Here are just a few industries Stripe does not support:

Adult content or services
Gambling or casinos
Marijuana/cannabis
Lending or debt collection
Shell corporations
Content creation platforms (like Stan.store, OnlyFans-style models, etc.)
Investment services
Real estate-related offerings

👉 That’s why using words like “real estate,” “investment,” or “trust” will often get you flagged.

For the full list, check Stripe’s Restricted Business List.

Why I Teach C-Corps (Not LLCs or S-Corps)

This is where most people get it wrong.

If you have a pass-through business (LLC, partnership, or S-Corp), Stripe has the right to check your personal credit and even hold you personally liable in case of default.
That’s because your business income flows directly to your personal tax return.

But a C-Corp is different.

A C-Corp is considered a separate U.S. legal person.
That separation means your personal credit does not get pulled when running funding strategies with Stripe.
This is the core reason I teach C-Corps for business funding.

⚠️ Note: Applying for Stripe Capital may sometimes involve a credit check depending on your business and history—but structuring as a C-Corp removes you from the automatic personal liability that pass-through businesses create.

The Legacy Builder Method

Every company in the Legacy Builder structure has:

Its own EIN
Its own bank account
Its own Stripe account
Its own business email (domain)
Its own website or landing page

And each company is positioned as a consulting business for Stripe purposes.

From there, we use B2B transactions to show activity across all entities.

Example:

Operating Company deposits $1,000.
Parent Company invoices the Operating Company.
Property Management Company invoices the Parent Company.
Holding Company invoices the Property Management Company.

Now, each entity shows processed revenue. Do this for 3 months, and you’re positioned for Stripe funding eligibility—without touching your personal credit.

Bottom Line

Stripe is for businesses only.
You must sell real products or services, and your site must match your invoices.
Avoid restricted keywords like real estate, investment, or trust. Position your businesses as consulting companies.
Pass-through entities (LLCs, partnerships, S-Corps) will tie Stripe to your personal credit.
A C-Corp is the only structure that allows you to build funding strategies without your personal credit being checked.