Quick answer
A Cash App business account is a separate account for taking payments for goods and services, and it is free to create, with no extra hardware needed. You create it from your personal account in the app, and Cash App then deducts 2.6% + $0.15 from each payment a customer sends from their Cash App account, or 3% on Tap to Pay card payments. On a $50 payment from a Cash App customer, you keep the sale minus $1.45.
Nation, an AI store builder, publishes this page. It is pre-launch, with a waitlist on withnation.ai, so it is not in the fee comparison. See where Nation fits.
What a Cash App business account is
A Cash App business account is a Cash App account used only for selling. Cash App's help center says to use it for only business transactions, meaning payments for the sale of goods or services. Customers find and pay you through your Cash App QR code, $cashtag, or the email or phone number on your account.
The trade-off is a fee on every payment you receive. Personal payments belong in a personal account, because you need a personal Cash App account to accept payments from friends and family. Cash App says that keeping personal payments out of the business account means you do not pay business fees on them.
Who can open a Cash App business account
Cash App's terms say the account is open to any seller of goods or services. The help center narrows that to the business types it supports today: sole proprietors, single-member LLCs and nonprofit corporations.
Other structures cannot use it yet. Cash App lists international businesses, partnerships, multi-member LLCs and large corporations as unsupported, and says that for those businesses Square Point of Sale may be a better fit.
You also need a Prepaid Account or Debit Flex Account to open or keep a business account. Accounts for minors are excluded: Sponsored Accounts are not eligible to switch to a business account, and a Sponsored Account is an account for a minor, created through the Cash App Families program. Before approval, you may have to give information about you or your business so Cash App can verify and approve the account.
Cash App can make the decision for you. Its terms say Cash App may require you to switch if it determines you are using your account to sell goods and services.
How to switch to a Cash App business account
These steps follow Cash App's help center. You start from a personal account, so set that up first if you do not have one.
Start from your personal account
On your personal account, open the profile icon in the top-right corner of the home screen. If your account is still a Restricted Account, verify your identity first: after Cash App verifies your identity, a Restricted Account may be converted to a Prepaid Account or Debit Flex Account.
Choose Create a business account
On the profile page, select Create a business account, at the bottom of the page.
Verify your business
Next, follow the prompts to verify your business. During setup, you identify what kind of business you operate, and Cash App verifies your identity and your business. Also, certain businesses can give their Employer Identification Number (EIN) for tax purposes.
Pick a $cashtag
You can choose a new $cashtag for the business account, or transfer the $cashtag from your personal account.
Check for the badge
When setup is done, a green business badge appears next to your profile information. From then on, take payments for sales in the business account and keep personal payments in the personal one.
Cash App business fees
The fees come out of the payments you receive, and which fee applies depends on how the customer pays.
You do not pay the fee separately: the fee is already deducted when the payment reaches your balance, and the fee on each payment is shown in the Activity tab. Moving money out of your balance is a separate step, and its cost depends on how fast you want the money.
Tap to Pay lets you take cards from people who do not use Cash App: customers do not need a Cash App account to pay this way, but you have to be with the customer in person.
What Cash App keeps from one $50 payment
The same $50 payment received through Cash App for Business and two other common ways to take payments, using each company's own published rates. The fee comes out of what you receive.
- Cash App for Business baseline $1.45 free to open Processing 2.6% + $0.15 $1.45
- Square, card in person $1.45 no monthly fee on Square Free In person 2.6% + 15¢ $1.45
- PayPal goods and services $1.50 goods and services rate Goods and services 2.99% $1.50
Assumes one $50 domestic payment in US dollars, no refund or dispute, no currency conversion and a standard transfer to your bank. PayPal uses its goods and services rate.
Cash App business account limits
Cash App's limits page covers Cash App accounts in general and does not list separate figures for business accounts. The main factor is identity verification: you can get higher limits by verifying your identity.
For a seller, the receive limit matters most. Cash App does not publish one figure for verified accounts: the limit is set for each account and shown in the Limits tab of account settings. Check it there before a busy weekend or a large order.
What changes when you switch
Switching changes how Cash App treats the account, so check these points in Cash App's terms first.
- Features: you may lose access to some Cash App features and may have to sell or move assets held in the account.
- Borrowing: business accounts are not eligible for Cash App Lending products.
- Group collections: business accounts cannot organize a Pool.
- Disputed payments: Cash App may void a transaction it believes will be charged back.
- Security: a business account may be liable for all unauthorized transactions, regardless of when you report them.
Earn in P2P: selling from a personal account
Cash App's terms describe a second way to take payments for goods and services. With Earn in P2P, eligible sole proprietors can receive payments for goods and services in a personal account without opening a business account. It is an optional feature that you turn on through an enrollment process.
It is limited to people selling in their own name. Under the terms, registered entities, including single-member LLCs, must use a business account. To enroll you need a Prepaid Account or Debit Flex Account with your identity verified, you must have given your full nine-digit Social Security Number, and you must be at least 18 years of age.
Fees differ from a business account. The terms say Cash App does not currently charge a fee to receive Earn in P2P payments, and may add fees with reasonable advance notice.
With Earn in P2P, you mark each payment you receive as Earnings or Personal. If a valid Social Security Number is not on file when a reportable payment arrives, Cash App withholds 24% of that payment as backup withholding. The terms also say the balance cannot be used as a business operating account, and Cash App may require you to move to a business account for any reason.
Form 1099-K and taxes on Cash App business payments
Cash App sends a Form 1099-K to business accounts that receive more than $20,000 in gross payments and more than 200 transactions in 2025. The IRS sets the federal rule for payment apps: a form is required when payments for goods or services total over $20,000 in more than 200 transactions, although a payment app may send a Form 1099-K for lower amounts or fewer transactions.
Some states set lower amounts, and Cash App's help center lists them. It also says totals are combined across Cash App Business and Square Point of Sale accounts that share the same TIN.
Cash App's help center says a personal Cash App account does not receive a Form 1099-K, but its terms say Earn in P2P earnings are reported to the IRS once they pass the reporting thresholds. Whatever form you get, the IRS says you must report all income from selling goods or services, whatever amount is reported. Personal payments are different: the IRS says gifts and repayments of personal expenses from friends and family should not be reported on a Form 1099-K.
Tax rules vary by state and city, and this page is general information, not tax or legal advice. Ask a tax professional about your own situation.
Where Nation fits
Nation
Category: an AI store builder
Nation says one description of what you make builds the store, then agents handle orders, customers and delivery and run ads, content and social posts, with you approving the work. Because pricing is not announced yet, it is not in the fee comparison.
Limits today
- Status: pre-launch, with a waitlist on withnation.ai.
- Pricing and fees: not announced yet.
- Shopper marketplace: no shopper marketplace has been announced.
- Track record: no independent reviews or public stores yet.
Nation publishes this page. Nation is not in the fee comparison until signup is public and pricing is published.
Describe what you makeQuestions about Cash App for business
How much are Cash App business fees?
Cash App business fees are 2.6% + $0.15 on each payment a customer sends from their Cash App account, and 3% on Tap to Pay card payments. A standard transfer to your bank is free, and usually arrives within 1 to 3 business days, and an instant transfer costs 0.5% to 2.5% (minimum $0.25 to $1, maximum $75).
Is a Cash App business account free?
A Cash App business account is free to create, with no extra hardware needed. You pay per payment instead: 2.6% + $0.15 on payments from a Cash App account and 3% on Tap to Pay, which Cash App deducts before the money reaches your balance.
Who can open a Cash App business account?
A Cash App business account is open to any seller of goods or services, according to Cash App's terms of service. The help center lists the supported types as sole proprietors, single-member LLCs and nonprofit corporations. You need a Prepaid Account or Debit Flex Account first, and you may have to give information about you or your business so Cash App can verify and approve the account.
Can I have a personal and a business Cash App account?
You can have a personal and a business Cash App account at the same time. You create the business account from your personal one, and your personal and business accounts are linked to the same email or phone number. Keep sales in the business account and personal payments in the personal one, since you need a personal Cash App account to accept payments from friends and family.
Can Cash App make me switch to a business account?
Cash App can make you switch to a business account. Its terms say Cash App may require you to switch if it determines you are using your account to sell goods and services. The alternative is Earn in P2P, an optional feature under which eligible sole proprietors can receive payments for goods and services in a personal account without opening a business account.
Does a Cash App business account send a 1099-K?
A Cash App business account gets a Form 1099-K when it receives more than $20,000 in gross payments and more than 200 transactions in 2025. Some states report at lower amounts, and Cash App's help center lists them. Whatever form you get, the IRS says you must report all income from selling goods or services, whatever amount is reported.