What you need before you start
Setting up a Square account takes about 10 minutes if you have the right information ready. You will need a valid email address, a phone number, and a way to verify your identity — usually a government-issued ID and your Social Security number or tax ID. Square will also ask for your business address and bank account details so they can deposit payments you receive.
If you are setting up Square for a business (rather than personal use), have your business name and structure ready — whether it is a sole proprietorship, LLC, corporation, or partnership. Square asks this during setup, and it affects how they report your income to the IRS.
You do not need to have a business license or be registered with your state to start, though Square may ask about this later depending on your business type. Have your bank account information handy: the routing number and account number from a check, or log into your bank's website to find them.
Key Takeaways
- You can create a Square account online in minutes using an email address, phone number, and government ID.
- Square deposits money into your bank account, so you will need your routing and account numbers during setup.
- Your account is limited until you verify your identity, which happens through Square's verification process after you provide your Social Security number or tax ID.
- You can start accepting card payments when ready after account creation, but deposits may be held until identity verification is complete.
- Square charges a fee for each card transaction, so review their current pricing before you process your first payment.
Creating your account online
Go to squareup.com and click the "Sign Up" button. Enter your email address and create a password — Square requires at least 8 characters, and a mix of uppercase, lowercase, numbers, and symbols makes it stronger. You will then enter your phone number and confirm it by text or call.
Next, Square asks for your name and business information. If you are a sole proprietor, your personal name is your business name. If you operate under a different name, enter that in the "Business name" field. Select your business structure from the dropdown: sole proprietor, partnership, LLC, S-corporation, or C-corporation. This is important because it determines how Square reports your income.
You will then enter your business address. This is where Square sends any physical mail and where they believe your business operates. If you work from home, use your home address. If you have a physical location, use that instead.
Verifying your identity
After you create your account, Square requires identity verification before you can receive deposits. This is a federal requirement, not a Square choice. You will need to provide your Social Security number (if you are a sole proprietor) or your Employer Identification Number (EIN, if you have a business entity). Square also asks for your date of birth and a government-issued ID — a driver's license, passport, or state ID card.
Square uses a third-party service to verify this information against government records. The process is automated and usually completes within a few minutes, though it can take up to 24 hours. You will receive an email when verification is complete. Until then, your account is active but your deposits may be held.
If verification fails, Square will tell you why and give you a chance to correct the information. Common reasons include a mismatch between the name on your ID and the name in your account, or an address that does not match government records. If you recently moved, your ID address may not match yet — contact your state's DMV to update it, or call Square's support line to explain the situation.
Adding your bank account for deposits
Square needs your bank account information to deposit the money you receive from customers. During account setup, you will see a section for "Bank account." Enter your routing number and account number — you can find both on a check, or log into your bank's website to locate them.
Square will make two small test deposits to your account (usually less than $1 each) within one to two business days. Check your bank statement and return to Square to confirm the amounts. This proves you own the account and prevents someone else from using a bank account that is not theirs.
Once you confirm the test deposits, Square knows where to send your money. Deposits normally arrive within one to two business days after a customer pays you, though this varies by your bank and the day of the week. Weekends and holidays can add delay.
Choosing how you will accept payments
Square offers several ways to take payments depending on your business. Square Reader is a small device that plugs into your phone or tablet's headphone jack or charging port and reads credit and debit cards. You can also use Square Online to create a straightforward website where customers pay you, or Square Invoices to send a payment link by email or text. If you have a physical store, Square Register is a full point-of-sale system that runs on an iPad.
For most people starting out, Square Reader is the simplest choice. It costs between $10 and $50 depending on which version you buy, and you can order it during account setup or buy it separately. You do not have to choose right now — you can add these tools to your account later.
Each payment method has its own fee structure. Card-present transactions (when the customer's card is physically present) usually cost less than card-not-present transactions (like online payments or invoices). Review Square's current pricing page before you process your first payment so you know what you will be charged.
Setting up your first payment
Once your account is created and verified, you can accept your first payment. If you ordered a Square Reader, it will arrive in the mail within a few days. read the Square app on your phone or tablet, sign in with your email and password, and follow the prompts to connect your Reader.
To process a payment, open the Square app and tap "Charge." Enter the amount, select whether the customer is paying in person or remotely, and follow the prompts. If you are using a Reader, the customer inserts or taps their card. Square shows you the fee that will be charged and deposits the money into your bank account within one to two business days.
Keep in mind that your first few deposits may be held or limited while Square monitors your account for fraud. This is normal and usually lasts a few weeks. After that, deposits arrive on a regular schedule.
Understanding Square's fees and limits
Square charges a percentage of each transaction plus a small fixed fee. The exact amount depends on how the payment is made — in-person card payments cost less than online payments or invoices. Square's website shows their current rates, which change occasionally.
When you first create your account, Square may limit how much money you can receive per day or per month. These limits increase as you process more payments and build a history with Square. If you hit a limit, you can contact Square to request an increase, though they may ask for more information about your business first.
Square also charges monthly fees for some features — for example, Square Online has a monthly subscription if you want a full website. The basic Square Reader and invoicing tools have no monthly fee, only per-transaction charges.
Frequently Asked Questions
How long does it take to get my first deposit?
Your first deposit arrives one to two business days after your first customer payment, assuming your identity is verified and your bank account is confirmed. If verification is still pending, Square may hold the deposit until that is complete. Weekend and holiday delays can add time.
What if I do not have a Social Security number?
If you are a non-citizen, you can use an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number. If you have a business entity like an LLC or corporation, you can use your Employer Identification Number (EIN). Contact Square support to discuss your specific situation.
Can I change my bank account after I set it up?
Yes. Log into your Square account, go to Settings, and select "Bank account." You can add a new account or remove an old one. Square will make test deposits to the new account before deposits begin flowing there.
What happens if my identity verification fails?
Square will send you an email explaining why and give you a chance to update your information. Common issues are name mismatches or outdated address information. You can correct it in your account settings and resubmit, or call Square support if you need help.
Do I need a business license to set up Square?
No. You can create a Square account without a business license. However, some business types (like food service or alcohol sales) may require a license to operate legally in your area, and Square may ask for proof of that license later depending on what you sell.