🚫 Things That Prevent Your Stripe Account From Being Shut Down
- The Blueprint Team
- 13 hours ago
- 6 min read
Stripe is one of the most popular payment processors for entrepreneurs and small businesses. But here’s the catch: Stripe is quick to freeze or shut down accounts if you don’t play by their rules. Losing your account can shut down your cash flow overnight. The good news? With the right systems in place, you can protect your Stripe account and keep your business running smoothly.
Too many business owners are opening Stripe the wrong way — and they’re getting flagged or shut down. Don’t let this happen to you.
👉 Stripe is for REAL businesses. You must sell actual products or services.
👉 Prices must match. What’s on your website must match your invoices.
🚫 Avoid these words: Real Estate, Investment, Trust — they trigger Stripe’s system.
👉 Every company needs its own
EIN
Bank account
Stripe account
Domain email, and
Website/landing page.
The Right Way to Open a Stripe Account ( Without Getting Flagged)
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.
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. Stripe position itself as financial infrastructure for real 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.
Top Reasons Stripe Flags Your Account
There are two main reasons:
Wrong Business Type
Solution: Always position your company as Business Consulting Services - Stripe-approved.
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 StanStore, 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 a full list check this link Prohibited and Restricted Businesses | Stripe
KEEP IN MIND
Be Honest With Your Business Type
Don’t misclassify your business. If you sell digital products, don’t say you sell consulting services just to get approved faster.
Stripe has “restricted” and “prohibited” businesses (like certain financial services, CBD, gambling, high-risk credit repair, etc.). Be upfront, because if they catch you later, they’ll shut you down without warning.
Keep Chargebacks Low
High chargeback rates = red flag. Stripe doesn’t care who’s right or wrong — too many disputes make you look “high-risk.”
Reduce chargebacks by:
Clear product descriptions.
Easy refund policies.
Great customer service response times.
Aim to keep chargebacks under 1% of transactions.
Don't Mix Personal & Business
Run all payments through your registered business. Don’t test your account with personal purchases or “send money” to yourself. That triggers Stripe’s fraud systems. Keep a clean separation: biz bank account + biz Stripe account.
Watch Out for Sudden Spikes in Sales
Stripe loves consistency. If you’re averaging $2,000/month and suddenly hit $20,000, they’ll freeze your account to “review.” Prepare them for spikes by emailing support if you’re launching a new product or expecting a big promo.
Avoid High-Risk Behaviors
Don’t run payments for other people under your account. (Example: running transactions for your friend’s business). Don’t sell products/services that violate their policy just because “others are doing it.” Stripe audits accounts regularly.
Keep Good Records
Save invoices, receipts, and proof of delivery. If Stripe flags a transaction, you’ll need evidence to win disputes. Organized records = faster resolutions.
Verify Your Identity & Business Info Early
Upload legit documents (business EIN, ID, bank statements) as soon as they request them.
Incomplete or fake documents = instant shutdown.
WHAT I'VE LEARED ABOUT 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.
⚠️ 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.
WHY I TURED MY LLC INTO C-CORP AND FORMED A 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.
The Parent Company invoices the Operating Company.
The Property Management Company invoices the Parent Company.
The 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.
Stripe Funding Facts
Stripe is for businesses only - here's what you need to know:
Sell real products/services. Your invoices must match site.
Don't use restricted words like (real estate, investment, or trust). Position your businesses as consulting/services.
LLCs, partnerships, S-Corps = Stripe tied will to your personal credit.
C-Corp is the only way to build funding strategies without your personal credit being checked.
💡 This isn’t a shortcut. It’s not a get-rich-quick scheme. Its business done the right way.
“If you want to take this further and learn how to build bulletproof business credit to pair with your Stripe account, check out our Boss Moves & Business Credit series.”
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