Create A Business Customer

Overview

A business is one of the core entities on Synctera: beneficial owners, accounts, ACH, and cards are all tied to the business resource. The object holds identification information (legal name, Employer Identification Number, address, phone number, email) and status attributes that track its lifecycle from prospect, to active business, to inactive former customer. Creating a business involves more than a single call: you capture the people acting on its behalf, its ownership and control structure, the disclosures its agent acknowledges, and finally run Know Your Business (KYB) verification before the business can transact. Key characteristics:

Composite — a business is linked to people (beneficial owners, managers) and, potentially, to other owning businesses through relationships.
Dual-status — an editable status (administrative state) and a read-only verification_status (KYB result) together gate what the business can do.
Verified — most banking activity requires the business to pass KYB, which sets verification_status to ACCEPTED.
Reusable — the returned id links the business to disclosures, accounts, cards, and watchlists.

Prerequisites

This guide assumes you are familiar with:

Need to Know — Environments
Need to Know — Authentication
Create a Personal Customer — beneficial owners and managers are people
KYC/KYB Verification
Record Disclosure Acceptance

The curl examples authenticate with an apikey environment variable. Some examples depend on identifiers generated by previous steps; these are shown as placeholders like {BUSINESS_ID}. At a high level, creating a business follows these steps:

Create a person acting on behalf of the business.
Create the business.
Capture ownership and control structure (beneficial owners, managers, owning businesses).
Record disclosures, including beneficial ownership certification.
Activate the business.
Run KYB.
Use the business with other APIs.

Creating and activating a business

Create a person acting on behalf of the business

Collect identity information for the person acting on behalf of the business — typically a beneficial owner or manager who is signing up for your product. If they are neither, review business documentation to verify their affiliation before creating an account for the business.The snippet below creates a personal customer. Note is_customer: set it to false here, or to true if this person should also transact on the platform in their own right.

curl \
  -X POST \
  -H "Authorization: Bearer $apikey" \
  -H 'Content-Type: application/json' \
  https://api.synctera.com/v2/persons \
  --data-binary '
  {
    "first_name": "John",
    "middle_name": "James",
    "last_name": "Doe",
    "dob": "1981-09-14",
    "email": "john@example.com",
    "phone_number": "+16055512212",
    "ssn": "456-78-9999",
    "legal_address": {
      "address_line_1": "123 Main St.",
      "city": "San Francisco",
      "state": "CA",
      "postal_code": "94105",
      "country_code": "US"
    },
    "is_customer": false,
    "status": "ACTIVE"
  }'

Use the id from the response to identify the person taking actions on behalf of the business.

Create the business

Create the business with PROSPECT status to indicate it is not yet fully configured; missing attributes (e.g. addresses) can be added later. Set is_customer to true so the business can be an account holder rather than just an owner. Use POST /v2/businesses:

curl \
  -X POST \
  -H "Authorization: Bearer $apikey" \
  -H 'Content-Type: application/json' \
  https://api.synctera.com/v2/businesses \
  --data-binary '
  {
    "status": "PROSPECT",
    "is_customer": true,
    "entity_name": "Acme Trap Company",
    "trade_names": ["Acme", "Acme Corp", "CorporationID#77231"],
    "formation_date": "2000-01-01",
    "formation_state": "NY",
    "structure": "CORPORATION",
    "phone_number": "+12124567890",
    "ein": "12-3456789",
    "legal_address": {
      "address_line_1": "50 Main St",
      "city": "New York",
      "state": "NY",
      "postal_code": "12345",
      "country_code": "US"
    }
  }'

The response includes the system-generated id, used for future GET, PATCH, and DELETE requests and to link the business to disclosures and accounts:

{
  "id": "{BUSINESS_ID}",
  "status": "PROSPECT",
  "verification_status": "UNVERIFIED",
  "is_customer": true,
  "entity_name": "Acme Trap Company",
  "trade_names": ["Acme", "Acme Corp", "CorporationID#77231"],
  "formation_date": "2000-01-01",
  "formation_state": "NY",
  "structure": "CORPORATION",
  "phone_number": "+12124567890",
  "ein": "12-3456789",
  "legal_address": {
    "address_line_1": "50 Main St",
    "city": "New York",
    "state": "NY",
    "postal_code": "12345",
    "country_code": "US"
  },
  "creation_time": "2022-04-29T21:12:55.179008Z",
  "last_updated_time": "2022-04-29T21:12:55.179008Z"
}

Capture ownership and control structure

Capture the ownership structure of the business — required for KYB and compliance. Federal regulation requires financial institutions to obtain, verify, and record information about the beneficial owners of legal entities.

What information do I have to provide?

Provide sufficient information to KYC — such as name, address, date of birth, and Social Security Number (or passport number or similar, for foreign persons) — for each individual who:

Directly or indirectly owns 25% or more of the equity interests of the legal entity (some banks require information on owners with a smaller share, depending on risk), and
Has significant responsibility for managing the entity (e.g. CEO, CFO, COO, Managing Member, General Partner, President, Vice President, or Treasurer).

Beneficial owners. A business can be owned by people (beneficial owners) or by other businesses, which can in turn have their own owners. This example uses the simplest structure: a single beneficial owner. See KYC/KYB Verification for complex examples.You can reuse the id of the person created in step 1 or create separate personal customers as beneficial owners:

curl \
  -X POST \
  -H "Authorization: Bearer $apikey" \
  -H 'Content-Type: application/json' \
  https://api.synctera.com/v2/persons \
  --data-binary '
  {
    "first_name": "Christopher",
    "middle_name": "James",
    "last_name": "Albertson",
    "dob": "1985-06-14",
    "email": "chris@example.com",
    "phone_number": "+16045551212",
    "ssn": "456-78-9999",
    "legal_address": {
      "address_line_1": "456 Main St.",
      "city": "San Francisco",
      "state": "CA",
      "postal_code": "94105",
      "country_code": "US"
    },
    "is_customer": false,
    "status": "ACTIVE"
  }'

Link the person to the business as a beneficial owner with POST /v2/relationships, using relationship type BENEFICIAL_OWNER_OF:

curl \
  -X POST \
  -H "Authorization: Bearer $apikey" \
  -H 'Content-Type: application/json' \
  https://api.synctera.com/v2/relationships \
  --data-binary '
  {
    "from_person_id": "{PERSON_ID}",
    "relationship_type": "BENEFICIAL_OWNER_OF",
    "to_business_id": "{BUSINESS_ID}",
    "additional_data": {
      "percent_ownership": 100
    }
  }'

Business managers. KYB also requires at least one managing person — someone who exercises significant control, such as an executive officer or board member. Link them with a MANAGING_PERSON_OF relationship:

curl \
  -X POST \
  -H "Authorization: Bearer $apikey" \
  -H 'Content-Type: application/json' \
  https://api.synctera.com/v2/relationships \
  --data-binary '
  {
    "from_person_id": "{PERSON_ID}",
    "relationship_type": "MANAGING_PERSON_OF",
    "to_business_id": "{BUSINESS_ID}",
    "additional_data": {
      "title": "OFFICER"
    }
  }'

Owning businesses. Collect information on any business that owns more than 25% of the business customer. Create a business resource for the owner, then link the two with an OWNER_OF relationship:

curl \
  -X POST \
  -H "Authorization: Bearer $apikey" \
  -H 'Content-Type: application/json' \
  https://api.synctera.com/v2/relationships \
  --data-binary '
  {
    "from_business_id": "{OWNING_BUSINESS_ID}",
    "relationship_type": "OWNER_OF",
    "to_business_id": "{OWNED_BUSINESS_ID}",
    "additional_data": {
      "percent_ownership": 25.1
    }
  }'

Once all ownership information is entered, have the agent certify that it is complete and correct. Display the following text and record an OWNER_CERTIFICATION disclosure on save:

I certify to the best of my knowledge that the information entered is complete and correct.

Record disclosures

Onboarding a business involves disclosing information such as terms of service. Start by tracking the beneficial ownership certification.Beneficial ownership disclosure. You need the id of the person entering beneficial-owner information (from step 1) and the business id. That person should be related to the business as a BENEFICIAL_OWNER_OF or MANAGING_PERSON_OF; if not, collect business formation documentation and verify their relationship first. If they are not yet a customer, create a person to represent them.Create the record with POST /v2/disclosures, using the OWNER_CERTIFICATION type. acknowledging_person_id and business_id are required:

curl \
  -X POST \
  -H "Authorization: Bearer $apikey" \
  -H 'Content-Type: application/json' \
  https://api.synctera.com/v2/disclosures \
  --data-binary '
  {
    "acknowledging_person_id": "{PERSON_ID}",
    "business_id": "{BUSINESS_ID}",
    "type": "OWNER_CERTIFICATION",
    "version": "1.0",
    "event_type": "ACKNOWLEDGED",
    "disclosure_date": "2022-04-17T02:04:34Z"
  }'

The response is a disclosure object:

{
  "id": "{DISCLOSURE_ID}",
  "acknowledging_person_id": "{PERSON_ID}",
  "business_id": "{BUSINESS_ID}",
  "type": "OWNER_CERTIFICATION",
  "version": "1.0",
  "event_type": "ACKNOWLEDGED",
  "disclosure_date": "2022-04-17T00:00:00Z",
  "creation_time": "2022-04-29T21:14:24.953307Z",
  "last_updated_time": "2022-04-29T21:14:24.953307Z"
}

Other disclosures. Record other types such as REG_E or E_SIGN with the same endpoint. Work with your Synctera partner to determine which disclosures your business needs:

curl \
  -X POST \
  -H "Authorization: Bearer $apikey" \
  -H 'Content-Type: application/json' \
  https://api.synctera.com/v2/disclosures \
  --data-binary '
  {
    "business_id": "{BUSINESS_ID}",
    "acknowledging_person_id": "{PERSON_ID}",
    "type": "REG_E",
    "version": "1.0",
    "event_type": "ACKNOWLEDGED",
    "disclosure_date": "2022-04-17T02:04:34Z"
  }'

Activate the business

Once you have collected enough information to run KYB and the entity is ready to do business on your platform, move it to ACTIVE with PATCH /v2/businesses/{BUSINESS_ID}:

curl \
  -X PATCH \
  -H "Authorization: Bearer $apikey" \
  -H 'Content-Type: application/json' \
  https://api.synctera.com/v2/businesses/{BUSINESS_ID} \
  --data-binary '
  {
    "status": "ACTIVE"
  }'

Run KYB

An ACTIVE business whose verification_status is still UNVERIFIED cannot perform most banking activities. Verify its identity with a Know Your Business (KYB) check using POST /v2/verifications/verify:

curl \
  -X POST \
  -H "Authorization: Bearer $apikey" \
  -H 'Content-Type: application/json' \
  https://api.synctera.com/v2/verifications/verify \
  --data-binary '
  {
    "customer_consent": true,
    "customer_ip_address": "{CUSTOMER_IP_ADDRESS}",
    "business_id": "{BUSINESS_ID}"
  }'

This returns a list of all the verifications that were run and a result for each. See the KYC/KYB Verification guide for the full range of verification and risk checks.If the verifications pass, the business’s verification_status becomes ACCEPTED. Confirm with GET /v2/businesses/{BUSINESS_ID}:

curl \
  -X GET \
  -H "Authorization: Bearer $apikey" \
  https://api.synctera.com/v2/businesses/{BUSINESS_ID}

{
  "id": "{BUSINESS_ID}",
  "status": "ACTIVE",
  "verification_status": "ACCEPTED",
  "verification_last_run": "2022-04-29T21:19:09.432601Z",
  "is_customer": true,
  "entity_name": "Acme Trap Company",
  "trade_names": ["Acme", "Acme Corp", "CorporationID#77231"],
  "formation_date": "2000-01-01",
  "formation_state": "NY",
  "structure": "CORPORATION",
  "phone_number": "+12124567890",
  "ein": "12-3456789",
  "legal_address": {
    "address_line_1": "50 Main St",
    "city": "New York",
    "state": "NY",
    "postal_code": "12345",
    "country_code": "US"
  },
  "creation_time": "2022-04-29T21:12:55.179008Z",
  "last_updated_time": "2022-04-29T21:19:09.521182Z"
}

Use the business with other APIs

An active, verified business can be used across the platform:

The Accounts API creates and manages accounts with the business as an account holder.
The Cards API creates and manages credit or debit cards linked to the business.
The Relationships API links the business to another business as an owner.
The Watchlists API subscribes the business to watchlist monitoring so you can check for its presence on security risk watchlists.

Business status attributes

A business carries two independent status attributes, and both gate money movement, card issuance, and other operations:

status — an editable attribute representing the administrative state of the business.
verification_status — a read-only attribute set by the platform to reflect the result of KYB and other verification checks.

Business status

The status attribute is controlled by your API client. It is up to you to decide what you consider an ACTIVE, FROZEN, or INACTIVE business. All states other than ACTIVE are restricted and do not allow most banking operations.

Status	Description
`ACTIVE`	An active business.
`CANCELLED`	The business filed a cancellation, or failed to file its periodic report after notice of forfeiture of its rights to do business.
`CONVERTED`	The business type changed to another type within the same jurisdiction.
`DISSOLVED`	The business filed articles of dissolution or a certificate of termination.
`FROZEN`	The business’s actions are blocked for security, legal, or other reasons.
`INACTIVE`	No longer active, e.g. a former customer.
`MERGED`	The business ceased to exist by merging into another entity.
`PROSPECT`	A potential business customer, used for information-gathering and disclosures.
`SUSPENDED`	The business lost the right to operate in its registered jurisdiction.

There are no restrictions on state transitions, but certain fields (e.g. entity_name) are required by all states except PROSPECT. Typical transitions:

Verification status

To initiate transactions, an active business must also pass verification (identity and watchlist checks). All states other than ACCEPTED are restricted and do not allow most banking operations.

Verification status	Description
`ACCEPTED`	The business is successfully verified.
`PENDING`	Verification is in progress.
`PROVISIONAL`	Partially verified or verified with restrictions.
`REJECTED`	The business was rejected.
`REVIEW`	Verification ran and identified issues that require review.
`UNVERIFIED`	Verification has not been completed.

See the KYC/KYB Verification guide for how verifications are performed and what the results mean.

Additional business documentation

To mitigate fraud and money laundering, we recommend gathering the following documentation and attaching it to the business with the Documents API:

Legal entity organization documentation — articles of incorporation, partnership agreement, certificate of organization, operating agreement, etc.
Money Services Business (MSB) status — whether the entity is a registered MSB and, if so, its FinCEN registration.
Ongoing re-KYB (e.g. annually or bi-annually) — required for certain higher-risk accounts subject to the Sponsor Bank’s policies, or whenever unusual activity occurs. Higher-risk examples include cash-intensive businesses, non-US businesses, crypto businesses, MSBs, and marijuana-related businesses.

Best practices

A business cannot perform most banking operations until both status is ACTIVE and verification_status is ACCEPTED. Capture the full ownership structure before running KYB — incomplete beneficial-owner data is a common cause of verification failures.

Start as a PROSPECT — create the business early and enrich it as information arrives, activating only when it is ready to transact.
Model the full ownership tree — link every beneficial owner (≥25%), at least one managing person, and any owning businesses before KYB.
Record the ownership certification — capture the OWNER_CERTIFICATION disclosure from the agent who entered the data.
Never rely on status alone — an ACTIVE business may still be UNVERIFIED; gate sensitive actions on both attributes.
Plan for re-KYB — schedule periodic re-verification for higher-risk businesses per your Sponsor Bank’s policies.

Create a Personal Customer

Onboard the people who act as beneficial owners and managers.

KYC/KYB Verification

Understand KYB checks and complex ownership verification.

Record Disclosure Acceptance

Record ownership certification and other required disclosures.

Enhanced Due Diligence

Submit extra information for high-risk businesses and CRR responses.

Create Accounts

Open accounts with the business as an account holder.

Overview

Products

Onboard a Personal Customer

Onboard a Business Customer

Create Accounts

Link External Accounts

Link External Cards

Issue Cards

Move Money

Get Transactions

Dispute Transactions

Platform Tools

Create A Business Customer

Overview

Prerequisites

Creating and activating a business

What information do I have to provide?

Business status attributes

Business status

Verification status

Additional business documentation

Best practices

Create a Personal Customer

KYC/KYB Verification

Record Disclosure Acceptance

Enhanced Due Diligence

Create Accounts

API reference

​Overview

​Prerequisites

​Creating and activating a business

​What information do I have to provide?

​Business status attributes

​Business status

​Verification status

​Additional business documentation

​Best practices

​Related guides

Create a Personal Customer

KYC/KYB Verification

Record Disclosure Acceptance

Enhanced Due Diligence

Create Accounts

​API reference

Overview

Prerequisites

Creating and activating a business

What information do I have to provide?

Business status attributes

Business status

Verification status

Additional business documentation

Best practices

Related guides

API reference