Formation Types

Standardized business formation type codes used in the rs_formation_type field.

Overview

RiskScout normalizes your institution's business formation codes to these standard categories. This enables consistent risk assessment of legal entity structures.

Your original formation code is preserved in formation_type, while rs_formation_type contains the mapped standard value.

Code Values

Code	Description
`Sole Proprietorship`	Individually-owned business, not a separate legal entity from the owner
`General Partnership (GP)`	Business owned by two or more individuals, with shared liability and management
`Limited Partnership (LP)`	Partnership with both general and limited partners; limited partners have restricted liability
`Limited Liability Partnership (LLP)`	Partnership where all partners have limited liability for business debts and actions
`C Corporation (C Corp)`	Corporation taxed separately from owners, offering liability protection
`S Corporation (S Corp)`	Corporation with pass-through taxation for qualifying shareholders, limiting double taxation
`Professional Corporation (PC)`	Corporation providing services requiring licensure, like legal or medical services
`Limited Liability Company (LLC)`	Business structure offering liability protection with flexible tax options
`Cooperative`	Member-owned business focused on meeting member needs over profits
`Nonprofit Organization`	Organization operating for charitable, educational, or public benefit purposes, tax-exempt
`Benefit Corporation (B Corp)`	Corporation committed to social and environmental impact alongside profit
`Joint Venture`	Business arrangement between two or more entities for a specific project or purpose

Usage Example

customer_number,legal_name,formation_type,rs_formation_type
B001,Acme Corp,CORP,C Corporation (C Corp)
B002,Smith & Jones LLP,LLP,Limited Liability Partnership (LLP)
B003,Community Food Co-op,COOP,Cooperative

Mapping Guidance

Your Formation Type	Map To
Sole Prop, SP, Individual Business	`Sole Proprietorship`
Partnership, GP	`General Partnership (GP)`
LP, Ltd Partnership	`Limited Partnership (LP)`
LLP	`Limited Liability Partnership (LLP)`
Corp, Corporation, Inc	`C Corporation (C Corp)`
S-Corp	`S Corporation (S Corp)`
PC, Professional Corp	`Professional Corporation (PC)`
LLC, Limited Liability Company	`Limited Liability Company (LLC)`
Coop, Cooperative	`Cooperative`
Nonprofit, 501c3, NGO	`Nonprofit Organization`
B-Corp, Benefit Corp	`Benefit Corporation (B Corp)`
JV, Joint Venture	`Joint Venture`

Risk Considerations

Higher Scrutiny Entities

Some formation types may warrant additional due diligence:

Shell company indicators - LLCs with no clear business purpose
Nominee structures - Complex ownership chains
Foreign-owned entities - Additional beneficial ownership review

Beneficial Ownership

FinCEN CDD Rule requirements vary by formation type:

Formation Type	BO Requirements
`C Corporation (C Corp)`	25%+ shareholders + control person
`LLC`	25%+ members + control person
`Limited Partnership (LP)`	General partners + 25%+ limited partners
`Sole Proprietorship`	Individual owner
`Nonprofit Organization`	Exempt (but control person recommended)

Overview​

Code Values​

Usage Example​

Mapping Guidance​

Risk Considerations​

Higher Scrutiny Entities​

Beneficial Ownership​