The entity type must match the classification on the tax record

The requirementstatement

The selected entity type must match how the business is classified on its tax record, with documentation where the classification is not machine-verifiable.

Severityseverity: BlockingBLOCKINGBreaking this rule gets the submission rejected. There is no partial credit.
When it bitesphase: Gates approvalapprovalGet this wrong and the brand or campaign is refused at registration.
What is checkedobject: brand.entity_type vs the tax record
Where it liveslayer: BrandBRAND
How Ekas settles itdetectability: External recordEXTERNAL_DATA; The fact that settles it lives in a register we cannot query, such as the IRS file, a postal database, or another provider’s tenant. Reported as a warning with the evidence to check, not as a pass.
What the fix involvesfailureClass: Wait on someone elseTERMINAL_EXTERNAL; Needs an external system or a waiting period, such as IRS propagation, a vetting result, or a carrier queue.
Who requires itauthorities: TCRTwilioBandwidth
When it appliesapplicabilityText: Applies to every 10DLC registration.

Why this rule existsrationale

Entity type drives which verification path runs and which use cases open, so it is checked against the tax classification rather than taken on trust. Honest mismatches are everywhere: an LLC taxed as an S-corp, a member-owned co-operative, a non-profit that never completed its exemption. The registrant picks the description that feels true and the record says something else.

How to fix itremediation

Match the entity type to the classification on the IRS letter rather than to how the business describes itself. Nearly every commercial company — LLC, S-corp, C-corp, partnership — is PRIVATE_PROFIT. Where the classification is genuinely unusual, attach the determination letter with the registration.

Provider rejection codescodes

The code you get back when this rule is what failed, and whether that provider lets you resubmit.

Provider	Code	Resubmit
Twilio	30796	Yes
Twilio	30797	Yes
Twilio	30798	Yes

Check this yourselfattestation

No tool can settle this one for you. Here is the check, and what wrong looks like.

Does the entity type you selected match the classification on the IRS letter, rather than how the business describes itself?

1Read the classification on the CP-575 or the determination letter.
2Nearly every commercial company — LLC, S-corp, C-corp, partnership — is PRIVATE_PROFIT, whatever it calls itself internally.
3Where the classification is genuinely unusual (a co-operative, a mutual association), attach the determination letter with the registration.

What wrong looks like: An LLC taxed as an S-corp picks the description that feels most accurate, and the record says something else. The mismatch fails the verification path rather than merely re-grading it.

Notesnotes

The tax record is not something we can read. The user has to check their CP-575 or determination letter and pick the entity type that matches it — and where the two genuinely differ, attach the document rather than arguing the point in an appeal, because the reviewer is comparing against the same record.

Rules you will hit next

Other brand rules at the same severity. A registration is judged as a whole, not rule by rule.

BRD-001A legal company name is required for every entity but a sole proprietorBlockingBLOCKING BRD-002Legal name must match the IRS record for the EINBlockingBLOCKING BRD-003Legal name must carry its exact entity suffix as filedBlockingBLOCKING BRD-008Legal name must not carry an appended personal name or roleBlockingBLOCKING BRD-009The legal name field takes the legal name, not the trading nameBlockingBLOCKING BRD-011A legal business name may back only one brand across the whole registryBlockingBLOCKING

All brand rules

BRD-041 is one of 196 brand rules in the 915-rule 10DLC registry. Free to cite under CC BY 4.0.