A beneficiary is simply the name or legal entity that owns an account.
In Sequence, every account (whether it's a Pod, an Income Source, or an external connection) must be tied to the correct beneficiary to keep your finances clean, compliant, and running smoothly.
Pods & Income Sources
Pods & Income Sources
When you create a Pod or an Income Source, you’re opening a real checking account with Thread Bank.
That means the beneficiary you choose becomes the official legal owner of that account.
Choosing the wrong beneficiary can cause issues like:
Failed deposits (name mismatch)
Incorrect tax reporting
Funds ending up under the wrong entity
Problems with processors, payroll, or clients sending money in
Example: If a client sends funds to your Income Source but the account is under the wrong business name, the deposit may fail.
2. External Accounts
2. External Accounts
When you connect an external bank account, Sequence asks you to choose which beneficiary it belongs to.
This must match the entity on the bank’s side so balances sync correctly and transfers run without issues.
Registering a Business First
If you want to use a business as a beneficiary, you need to register it first.
Once approved, it will appear in your dropdown anytime you're asked to pick a beneficiary.
If you registered your business during signup, it will already be there.
Adding a New Beneficiary
Need to add another entity?
Go to:
Settings → Beneficiaries → + Add a new business
Full instructions are in the Register a Business page.
Key Reminder
Always make sure the beneficiary matches the true owner of the account when you:
Create an Income Source
Open a Pod
Connect an external account
This keeps everything aligned, and prevents naming issues, deposit failures, and tax headaches.
Next up → Co-Owners & Viewers — how to share access and collaborate securely inside Sequence.