1. Agreement to Terms
By creating an account on Categorized (“Service”), operated by Categorized LLC (“Company,” “we,” “us”), you (“Client,” “you”) agree to be bound by these Terms of Service (“Terms”). If you do not agree, do not use the Service. These Terms constitute a legally binding agreement between you and the Company.
2. Description of Service
Categorized provides automated bookkeeping services for Schedule C (sole proprietorship) filers. The Service connects to your financial institutions via Plaid to import transactions, categorizes them using AI and rule-based systems, and produces financial reports including profit & loss statements and general ledger views. Additional schedule types may be supported in the future; these Terms apply to any features we add unless we say otherwise.
3. What the Service Is NOT — Professional Services Disclaimer
THE SERVICE DOES NOT CONSTITUTE AND SHALL NOT BE CONSTRUED AS:
- Tax advice, tax preparation, or tax filing services
- Legal, financial, investment, or accounting advice
- Audit, attest, review, compilation, or assurance services
- Services of a Certified Public Accountant or licensed professional
The Service is a software tool that assists you in organizing and categorizing your financial transactions. You are solely responsible for the accuracy of your tax filings and financial decisions. You should consult qualified professionals (CPA, tax attorney, financial advisor) for professional advice.
The Company does not hold itself out as providing professional accounting services through the Service. The fact that the Company’s principals may hold professional licenses does not make the Service a professional service. Use of the Service does not create a client or professional-services relationship with any accounting firm affiliated with the Company’s principals.
4. Subscription & Commitment
- The Service is billed at $19.00 per entity per month, plus applicable tax (“Subscription Fee”).
- Each entity requires a separate subscription.
- All subscriptions require a 12-month minimum commitment (“Commitment Period”), beginning on the date of your first payment for that entity.
- Subscriptions are billed monthly to your designated payment method via Stripe.
- After the Commitment Period, your subscription automatically continues on a month-to-month basis until canceled.
- Subscription Fees are subject to change with 30 days written notice. Changes do not apply during an active Commitment Period.
- The commitment, automatic-continuation, and cancellation terms are also presented to you clearly at checkout, and you must affirmatively consent to them before we collect payment information. We will send you a reminder before your Commitment Period ends describing how the subscription continues and how to cancel.
5. Early Termination
- If you cancel a subscription during the Commitment Period, the remaining monthly Subscription Fees for that entity through the end of the Commitment Period remain payable (“Remaining Commitment Balance”).
- Example: If you cancel after 4 months, the Remaining Commitment Balance is 8 × $19 = $152.
- We collect the Remaining Commitment Balance by continuing to bill your subscription monthly through the end of the Commitment Period. Your service continues until then, and the subscription then ends automatically. We do not charge the balance as a lump sum.
- Upon cancellation, you will receive an export of your financial data (profit & loss, Schedule C report, general ledger, and transaction history) at no additional charge.
6. Cancellation After Commitment Period
- After the 12-month Commitment Period, you may cancel at any time.
- You may cancel online through the Service at any time — the same way you signed up. You do not need to call or email to cancel.
- Cancellation takes effect at the end of your current billing period.
- No refunds for partial months.
- After cancellation, your data remains exportable for 90 days. Following that period, your financial records are retained in archival form for up to 7 years for recordkeeping, audit-defense, legal-compliance, and fraud-prevention purposes, then permanently deleted, as described in our Privacy Policy. You may request earlier deletion after exporting, subject to the exceptions described in the Privacy Policy.
7. Payment Terms
- All payments are processed through Stripe, Inc. By providing payment information, you authorize us and Stripe to charge your payment method for all applicable fees.
- You are responsible for keeping your payment information current.
- If a payment fails, we will attempt to collect payment. If payment is not received within 30 days, your account may be suspended or canceled. Suspension does not relieve you of payment obligations during the Commitment Period.
- All fees are non-refundable except as required by applicable law or as expressly provided in these Terms (see Section 18 regarding Service discontinuation).
- You are responsible for any applicable taxes on the Service.
8. Separate Bank Account Requirement
- Each entity connected to the Service must use a dedicated bank account for that entity’s business.
- Commingled personal and business funds in the same account will produce inaccurate categorizations and financial reports.
- The Company is not responsible for inaccurate financial reports, categorizations, or any resulting damages arising from the use of commingled bank accounts.
9. Authorization to Access Your Financial Data (Plaid)
- The Service uses Plaid, Inc. to connect to your financial institutions. You expressly authorize the Company to access, retrieve, and use your financial-account and transaction data on your behalf, through Plaid, for the purpose of providing the Service.
- You provide your banking credentials directly to Plaid through its connection interface; the Company never receives or stores your banking login credentials.
- By connecting a financial institution, you also agree to Plaid’s End User Services Agreement and acknowledge Plaid’s End User Privacy Policy (https://plaid.com/legal/#end-user-privacy-policy).
- You represent that you are authorized to connect each account you connect to the Service.
10. Client Responsibilities
You are responsible for:
- Providing accurate and complete information during account setup
- Reviewing and correcting transaction categorizations produced by the Service
- Maintaining current and accurate payment information
- Keeping your account credentials secure
- Ensuring your use of the Service complies with applicable laws
- The accuracy and completeness of financial records provided to the Service
- All tax filings and financial decisions based on information from the Service
11. AI Categorization — Accuracy Disclaimer
- The Service uses artificial intelligence and rule-based systems to categorize financial transactions.
- No automated categorization system is 100% accurate. The Service’s categorizations are suggestions, not definitive classifications.
- You are responsible for reviewing all categorized transactions and correcting any errors before relying on them for any purpose, including tax preparation.
- The Company does not guarantee the accuracy, completeness, or reliability of any categorization, financial report, or other output produced by the Service.
- The Company shall not be liable for any tax penalties, interest, additional taxes owed, audit outcomes, or financial losses resulting from reliance on the Service’s categorizations or reports.
12. Warranty Disclaimer
THE SERVICE IS PROVIDED “AS IS” AND “AS AVAILABLE” WITHOUT WARRANTIES OF ANY KIND, WHETHER EXPRESS, IMPLIED, OR STATUTORY. THE COMPANY EXPRESSLY DISCLAIMS ALL WARRANTIES, INCLUDING BUT NOT LIMITED TO:
- IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT
- WARRANTIES REGARDING THE ACCURACY, RELIABILITY, OR COMPLETENESS OF ANY CONTENT, DATA, OR OUTPUT
- WARRANTIES THAT THE SERVICE WILL BE UNINTERRUPTED, ERROR-FREE, SECURE, OR FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS
- WARRANTIES ARISING FROM COURSE OF DEALING, USAGE OF TRADE, OR COURSE OF PERFORMANCE
Some jurisdictions do not allow the exclusion of certain warranties, so some of the above exclusions may not apply to you.
13. Limitation of Liability
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW:
(a) Exclusion of Damages. IN NO EVENT SHALL THE COMPANY, ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, OR AFFILIATES BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES, INCLUDING BUT NOT LIMITED TO:
- Loss of profits, revenue, or business
- Loss of data or data corruption
- Loss of goodwill
- Tax penalties, interest, or additional taxes
- Audit costs or outcomes
- Cost of procurement of substitute services
- Business interruption
WHETHER BASED ON WARRANTY, CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, OR ANY OTHER LEGAL THEORY, EVEN IF THE COMPANY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
(b) Liability Cap. THE COMPANY’S TOTAL AGGREGATE LIABILITY FOR ALL CLAIMS ARISING OUT OF OR RELATED TO THESE TERMS OR THE SERVICE SHALL NOT EXCEED THE TOTAL AMOUNT PAID BY YOU TO THE COMPANY IN THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO THE CLAIM.
(c) Essential Purpose. THE LIMITATIONS IN THIS SECTION SHALL APPLY EVEN IF ANY REMEDY PROVIDED HEREIN FAILS OF ITS ESSENTIAL PURPOSE.
14. Indemnification
You agree to indemnify, defend, and hold harmless the Company, its officers, directors, employees, agents, and affiliates from and against any and all claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys’ fees) arising out of or related to:
- Your violation of these Terms
- Your violation of any applicable law or regulation
- Any inaccuracy in financial records you provide to the Service
- Any tax filing or financial decision you make based on the Service’s output
- Your failure to review or correct categorizations produced by the Service
- Any claim by a third party arising from your breach of these Terms or your unlawful use of the Service
15. Intellectual Property
- The Service, including all software, algorithms, designs, text, graphics, and other content, is the exclusive property of the Company and is protected by intellectual property laws.
- You are granted a limited, non-exclusive, non-transferable, revocable license to access and use the Service for your internal business purposes during the term of your subscription.
- You may not copy, modify, distribute, sell, or lease any part of the Service.
- You may not reverse engineer or attempt to extract the source code of the Service.
- Your financial data remains your property. We claim no ownership rights over your data.
- If you provide feedback, suggestions, or ideas about the Service, you grant the Company a perpetual, irrevocable, royalty-free license to use them without restriction or compensation.
16. Data Ownership, License & Portability
- You retain ownership of all financial data you input or import into the Service.
- You grant the Company a non-exclusive, worldwide, royalty-free license to host, process, transmit, and use your data to provide, secure, maintain, and improve the Service, consistent with our Privacy Policy. This license ends when your data is deleted, except for de-identified or aggregated data as described below.
- You may export your data (profit & loss, Schedule C report, general ledger, and transaction history) at any time during your subscription, and upon cancellation or termination, at no charge.
- After cancellation, your data remains exportable for 90 days, is then retained in archival form for up to 7 years as described in the Privacy Policy, and is then permanently deleted. You may request earlier deletion after exporting, subject to the exceptions described in the Privacy Policy.
- We may retain and use aggregated data, and data that has been processed so it is not designed to identify you or your business, to improve the Service (including its categorization models) and for service analytics.
17. Acceptable Use
You agree not to:
- Use the Service for any unlawful purpose or in violation of any applicable law
- Attempt to gain unauthorized access to the Service or its systems
- Interfere with or disrupt the Service or servers
- Use the Service to process transactions for entities you do not own or have authorization to manage
- Resell, sublicense, or provide access to the Service to third parties
- Use automated systems (bots, scrapers) to access the Service without prior written consent
- Upload or transmit malicious code
18. Suspension & Termination
- We may suspend or terminate your access to the Service immediately if:
- You breach these Terms
- Your payment is overdue by more than 30 days
- We reasonably believe your use poses a security risk
- Required by law or court order
- Termination for breach does not relieve you of payment obligations during the Commitment Period.
- We may discontinue the Service with 90 days written notice. If we discontinue the Service, your remaining Commitment Period obligations are waived as of the discontinuation date, and any prepaid, unused fees will be refunded pro-rata. You will have at least 90 days from the discontinuation notice to export your data.
19. Force Majeure
Neither party shall be liable for any failure or delay in performance due to causes beyond its reasonable control, including but not limited to: acts of God, natural disasters, pandemics, war, terrorism, riots, government actions, power failures, internet outages, banking system outages, Plaid service interruptions, or Stripe service interruptions.
20. Dispute Resolution
(a) Informal Resolution. Before filing any formal proceeding, you agree to contact us at [email protected] and attempt to resolve the dispute informally for at least 30 days.
(b) Binding Arbitration. If the dispute cannot be resolved informally, you and the Company agree to resolve it through binding arbitration administered by the American Arbitration Association (AAA) under its Commercial Arbitration Rules or, where applicable under AAA’s policies, its Consumer Arbitration Rules. The arbitration shall take place in Miami-Dade County, Florida, or, where the AAA Consumer Arbitration Rules apply, in the county where you reside or another mutually agreed location, and may be conducted by videoconference or on written submissions where the applicable rules allow. The arbitrator’s decision shall be final and binding.
(c) Class Action Waiver. YOU AND THE COMPANY AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN YOUR INDIVIDUAL CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS ACTION, COLLECTIVE ACTION, OR REPRESENTATIVE PROCEEDING.
(d) Small Claims Exception. Either party may bring an individual action in small claims court if the claim qualifies.
(e) Arbitration Opt-Out. You may opt out of this arbitration agreement (including the class action waiver) by sending written notice to [email protected] within 30 days of first accepting these Terms, stating your name, account email, and intent to opt out. Opting out does not affect any other provision of these Terms.
(f) Injunctive Relief Exception. Either party may seek injunctive or other equitable relief in a court of competent jurisdiction to prevent actual or threatened infringement or misuse of intellectual property or unauthorized access to the Service.
(g) Coordinated Filings. If 25 or more demands for arbitration are filed against the Company raising similar claims and counsel for the claimants are the same or coordinated, the parties agree the demands shall be resolved in staged proceedings: the AAA shall administer 10 demands per stage, selected proportionately by each side, with the remainder held in abeyance (and any applicable statutes of limitations tolled) until the preceding stage concludes. A court of competent jurisdiction may enforce this subsection.
21. Governing Law
These Terms are governed by and construed in accordance with the laws of the State of Florida, without regard to conflict of law principles.
22. Severability
If any provision of these Terms is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
23. Entire Agreement
These Terms, together with the Privacy Policy, constitute the entire agreement between you and the Company regarding the Service and supersede all prior agreements and understandings.
24. Assignment
You may not assign or transfer these Terms without our prior written consent. We may assign these Terms without restriction.
25. Modifications
- We may modify these Terms at any time by posting updated Terms on our website.
- Material changes will be communicated via email at least 30 days before taking effect.
- Continued use of the Service after changes take effect constitutes acceptance.
- If you do not agree to a material modification, you may cancel your subscription within 30 days after the modification takes effect without early-termination charges, even during a Commitment Period; the modification will not apply to you during that 30-day window.
26. Electronic Communications & Consent
By creating an account, you consent to receive all communications relating to the Service — including these Terms, the Privacy Policy, billing notices, legal notices, and policy changes — electronically, via email to the address on your account or by posting within the Service. You agree that electronic communications satisfy any legal requirement that a communication be in writing. Keep your email address current; notices sent to the address on file are effective even if you no longer use it.
27. Notices
- Notices to you: via email to the address on your account, effective when sent.
- Notices to us: via email to [email protected] or by mail to the address in Section 29, effective when received.
28. Survival
Sections that by their nature should survive termination survive it, including Sections 3, 5 (amounts due), 11–16, 18 (post-termination terms), and 20–28.
29. Contact
Categorized LLC
1031 Ives Dairy Road, Suite 228-1053, Miami, FL 33179
[email protected]
Last updated: August 7, 2026