For so long, e-commerce and entrepreneurs have had to compromise cutting off huge chunks from their earnings, just to keep up with their customers in the US. Moreover, are the digital nomads who have become so popular in today’s culture, those of whom make money from many online platforms, yet have to be paid primarily through the states. While the business has been tough due to heavy taxation and innumerable restrictions, this article was made just for such. Remote entrepreneurs can now overcome the limited opportunities, obstacles, restrictions, not to mention the high exchange rate and taxation.
This is primarily through having a bank account in the United States. Having this can save a ton of money especially if there are regular customers based in the states, or the business is simply paid in dollars by US-based partners like Amazon. It is the perfect solution for self-published non-US residents who receive their payments online. To do this, the first step is setting up a business entity, which is where Stripe Atlas comes in. Stripe Atlas has become a savior for most online entrepreneurs and telecommunication nomads who earn a living online by facilitating the incorporation of their small business in the US and making setting up of a business account extremely easy, without the need to fly there.
Before Elaborating in Detail how to open a Stripe Atlas account, here are the benefits of one:
- It could potentially reduce or even avoid US tax in many cases.
- It legitimizes a personal enterprise as a US company in Delaware, U.S.A.
- Faster and easier payment process globally.
- Stripe Atlas also connects with a community of like-minded entrepreneurs, experts, and founders.
- It gives access to resources, training, and support from Amazon Web services and up to $5,000 free AWS promotional credits.
- It only takes a week or two at an affordable price of only $500.
Step 1: Create a Stripe Account
First, an invitation link has to be at one’s access, from which they can now join Stripe Atlas by logging in to their homepage and clicking on the “Get Started” button. Here, the email address and a unique password are created, then an account is automatically set up after confirmation of the email address.
Step 2: Fill in the Stripe Atlas application form
Here, all intricate details about the business enterprise are filled in and based on these details, Stripe Atlas management determines whether the business is fit to be registered under Stripe Atlas. This means precision and accuracy are imperative!
This if filled on a form with 5 parts:
- Product: this is a brief description of the products the enterprise sells as well as the company’s website URL.
- Company: This is the name of the C-Corporation one is looking to incorporate in the US, along with the person’s physical address and contact number. The default 10,000,000 shares should be followed unless when seeking advice from a lawyer.
- Team: These are company personnel and their roles or allocate all shares to personal accounts when no employees are involved.
- Bank account: Click on yes to open an SVB bank account though debit cards and wire transfers are easier.
- Payment: Add payment details.
Always click “Save and Continue” after every step, which goes without saying.
Step 3: Review and Signing of Documents
An email from Stripe Atlas arrives after submission of the application form, after which the entrepreneur has to sign a document that should be thoroughly reviewed.
Step 4: Incorporation, A US bank account, and EIN tax number
About a week later, Stripe Atlas responds with an email informing that the company has been incorporated in the US. A bank account under the company’s name is registered in Silicon Valley Bank, an EIN number for tax purposes is obtained and the business is now registered with the IRS without the cumbersome need for extra documents submission. The SVB account is automatically linked to the stripe account meaning stripe can now be used to process payments to and from. This primarily takes a maximum of two weeks.
Step 5: Running a U.S. company
The company is now up and running! To maintain the account, are ongoing fees, some being
$100 per year for maintaining a Delaware registered agent\ $50 annual filing fee for Delaware A minimum of $175 annual franchise tax for a Delaware C-Corporation Paying a flat 21% US federal corporate tax rate
Stripe Atlas s indeed a dignified solution for non-U.S. entrepreneurs looking to expand their global footing!
Infinity22 is a globally focused e-commerce accounting firm helping online entrepreneurs navigate around the common pitfalls of running a business predominantly on the internet.
Related Tags: Digital Nomad Tax