Founding an LLC in the United States with Stripe Atlas

As a founder, setting up your startup includes getting through lots of legal and administrative hurdles. Fortunately, services like Stripe Atlas simplify the process, allowing you to establish your business remotely. This post delves into how you can use Stripe Atlas to found your LLC in the United States, focusing on the practical experiences and requirements from a startup founder’s (my) perspective.

How to Choose the Right Business Structure for Your Startup in USA

Why Choose Stripe Atlas?

Stripe Atlas empowers entrepreneurs everywhere to incorporate a U.S. company, set up a U.S. bank account, and obtain a raft of business tools. While this may sound like a pitch, the real value proposition for Stripe Atlas is to facilitate and make less mysterious the process of incorporation of businesses in the United States — something that is generally cumbersome and detailed.

Requirements Before Applying

Before getting started with your application to Stripe Atlas, here are a few pieces of information you’ll need to have in order:

1. Business Name

You have to decide on a legal name for your LLC. This is the name used in all documents and filings.

2. Business Address

You will need an actual address in the U.S. In case you are living outside the U.S., you can use services like “Stable” to gain a virtual U.S. address.

3. Founders’ Information

Put in order the names, addresses, and roles of each founder. This information will be useful for incorporation and tax purposes.

4. Business Description

Write what one does under his or her business. This will help sketch out your business definition both from a legal and when describing the business to third parties.

Cost of Using Stripe Atlas

Setting up an LLC with Stripe Atlas involves a one-time setup fee of $500. This fee covers all necessary expenses related to company formation, including filing fees and registered agent services. From the second year onwards, there is an annual fee of $100 to maintain your LLC.

For more detailed information, you can visit the Stripe Atlas documentation.

Stripe Atlas LLC Taxation

Stripe Atlas LLCs are incorporated in Delaware — a state with very business-friendly laws. Some important details about the way it is taxed could be found below:

• Annual Fee: The annual tax for a Delaware LLC is a flat $300, making it easy to budget.
• No Annual Report: Delaware does not require an LLC to file an annual report as many other states do.

You can find more information on taxes for Stripe Atlas LLCs on the Stripe Atlas Business Taxes page.

Where and How to Pay Delaware LLC Taxes

Paying your Delaware LLC taxes is pretty simple. You can pay the $300 fixed annual tax using a credit card directly through the website of the State of Delaware. Here is how you can do that:

1. Visit the Delaware Franchise Tax payment page.
2. Log in with your business credentials.
3. Follow the instructions to complete your tax payment.

That’s it. With this, you’ve ensured that your LLC remains up-to-date and in compliance with state rules.

Application Process

The application process for founding your LLC with Stripe Atlas is straightforward and entirely remote. Here’s a brief overview:

1. Application Submission: Fill out the application form on the Stripe Atlas website.
2. Review and Approval: Stripe reviews your application and submits the necessary documents to Delaware.
3. Company Formation: In about two weeks, your LLC will normally be formed.
4. EIN Issuance: You will get an Employer Identification Number, essential for tax purposes and opening a bank account.

Setting Up a Mercury Bank Account

One of the important benefits of using Stripe Atlas is the ease of setting up a US bank account via Mercury. Here’s why:

• Fast Setup: Since Stripe has already got all your company and founder information, the setup for a bank account is fast and easy.
• No Additional Verification: You bypass the hefty process of identity verification, a sticky spot for most international founders.
• Immediate Availability: You are allowed to open your bank account at Mercury even before you get your EIN. You can get started in managing your finances without any delay.

Conclusion

Choose Stripe Atlas to establish your LLC in the United States for the most streamlined, cost-effective solution, especially for founders outside the U.S. From getting a business address to opening a bank account, comprehensive service coverage of company formation will let you focus on building your startup.

In our next post, we’ll walk through the usage of Stripe Atlas to help owners of LLCs simplify incorporation procedures. Through these processes, you will know exactly how to get started with the formation of your business and set it on its way to success. Choose wisely and leverage the tools available to you as a founder.