7 ms·

Hiya folks! I worked with the team on this; happy to answer any questions you have.

no1youknowz 9y ago
Would it be possible to use Stripe Atlas to create the LLC, bank account etc and use Stripe normally for handling the payments side for the subscriptions. However, if a marketplace came with the application. To use a 3rd party for all that comes with it. IOW, not wanting to use Stripe Connect for various reasons that make sense to the business.
- patio11 9y ago
  You're welcome to have your company do business with anyone you wish it to do business with. We do not obligate you to use any Stripe product; we feel like we should always have to earn your business. (We in fact go further than that; Atlas actively goes out of our way to help our companies take payments outside of Stripe, for example getting paperwork together to e.g. publish apps on the App Store.)
  - no1youknowz 9y ago
    That sounds great. I will definitely be following up very soon! Many thanks for taking the time to respond.
foobaw 9y ago
Will there be a way for a C-Corp to change into an LLC?
- patio11 9y ago
  There's a great and very common use case for LLC to C corp, so we prioritized building that. I'd love to hear what your use case is for the other way around; if it is something which creates a lot of value for a lot of founders, we'll certainly consider supporting it in the future. Speaking broadly: You can always work with lawyers/accountants to see about the feasibility of converting your C corp into an LLC. We just haven't worked to specifically enable it in the fashion that we attempted to smooth out LLC-to-C-corp.
  - nzoschke 9y ago
    I'll add another vote for this. My use case is that I used Atlas to incorporate quickly -- which was lovely -- but the business is turning out to be a solo venture and the C Corp is overkill. The real user need is a way to reduce business operations time and cost for a small biz.
- lfittl 9y ago
  If you're primarily looking for pass-through taxation it might also be worth looking at electing your C-Corp to be treated as an S-Corp: https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations https://www.irs.gov/businesses/small-businesses-self-employe... (not a tax advisor / CPA, talk to one for actual specifics)
freehunter 9y ago
Is there a way for businesses that are already registered corporations not using Atlas to get some of the other benefits like tax help, issuing stock, the expert help, etc?
- patio11 9y ago
  We do not at present have this available, but we’re quite aware of many people wanting to do that, and we want to support it if we can figure out a way to do it fantastically.
  - sampl 9y ago
    Unlike C-Corps, incorporation for LLCs is trivial. The real value prop for Atlas is everything that comes after! I just did my own LLC in MI, too—two hours and $50.
Shank 9y ago
What bank does the LLC version use?
- patio11 9y ago
  https://www.azlo.com/ https://www.azlo.com/
  - zrail 9y ago
    Interesting! I like their pitch.
  - nodesocket 9y ago
    Azlo.com looks nice. I got fed up with Silicon Valley Bank (awful) a few years back and switched to Capital One Spark Business[1] which is great. However they have "temporary" halted new signups which makes me a bit nervous about their long-term plans. [1] https://www.capitalone.com/small-business-bank/ https://www.capitalone.com/small-business-bank/
  - freehunter 9y ago
    This is in no way a criticism of anything and isn't directed at Stripe or any employee, just an honest question to the general HN community: How does Azlo make money? If I'm going to trust my accounts anywhere, I like to know at least something about their business operations. Azlo is completely fee-free according to their FAQ. They also say they require zero minimum balance and have no ATM fees at 55,000 partner ATMs nationwide. That raises some serious red flags to me. Either they make money from fees or they make money on the interest of your minimum balance, but somehow they have to make money. Of course they're low overhead with no branches and no owned ATMs, but they're not cost-less. What's the catch? Are they going out of business when the VC/Partner money dries up, or are they aiming to get you hooked and then jack up fees afterwards or what's the deal?
    - leesalminen 9y ago
      I’d always thought that a bank’s primary revenue source was from loans. Banks are able to actually write more loans (and charge interest) than cash in the bank [0]. Profit ensues. [0] https://en.m.wikipedia.org/wiki/Fractional-reserve_banking https://en.m.wikipedia.org/wiki/Fractional-reserve_banking
watkajtys 9y ago
Can you apply for atlas if you already have a stripe account in use? Or can a new entity be linked to an existing account?
- patio11 9y ago
  You can absolutely apply to Atlas if you already have a Stripe account, and (without interrupting use of that account) can use your new Atlas company as the owner of the account and take payouts from it into your own bank account. (It's under Business Details in your Stripe Dashboard; same process as usual.)
rcdmd 9y ago
Wow, this is great! I want to jump in but need to know more about the tax/expense and legal consequences of forming an LLC in Delaware versus my home state for my mISV (for anyone reading this who doesn't read Patrick's blog, micro-independent software vendor). What do we have to look out for?
SneakerXZ 9y ago
Hi patio11, this is really great. It would be awesome to have some resources for EU citizens, mainly how it is with taxes and where I tax what and how.
dantiberian 9y ago
I know you’re not a lawyer/accountant, but what kinds of implications does signing up for this have on someone who doesn’t live in the US? I’m concerned about all of the secondary and tertiary effects (like FATCA?) of having a business in the US and living in NZ.
- jwr 8y ago
  I'd say: a) if you are a US citizen, then FATCA and FBAR already apply to you, and you pay your personal income taxes on your worldwide income anyway, b) if you are not a US citizen, then I'd rather carefully consider the legal implications: your company can now easily be sued in the US, where a single lawsuit can bankrupt you. I think (b) in particular is not considered by many who look at Stripe Atlas. I consider it a tremendous risk.
kentt 9y ago
I appreciate the advice you've given through your blog and podcast. Thanks for taking the time to create those things. They've been inspiring. I'm wonder if a US LLC would be better for me? I'm a mISV in Canada. I use Stripe & PayPal and make almost enough to live on. I have a US bank account but Canadian everything else (sole proprietorship, business license, tax id, citizenship, etc.). I don't plan on ever being funded, selling the business, taking on partners or making more than a 150k/yr.
- veesahni 8y ago
  A Canadian sole proprietorship is about as simple as it gets, since you can file taxes on your T1 and business income just passes through to you. Stripe can also transfer USD straight to a USD account at a Canadian bank. Any kind of corporation (US or Canadian) is much more effort, both from legal and accounting perspectives. It's worth it if you need legal protections a corporation gives you or care for some of the tax advantages. But it comes at the cost of extra effort in managing the complexities if a corporation.
- uiri 8y ago
  US LLC has... interesting interactions with Canadian tax law and the US-Canada tax treaty. Even if it is formed in the US, if management and control are in Canada, it may be considered a Canadian corporation. Canadian-controlled private corporation is an advantageous tax status you'd miss out on with a US entity. Bottom line, see a Canadian tax accountant.
4ydx 8y ago
I am considering starting an LLC but I live and work in Japan. Do you know somebody who might be able to help me understand what my options are in terms of tax implications (the interaction of having income in both places)? This will be a sole proprietorship.
- patio11 8y ago
  We should chat! My email is my username at stripe.com

Would it be possible to use Stripe Atlas to create the LLC, bank account etc and use Stripe normally for handling the payments side for the subscriptions. However, if a marketplace came with the application. To use a 3rd party for all that comes with it. IOW, not wanting to use Stripe Connect for various reasons that make sense to the business.

patio11 9y ago
You're welcome to have your company do business with anyone you wish it to do business with. We do not obligate you to use any Stripe product; we feel like we should always have to earn your business. (We in fact go further than that; Atlas actively goes out of our way to help our companies take payments outside of Stripe, for example getting paperwork together to e.g. publish apps on the App Store.)
- no1youknowz 9y ago
  That sounds great. I will definitely be following up very soon! Many thanks for taking the time to respond.

foobaw 9y ago

Will there be a way for a C-Corp to change into an LLC?

patio11 9y ago
There's a great and very common use case for LLC to C corp, so we prioritized building that. I'd love to hear what your use case is for the other way around; if it is something which creates a lot of value for a lot of founders, we'll certainly consider supporting it in the future. Speaking broadly: You can always work with lawyers/accountants to see about the feasibility of converting your C corp into an LLC. We just haven't worked to specifically enable it in the fashion that we attempted to smooth out LLC-to-C-corp.
- nzoschke 9y ago
  I'll add another vote for this. My use case is that I used Atlas to incorporate quickly -- which was lovely -- but the business is turning out to be a solo venture and the C Corp is overkill. The real user need is a way to reduce business operations time and cost for a small biz.
lfittl 9y ago
If you're primarily looking for pass-through taxation it might also be worth looking at electing your C-Corp to be treated as an S-Corp: https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations https://www.irs.gov/businesses/small-businesses-self-employe... (not a tax advisor / CPA, talk to one for actual specifics)

freehunter 9y ago

Is there a way for businesses that are already registered corporations not using Atlas to get some of the other benefits like tax help, issuing stock, the expert help, etc?

patio11 9y ago
We do not at present have this available, but we’re quite aware of many people wanting to do that, and we want to support it if we can figure out a way to do it fantastically.
- sampl 9y ago
  Unlike C-Corps, incorporation for LLCs is trivial. The real value prop for Atlas is everything that comes after! I just did my own LLC in MI, too—two hours and $50.

Shank 9y ago

What bank does the LLC version use?

patio11 9y ago
https://www.azlo.com/ https://www.azlo.com/
- zrail 9y ago
  Interesting! I like their pitch.
- nodesocket 9y ago
  Azlo.com looks nice. I got fed up with Silicon Valley Bank (awful) a few years back and switched to Capital One Spark Business[1] which is great. However they have "temporary" halted new signups which makes me a bit nervous about their long-term plans. [1] https://www.capitalone.com/small-business-bank/ https://www.capitalone.com/small-business-bank/
- freehunter 9y ago
  This is in no way a criticism of anything and isn't directed at Stripe or any employee, just an honest question to the general HN community: How does Azlo make money? If I'm going to trust my accounts anywhere, I like to know at least something about their business operations. Azlo is completely fee-free according to their FAQ. They also say they require zero minimum balance and have no ATM fees at 55,000 partner ATMs nationwide. That raises some serious red flags to me. Either they make money from fees or they make money on the interest of your minimum balance, but somehow they have to make money. Of course they're low overhead with no branches and no owned ATMs, but they're not cost-less. What's the catch? Are they going out of business when the VC/Partner money dries up, or are they aiming to get you hooked and then jack up fees afterwards or what's the deal?
  - leesalminen 9y ago
    I’d always thought that a bank’s primary revenue source was from loans. Banks are able to actually write more loans (and charge interest) than cash in the bank [0]. Profit ensues. [0] https://en.m.wikipedia.org/wiki/Fractional-reserve_banking https://en.m.wikipedia.org/wiki/Fractional-reserve_banking

watkajtys 9y ago

Can you apply for atlas if you already have a stripe account in use? Or can a new entity be linked to an existing account?

patio11 9y ago
You can absolutely apply to Atlas if you already have a Stripe account, and (without interrupting use of that account) can use your new Atlas company as the owner of the account and take payouts from it into your own bank account. (It's under Business Details in your Stripe Dashboard; same process as usual.)

rcdmd 9y ago

Wow, this is great! I want to jump in but need to know more about the tax/expense and legal consequences of forming an LLC in Delaware versus my home state for my mISV (for anyone reading this who doesn't read Patrick's blog, micro-independent software vendor). What do we have to look out for?

SneakerXZ 9y ago

Hi patio11, this is really great. It would be awesome to have some resources for EU citizens, mainly how it is with taxes and where I tax what and how.

dantiberian 9y ago

I know you’re not a lawyer/accountant, but what kinds of implications does signing up for this have on someone who doesn’t live in the US? I’m concerned about all of the secondary and tertiary effects (like FATCA?) of having a business in the US and living in NZ.

jwr 8y ago
I'd say: a) if you are a US citizen, then FATCA and FBAR already apply to you, and you pay your personal income taxes on your worldwide income anyway, b) if you are not a US citizen, then I'd rather carefully consider the legal implications: your company can now easily be sued in the US, where a single lawsuit can bankrupt you. I think (b) in particular is not considered by many who look at Stripe Atlas. I consider it a tremendous risk.

kentt 9y ago

I appreciate the advice you've given through your blog and podcast. Thanks for taking the time to create those things. They've been inspiring. I'm wonder if a US LLC would be better for me? I'm a mISV in Canada. I use Stripe & PayPal and make almost enough to live on. I have a US bank account but Canadian everything else (sole proprietorship, business license, tax id, citizenship, etc.). I don't plan on ever being funded, selling the business, taking on partners or making more than a 150k/yr.

veesahni 8y ago
A Canadian sole proprietorship is about as simple as it gets, since you can file taxes on your T1 and business income just passes through to you. Stripe can also transfer USD straight to a USD account at a Canadian bank. Any kind of corporation (US or Canadian) is much more effort, both from legal and accounting perspectives. It's worth it if you need legal protections a corporation gives you or care for some of the tax advantages. But it comes at the cost of extra effort in managing the complexities if a corporation.
uiri 8y ago
US LLC has... interesting interactions with Canadian tax law and the US-Canada tax treaty. Even if it is formed in the US, if management and control are in Canada, it may be considered a Canadian corporation. Canadian-controlled private corporation is an advantageous tax status you'd miss out on with a US entity. Bottom line, see a Canadian tax accountant.

4ydx 8y ago

I am considering starting an LLC but I live and work in Japan. Do you know somebody who might be able to help me understand what my options are in terms of tax implications (the interaction of having income in both places)? This will be a sole proprietorship.

patio11 8y ago
We should chat! My email is my username at stripe.com