Nobody mentioned the shares based tax implications of Delaware Corps. Surprise! You owe them $50k!
Stripe Atlas
171–180 of 402 posts
Re: Stripe Atlas
#172Earlier quoted context omitted.
With regards to adult content, the perception is that chargebacks would be higher, but in reality this is mostly a relic of the late 90's when credit cards were first accepted online. Porn pioneered the infinite continuity ("recurring subscriptions until you die") that is incredibly widespread nowadays. At the moment, there are few non-merchant account ways to legally accept payments for adult content. They include s…
Are there any non-Stripe processors you'd recommend for adult content?
ccbill handled it for our adult product
Re: Stripe Atlas
#173Earlier quoted context omitted.
You must be a C Corp to accept VC investment. It is expensive and time consuming to go from LLC to C Corp. Maybe you mean S Corp which has some similarities with LLC but it is easy to switch to C Corp if you need to. I generally agree they should not offer C Corp though because the paperwork is extremely complicated and cannot be done correctly by an internet form at least in my experience. EDIT: I should have said v…
This is wrong. You do not have to be a C Corp to accept investments. Not sure where or how this idea got started. There are even advantages to LLCs that some savvy investors prefer as a matter of fact. It more comes down to the source of the actual money in the fund than the fund itself. Also they are quite easy to setup. Requiring a simple Internet form and a few checks written here and there. Additionally it is ext…
> Whether you switch it from "investments" to "VC investments"
Lol! I noticed I made a typo (missing VC) within one minute of submitting and fixed it. Wow you are fast.
Re: Stripe Atlas
#174This is cool, but they should not offer a C corp as the default choice. An LLC should be the default for the vast majority of entrepreneurs. The only reason VC-funded companies are C corps is becaused VC LPs don't want to be hit with taxable income (which would flow through the VC to them). An LLC is much better for a variety of reasons: - Flow through taxation = you only get taxed once. With a C corp you pay corpora…
Thanks for the feedback! We agree that C Corps may not be for every company: we're looking at support for other company structures, including LLCs ( https://stripe.com/atlas/faq#Can-Stripe-help-me-set-up-a-dif... ). To kick off the beta, we found that the C Corp was the best place to start based on what entrepreneurs in emerging markets were already looking to do. We go into much more detail about C Corps and their t…
For tax purposes it would be best to request to be taxed as an S-Corp. You can then incorporate as an LLC or a corporation.
Re: Stripe Atlas
#175Earlier quoted context omitted.
I'm in Colorado and it costs only $50 to file for an LLC online. Where is it costing you $250?
- State filing fees = $50 - Processing fees(paying someone to file for you, obtain EIN etc.) = $50 - Registered agent service = $100/year - EIN for foreigners = $50
Got it. I wasn't thinking for someone outside the state or country.
Re: Stripe Atlas
#176Nobody mentioned the shares based tax implications of Delaware Corps. Surprise! You owe them $50k!
What gotchas are you referring to? I thought Delaware was the shell corp state of choice because of no taxes and laws that favor businesses.
Re: Stripe Atlas
#177Earlier quoted context omitted.
Thanks for the feedback! We agree that C Corps may not be for every company: we're looking at support for other company structures, including LLCs ( https://stripe.com/atlas/faq#Can-Stripe-help-me-set-up-a-dif... ). To kick off the beta, we found that the C Corp was the best place to start based on what entrepreneurs in emerging markets were already looking to do. We go into much more detail about C Corps and their t…
For tax purposes it would be best to request to be taxed as an S-Corp. You can then incorporate as an LLC or a corporation.
This usually assumes a larger net income for the business - I believe when you are just starting out LLC makes the most sense then you can transits ion to S-Corp once renvues hit a few million
Re: Stripe Atlas
#178they aim to help global community of entrepreneurs but it is tailored for the specific silicon-valley community.
- c-corp only - investors in the valley work with it mostly. even though for MOST of the businesses s-corp or LLC will be better.
- silicon valley bank - is very popular in the valley, but has limited support if you're outside as opposed to more popular banks. (transfer fees, integrations with other providers like payroll etc)
i like the idea, but they have to think outside of their valley scope to really help people worldwide.
Re: Stripe Atlas
#179Earlier quoted context omitted.
> You must be a C Corp to accept investment. This is not true. You can sell membership interest in an LLC the same way you can sell stock in a C corp. And in my experience it's fairly simple to go LLC to C. I didn't get confused with S corps.
You as an initial member can sell membership interest, but reselling that interest can be difficult or impossible for a VC. They're looking for future liquidity, and an LLC interest just doesn't have the same statutory guarantees that a C corp share has.
That's not really true either. If the operating agreement permits reselling then you can resell. A C corp's operating agreement can also restrict selling to the point that it becomes impossible - if that's what's wanted. It's common for investors to want such restrictions because they don't want to find that the other investors in the business have changed without their agreement, or that one of the founders has sold a share to an investor that they don't approve of.
Re: Stripe Atlas
#180Nobody mentioned the shares based tax implications of Delaware Corps. Surprise! You owe them $50k!
There is an alternative way to calculate tax that is not based on number of shares. Not going to lie, I about had a heart attack when I got my first annual letter from Delaware. I think it's a right of passage.