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Stripe Atlas for LLCs

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Re: Stripe Atlas for LLCs

#51

Post by patio11 »

watkajtys wrote: post #44
patio11 wrote: post #6

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

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?

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.)

Re: Stripe Atlas for LLCs

#52

Post by patio11 »

antaviana wrote: post #39
patio11 wrote: post #30

Earlier quoted context omitted.

We do not support LLCs as subsidiary of other companies, for reasons. We do support that use case for C corporations. There are complicated tax issues involved here; an accountant can talk you through them.

Isn’t Google LLC a subsidiary of Alphabet Inc?

Google has some issues that you and I probably do not, and has some lawyers and accountants that you and I probably do not. Thankfully, we don't have to build a product which seemlessly works for this Google; we just have to build one which seemlessly works for the next Google.

Re: Stripe Atlas for LLCs

#53

Post by matthewmcg »

dragonwriter wrote: post #50
patio11 wrote: post #49

Earlier quoted context omitted.

Context for folks who haven't encountered vesting before: vesting is an arrangement where, instead of getting all of your ownership up front, you earn it over time. For example, you might have a fairly common arrangement in Silicon Valley where you get 1/4 of your equity after working for a year and the remaining 3/4 over the next 3 years. This pre-commits to what happens regarding ownership if someone leaves 18 mont…

> Because an LLC is a partnership An LLC is not a partnership. (A limited liability partnership is an LLP.) An LLC is a distinct business structure with some similarities to a corporation, some to a partnership, and some unique features.

He's referring to the fact that, by default, the United States taxes LLCs having more than one member as a partnership. An interest in a partnership is taxed differently than an interest in a corporation (stock).

Re: Stripe Atlas for LLCs

#54

Post by rcdmd »

patio11 wrote: post #6

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

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?

Re: Stripe Atlas for LLCs

#55

Post by icelancer »

mechwarrior wrote: post #20

This looks like a great service! For my state (NY), I am required to register an out of state LLC (a "foreign" LLC [1]) before conducting business in NY. Is this registration or assistance with this registration included? [1] https://www.nolo.com/legal-encyclopedia/how-qualify-foreign-...

This is likewise required in WA.

Re: Stripe Atlas for LLCs

#56

Post by latortuga »

dragonwriter wrote: post #50
patio11 wrote: post #49

Earlier quoted context omitted.

Context for folks who haven't encountered vesting before: vesting is an arrangement where, instead of getting all of your ownership up front, you earn it over time. For example, you might have a fairly common arrangement in Silicon Valley where you get 1/4 of your equity after working for a year and the remaining 3/4 over the next 3 years. This pre-commits to what happens regarding ownership if someone leaves 18 mont…

> Because an LLC is a partnership An LLC is not a partnership. (A limited liability partnership is an LLP.) An LLC is a distinct business structure with some similarities to a corporation, some to a partnership, and some unique features.

It is taxed as a partnership if you don't elect to be taxed as an S corp.

Re: Stripe Atlas for LLCs

#57

Post by icelancer »

sheeshkebab wrote: post #13

It sounded right until $500 part... llc setup cost is $50, bank accounts, stripe accounts are all free, same goes for any “credits” from aws and elsewhere. I understand the desire to turn a profit on this, but that’s kind of overboard, IMO.

>> bank accounts, stripe accounts are all free, same goes for any “credits” from aws and elsewhere

Free only if you don't value your time, I suppose. And you left out the support part from Stripe Atlas and their community, which could easily be worth many multiples of $500.

Re: Stripe Atlas for LLCs

#59

Post by jahewson »

Saaster wrote: post #43
danbtl wrote: post #40

What would be the combined fed+state corporate income tax rate for a Delaware LLC? Quick google says this is 21% (federal) + 8.7% (Delaware). Is my understanding of this correct, that a Delaware LLC pays 29.7% taxes on its profits?

Unless you have presence in Delaware (offices or employees), you don't pay corporate income taxes there just because you formed as Delware LLC or C Corp. You pay a nominal franchise tax, and you're taxed in the other state(s) you operate in.

Yep. An LLC* is not taxed as a corporation unless it chooses to be, by default it is taxed as a sole proprietorship (and so the owner would pay income tax). This is known as a disregarded entity” at the federal level.

Also watch out for franchise taxes - if you live in California it’s $800/yr minimum.

* Edit: a single-member LLC

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