Stripe Atlas for LLCs • Hacker News Board

Re: Stripe Atlas for LLCs

#91

Post by patio11 » Mon, Apr 30, 2018, 7:00 PM UTC

scollins wrote: post #74

If I'm not a resident of US and didn't visit US in a tax year, would I have to pay US income tax for the LLC?

Owning a US LLC as a non-resident can be complicated; it depends on a variety of circumstances regarding what you do, how your business interacts with the US market, whether you are a US citizen, where you live, etc. You may wish to speak to an accountant.

Re: Stripe Atlas for LLCs

#92

Post by simcop2387 » Mon, Apr 30, 2018, 7:04 PM UTC

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?

It is, I believe patio11 is saying that Stripe does not support setting that up due to the complex tax and other requirements.

Re: Stripe Atlas for LLCs

#93

Post by billconan » Mon, Apr 30, 2018, 7:20 PM UTC

nodesocket wrote: post #61

> Is organized in Delaware, the jurisdiction of choice for many new LLCs. Be aware that if you are "doing business" in California which means you live there you also have to file as a California foreign entity and pay the absurd anti-small business flat tax of $800 a year. This also does not include your state income tax liabilities in California. Just because the LLC is formed in Delaware does not mean you don't hav…

So if I live in CA, it might be better to directly register a CA company to save cost, rather than registering a Delaware company via Strip Atlas?

Re: Stripe Atlas for LLCs

#94

Post by ssijak » Mon, Apr 30, 2018, 7:22 PM UTC

I am not a USA resident, I live in Europe (not EU zone). What would be my tax obligations to the USA if I had LLC formed through Atlas for a purpose of software SAS business (selling software subscriptions worldwide)? I know I would be obliged to pay income taxes in my country, but I don`t know if and what would I need to pay regarding taxes to the USA.

Re: Stripe Atlas for LLCs

#95

Post by leesalminen » Mon, Apr 30, 2018, 7:35 PM UTC

tptacek wrote: post #34

This is all very cool. But: don't operate a multi-partner company in any form, LLC or C-Corp, without formal vesting. Companies without vesting are rigged to explode if any member leaves.

Also, it’s important to keep in mind that a vesting schedule is just a piece of paper at the end of the day. Even if you have one signed and notarized, it’s just a contract. In America, contracts boil down to who has more money to dispute one in court. If you’re a scrappy startup, and one of your founders is wealthy- be careful. They can destroy your business fighting a multi year civil court case.

Re: Stripe Atlas for LLCs

#96

Post by jkaplowitz » Mon, Apr 30, 2018, 7:35 PM UTC

jahewson wrote: post #72

nodesocket wrote: post #68

Earlier quoted context omitted.

Pretty sure you can only be a "disregarded entity" (schedule-c) with a single member LLC. Beyond that is get's more complicated.

Yes, that’s right. Good point!

You can choose to be taxed as a corporation even in that case, but it's usually not worth the tradeoffs.

Re: Stripe Atlas for LLCs

#97

Post by sachitgupta » Mon, Apr 30, 2018, 7:48 PM UTC

@Patio11 - I recently moved from California to Florida and I'm about to open an LLC here.

What are the advantages / disadvantages of having an LLC based in Delaware vs creating one in Florida?

I'd love to use Stripe Atlas - but not sure if I'm making things more complicated than they need to be by opening in Delaware vs Florida.

Re: Stripe Atlas for LLCs

#98

Post by brianwawok » Mon, Apr 30, 2018, 7:49 PM UTC

Nice, this is why I didn't use Atlas despite being offered a beta slot.

I ended up forming a local state LLC. This is still delaware LLC, which seems an extra hoop for (potentially dubious consult your lawyer) gain... but still good to see them going this direction.

That send - end to end to form a LLC in the state of Indiana, it took about a half day and $250. I do not need to file anything in delaware or deal with my company as a foreign entity or any of the extra stuff you would get going this route.

Re: Stripe Atlas for LLCs

#99

Post by dantiberian » Mon, Apr 30, 2018, 7:50 PM UTC

patio11 wrote: post #6

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

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.

Re: Stripe Atlas for LLCs

#100

Post by freehunter » Mon, Apr 30, 2018, 7:52 PM UTC

patio11 wrote: post #36

Shank wrote: post #28

Earlier quoted context omitted.

What bank does the LLC version use?

https://www.azlo.com/

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?