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Stripe opens its Atlas program to US-based startups

stripe.com

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Re: Stripe opens its Atlas program to US-based startups

#101
post #2

We've technically speaking got a lot of US startups on Atlas, but we're happy to have more. Today's announcement also includes a number of other improvements we've made the last few months. I'm happy to answer questions if anyone has them.

We're happy Stripe customers, but our Stripe account is based in an EU country, and our entire volume is in USD. For some Stripe policy reason, we can't transfer USD from Stripe to our EU bank account, it's not allowed. You can only transfer USD to US or Canadian bank accounts. We've been in contact with Stripe support over this, and their recommended solution was to use Atlas and setup a US company and bank account,…

What you're describing isn't unique to Stripe. Pretty much every payment processor works this way. I've looked into a lot of them have yet to find a mainstream one that will deposit USD to a USD account in Europe, HK, SG, etc. (If Adyen does specifically that without big fees then great, but it's news to me.)

What Stripe support is really telling you is that you need a US bank account to avoid the exchange fees. This is more or less correct. As you say, though, they're misguided is in pushing Atlas. It's probably the simplest way for you to get a US bank account, but in many ways it's the worst long-term option. That's because Stripe Atlas creates a C-Corp, which is liable for US corporation taxes and has to file them every year.

You have two other options: 1) Get a US Bank account for your foreign company directly. This is not easy, many banks won't do it, but some will. E.g. I have a SVB account for a foreign corporation (with an EIN) so I can use Stripe in the US for my subscription app.

2) Form a US LLC that's fully owned by your EU corp. A single member LLC can elect to be tax transparent in the US. That means you don't have to pay US corporate taxes as long as you don't have business operations (employees, basically) in the US. With a US LLC it's relatively easy to open a US bank account, though you may need to travel to the US. If you want some expert tax advice for the US component of this setup here's a good guy to ask: http://ustax.bz/

Once you have a US bank account sorted you may need to migrate your Stripe subscriptions. This is not something that Stripe officially supports or will do for you, but after lots of digging with their support I was told that it's possible to do without requiring any re-opt-in from your subscribers. It's just that you need to do the migration yourself by transferring the subscription data. (Details escape me. Please confirm this with them yourself.)

What's the benefit of all this, other than adding a few percent to your gross profits? Well, the market for online business buyers is much stronger in the US than anywhere else. I'm betting on the fact that it'll be significantly easier to sell a business with a US Stripe account than a business with a German / Irish / Hong Kong / Singapore / whatever stripe account.

Of course we're talking a few percent here and a few percent here. Before diving into this rabbit hole I would ask yourself if marketing & sales for a few percent increase might not be less effort than all of the above.

Right, that was a bit long-winded. I don't monitor my replies here much, but feel free to ping me if you have questions.

public @ my_hn_username . org

Re: Stripe opens its Atlas program to US-based startups

#102

Earlier quoted context omitted.

I've always been pleased with Charles Schwab, they've been pro-customer since before it was cool. No fees, even rebate foreign ATM fees, helpful customer service, mobile camera deposit, etc.

Does Schwab have business checking accounts? Their page at http://www.schwab.com/public/schwab/investing/accounts_produ... lists brokerage accounts but nothing about checking accounts. I use Schwab for my primary personal checking account but it seems to me that they don't offer that service to businesses.

They have a bank as well, though now looking can't find mention of business specifically.

Re: Stripe opens its Atlas program to US-based startups

#104
post #2

We've technically speaking got a lot of US startups on Atlas, but we're happy to have more. Today's announcement also includes a number of other improvements we've made the last few months. I'm happy to answer questions if anyone has them.

We're happy Stripe customers, but our Stripe account is based in an EU country, and our entire volume is in USD. For some Stripe policy reason, we can't transfer USD from Stripe to our EU bank account, it's not allowed. You can only transfer USD to US or Canadian bank accounts. We've been in contact with Stripe support over this, and their recommended solution was to use Atlas and setup a US company and bank account,…

I'm going to look into this for you and will follow up by email. (If I find something which is useful for similarly situated companies, I will post what I learn here.)

Re: Stripe opens its Atlas program to US-based startups

#105
post #97

Earlier quoted context omitted.

Could you elaborate on why they are better for VC-backed companies? In what material way?

One specific example is venture debt. If you raise a bunch of money from a whitelisted VC, SVB will lend you money on top of that. Maybe you raise $9 million from Accel Partners in a series B, and SVB lends you another $3 million. You get cash now without much additional due diligence, pay it back, over a few years, and keep more of the equity. Another nice perk is working a banker you can call who understands the ca…

We were profitable with 7 figure revenue in under 2 years and we couldnt get so much as factoring from SVB, even with Fortune 500 invoices.

Any big bank will give great service, there's nothing unique here anymore. They all want your company to succeed as it means more business for them.

Re: Stripe opens its Atlas program to US-based startups

#106

How does the AWS credit work? This, for me, is the biggest selling point of the whole shabang.

Part of AWS Activate. You can get it through various VC's, accelerators, programs like Atlas, or applying directly.

Usually somewhere between $5-25k of credits that will be applied to your bills automatically until they run out.

Azure and GCP both also have similar programs (and both also have very high end packages that are $100k+).

Re: Stripe opens its Atlas program to US-based startups

#107

Earlier quoted context omitted.

We're happy Stripe customers, but our Stripe account is based in an EU country, and our entire volume is in USD. For some Stripe policy reason, we can't transfer USD from Stripe to our EU bank account, it's not allowed. You can only transfer USD to US or Canadian bank accounts. We've been in contact with Stripe support over this, and their recommended solution was to use Atlas and setup a US company and bank account,…

What you're describing isn't unique to Stripe. Pretty much every payment processor works this way. I've looked into a lot of them have yet to find a mainstream one that will deposit USD to a USD account in Europe, HK, SG, etc. (If Adyen does specifically that without big fees then great, but it's news to me.) What Stripe support is really telling you is that you need a US bank account to avoid the exchange fees. This…

To clarify, you managed to sign up for a US stripe account with a foreign corporation?

That's an interesting approach. Thanks for sharing.

Re: Stripe opens its Atlas program to US-based startups

#108

Earlier quoted context omitted.

We're happy Stripe customers, but our Stripe account is based in an EU country, and our entire volume is in USD. For some Stripe policy reason, we can't transfer USD from Stripe to our EU bank account, it's not allowed. You can only transfer USD to US or Canadian bank accounts. We've been in contact with Stripe support over this, and their recommended solution was to use Atlas and setup a US company and bank account,…

You should try Adyen https://www.adyen.com/ It's an European company and it's the main competitor to Stripe on our continent. They are actually a bit older and ten times bigger than Stripe, however they don't advertise much. Disclaimer: I am NOT affiliated with any of these providers.

Adyen does not work with startups.

I contacted their sales and they slammed the door shut immediately. They were actually quite rude and the tone was like an automated email.

Their wording was they only wanted to work with LARGE companies which already processed LARGE volumes.

Unless someone from Adyen wants to clarify?

Re: Stripe opens its Atlas program to US-based startups

#109

Earlier quoted context omitted.

You should try Adyen https://www.adyen.com/ It's an European company and it's the main competitor to Stripe on our continent. They are actually a bit older and ten times bigger than Stripe, however they don't advertise much. Disclaimer: I am NOT affiliated with any of these providers.

Adyen does not work with startups. I contacted their sales and they slammed the door shut immediately. They were actually quite rude and the tone was like an automated email. Their wording was they only wanted to work with LARGE companies which already processed LARGE volumes. Unless someone from Adyen wants to clarify?

Their pricing page says: "The minimum charge is 1,000 transactions a month, so the transaction cost will be at least €100 a month."

Doesn't look startup friendly at all.

Re: Stripe opens its Atlas program to US-based startups

#110

Earlier quoted context omitted.

Adyen does not work with startups. I contacted their sales and they slammed the door shut immediately. They were actually quite rude and the tone was like an automated email. Their wording was they only wanted to work with LARGE companies which already processed LARGE volumes. Unless someone from Adyen wants to clarify?

Their pricing page says: "The minimum charge is 1,000 transactions a month, so the transaction cost will be at least €100 a month." Doesn't look startup friendly at all.

True. Unfortunately, what their website says and what their sales staff say on email are completely different things.
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