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Stripe opens its Atlas program to US-based startups

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

#31

Post by valuearb »

brianwawok wrote: post #23
valuearb wrote: post #21

Earlier quoted context omitted.

Aren't LLC's problematic for offering employee equity options? I've done lots of startups, and you want a structure that makes it easy to put together employee pools, easy to raise funding with, and easy to sell/merge. LLCs are easy to setup, but if they create lots of problems down the road it's not a structure you want.

LLCs are a swim army knife. You can basically do anything, with way less rules and fees. LLCs can totally offer equity. LLC's are easier to sell than a C corp. Plenty of pluses. If you don't want to get VC funded, you should default to LLC.

Of course LLCs can offer employees equity. But it's not simple, and it's not easy.

And its not just VC funding, you should be wary of LLCs if you think it's likely you will need any kind of investors, as typically investors prefer not want to deal with partnership K1s.

If your startup is intended to be profitable quickly, and plans to distribute those profits to the founders, an LLC offers significant tax advantages. If you want to build a big business, it can offer some significant limitations.

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

#32

Post by fiatjaf »

As a foreign developer with a small startup I'm pretty lost with the guides Atlas provides. Is it actually possible to run an Atlas company without ever going to the US and without hiring an US accountant (or PwC, as recommended by Atlas somewhere)?

Also, nowhere in the FAQ it is mentioned if it is possible to close the company and how would that work.

The SVB terms are also scary to me: "SVB will share more details on its pricing once you have an account". What? What if they're charging me a million dollars? I'll only know after the fact?

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

#33

Post by nodesocket »

Silicon Valley bank is frankly awful. I used them for three years but just recently switched over to Capital One Spark Business Checking[1] and love it. Spark is all online, has zero fees unlike SVB (I used to pay $15/mo), and has solid technology again unlike SVB. The account gets setup instantly and your debit card and checks arrive about a week after opening. The Spark iOS mobile app is really solid and allows for check deposits. I highly recommend Spark business checking over SVB.

[1] - https://www.capitalone.com/small-business-bank/

EDIT: Also want to mention, I have two software products and was able to create two bank accounts under the same corporate tax id with Spark, which I was unable to do at SVB. This allows me to isolate income and expenses for each product as each has their own Spark checking account number and transactions under a single unified login.

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

#35

Post by rodionos »

fiatjaf wrote: post #32

As a foreign developer with a small startup I'm pretty lost with the guides Atlas provides. Is it actually possible to run an Atlas company without ever going to the US and without hiring an US accountant (or PwC, as recommended by Atlas somewhere)? Also, nowhere in the FAQ it is mentioned if it is possible to close the company and how would that work. The SVB terms are also scary to me: "SVB will share more details…

Long time SVB customer here. Their international wire is rather expensive. I think they charge $40 per wire, then they deduct $20 from the amount to cover their own correspondent banking fees so you have to always keep the $20 in mind which is painful. On top of that - monthly analysis fees. So... you raised a good question. Make sure you get answers from the program managers.

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

#36

Post by nodesocket »

rubiquity wrote: post #7
patio11 wrote: post #5

Earlier quoted context omitted.

We ship first and then announce dates because down the other path lies disaster, but LLCs are a great way to incorporate many tech businesses, and Atlas aims to incorporate most tech businesses.

No offense but outside of our little HN/YC bubble I think it's the other way around. LLCs seem far more common than Delaware based C Corps for tech companies. For tech startups looking to raise venture capital (a subset of tech companies) a Delaware C Corp is far more common though.

I have a California LLC (sole prop) which is a disregarded entity for tax purposes. LLC is perfect if:

  a) you don't plan on raising investor capital
  b) are a single founder, who just wants liability and corporate benefits and protections
  c) want to easily pass money from the business to personal
Do be aware there is a flat $800 a year California LLC fee even if you don't make a cent (which is unfair and anti-small business), but is what it is.

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

#37

Post by seanmccann »

nodesocket wrote: post #33

Silicon Valley bank is frankly awful. I used them for three years but just recently switched over to Capital One Spark Business Checking[1] and love it. Spark is all online, has zero fees unlike SVB (I used to pay $15/mo), and has solid technology again unlike SVB. The account gets setup instantly and your debit card and checks arrive about a week after opening. The Spark iOS mobile app is really solid and allows for…

SVB's biggest value is in more complicated financial products for startups when traditional banks may not want to work with startups. I've worked with SVB in the past for an AR line that almost no bank would have given us.

If you just need a checking account, then there are lots of cheaper banks with better UIs.

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

#38

Post by serg_chernata »

nodesocket wrote: post #33

Silicon Valley bank is frankly awful. I used them for three years but just recently switched over to Capital One Spark Business Checking[1] and love it. Spark is all online, has zero fees unlike SVB (I used to pay $15/mo), and has solid technology again unlike SVB. The account gets setup instantly and your debit card and checks arrive about a week after opening. The Spark iOS mobile app is really solid and allows for…

This is awesome, thanks for sharing.

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

#39

Post by fiatjaf »

preetish wrote: post #20

Appreciate your response, Patrick. Quick question - is it necessary for a start-up to have payment side to apply for the program? What about a start-up that is pre-revenue?

I've got an invite with just a one-paragraph description of my business and a landing page. But later I started to think that if don't know yet if I will be able to turn a profit from this business then I shouldn't commit myself to incorporating a business in US.

To be frank, I was under the illusion that Stripe Atlas would facilitate things much more than they do. There's too much bureaucracy to be faced even after Atlas.

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