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Our experience with Stripe Atlas (2017)

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Re: Our experience with Stripe Atlas (2017)

#71

Post by mmckelvy »

ohitsdom wrote: post #10

My biggest hesitation with Atlas is the C corp part. I don't want funding, I want to start small and bootstrap. For this, LLCs seem best so you don't get taxed twice. My most optimistic first year in revenue would be $30-60k, still well in side business territory. Am I missing something, or is Atlas not for me?

Keep in mind, business entities and tax classifications are different things. You can be an LLC and then elect to be taxed as a C Corp. Usually this doesn't make sense unless you need to prevent income from passing through to the owners. Apart from that, everything you can do with a C Corp you can do with an LLC (issue options, split equity, take investments, etc.), just without that double tax and administrative overhead.

In this day and age, there are very few cases where forming a corporation, taxed as a C Corp is an ideal structure for most businesses starting out.

Re: Our experience with Stripe Atlas (2017)

#72

Post by mmckelvy »

Setting up a business entity is actually not that difficult. You can do it yourself.

In California for instance, you can set up an LLC in about 5 minutes for $70. It requires filing out one form with the name of your business and the owners and mailing it in (takes a few weeks to process). In many other states you can do this online.

Once you have your Articles of Organization, you can take them to any bank and open a bank account with a credit card in about 30 minutes.

Re: Our experience with Stripe Atlas (2017)

#73

Post by patio11 »

sjroot wrote: post #14
ohitsdom wrote: post #10

My biggest hesitation with Atlas is the C corp part. I don't want funding, I want to start small and bootstrap. For this, LLCs seem best so you don't get taxed twice. My most optimistic first year in revenue would be $30-60k, still well in side business territory. Am I missing something, or is Atlas not for me?

I am replying to this because it is a question I have as well. Stripe employees - I know the Atlas page discusses the reasoning behind a C corp a bit, but I think it would be beneficial to elaborate on why it is preferable over an LLC. It’s also worth noting that the Atlas website mentions support for LLCs and other business types later down the line. Any timeline on this? As I imagine the OP of this comment is, I am…

I work on Stripe Atlas. Prior to that, I ran a few software businesses, all as LLCs.

A rule I had in my business was “Don’t talk about timelines until you’re ready to ship, because they only slip, and then people are sad.” I broke the rule several times, and regretted it every time. Stripe has the same rule, but is disciplined about keeping it.

I have a lot of thoughts on the C corporation vs LLC tradeoffs and while I’d love to put them in an HN comment my top task this week is putting them in a more permanent location.

Re: Our experience with Stripe Atlas (2017)

#74

Post by patio11 »

adamweld wrote: post #24
ohitsdom wrote: post #10

My biggest hesitation with Atlas is the C corp part. I don't want funding, I want to start small and bootstrap. For this, LLCs seem best so you don't get taxed twice. My most optimistic first year in revenue would be $30-60k, still well in side business territory. Am I missing something, or is Atlas not for me?

I was in a similar situation, decided atlas was not for me. You should note as well there's a $30 monthly charge on the bank account unless you keep some large ($25k? don't remember exactly) balance. This is pretty well hidden and was enough to make me keep my LLC and free business bank account (capital one).

One of our banking partners does charge a $25 maintenance fee, waived under a few conditions (including a balance in roughly the range that you quote). We try to be pretty up-front about this; CTRL-F "Ongoing Costs" on https://stripe.com/atlas

We try to work with banking partners to put together an offering which works for the broadest selection of users, across geographies, business models, and personal circumstances. This is a perpetual work-in-progress.

Re: Our experience with Stripe Atlas (2017)

#75

Post by patio11 »

soneca wrote: post #15

My particular pain point is how to have a Stripe account living in an unsupported country (Brazil). Is Stripe Atlas the best solution? I am starting two very modest side business intending to sell to international customers (mostly US+Canada initially). One SaaS and one content membership. Any ideas?

While we'd be happy to have you in Stripe Atlas, we'd also be happy to have you in the live preview for Stripe in Brazil. You can sign up here: https://stripe.com/global#br

Send me an email after doing so (my email address is my HN handle at stripe.com) and I'll talk to the team running it to make sure you get access expeditiously. (Offer open to anyone on HN.)

Re: Our experience with Stripe Atlas (2017)

#76

Post by winslow »

nodesocket wrote: post #28

The biggest complaint I would have is using Silicon Valley Bank. I was a customer for over two years and their web interface is complete garbage and they charged an account service fee each and every month. I switched over to Capital One Spark Business Checking and highly recommend them instead.

I had pinged them about the SV Bank account especially with their high fees compared to my Credit Union and they mentioned that you can immediately close the SV Bank account as use your bank or credit union. [1]

[1] https://twitter.com/atlas/status/901220134328643584

Re: Our experience with Stripe Atlas (2017)

#77

Post by exolymph »

auganov wrote: post #41

Wondering if Atlas gets a lot of money launderers. Incorporating has always been super easy, but most agents wouldn't open a bank account for you. Especially at this price point.

They do KYC. All of this is backed by Silicon Valley Bank, which definitely has a robust compliance department.

Re: Our experience with Stripe Atlas (2017)

#78

Post by ph0rque »

amdavidson wrote: post #62
ph0rque wrote: post #36

I've been contemplating bringing my DE C corp into the Stripe Atlas umbrella. Is it possible to do so and BYOBA (bring your own bank account)?

What advantage do you see in Atlas if you already have the C corp and business account?

Well, the technically-correct (and yet practically-tautological) answer is I want to save time and money doing so. I'll see if that can actually happen.

Re: Our experience with Stripe Atlas (2017)

#79

Post by ph0rque »

patio11 wrote: post #69
ph0rque wrote: post #36

I've been contemplating bringing my DE C corp into the Stripe Atlas umbrella. Is it possible to do so and BYOBA (bring your own bank account)?

We do not support this at present, but are aware that many people want to do it. Would you mind telling me what you’re hoping to get out of doing that, so that I can take that to the team?

Like I replied to a sibling comment, I simply want to save time and money doing so (not having to pay a monthly fee for using a bank would go a long way towards the latter). It does seem like I would be able to save time using Atlas to handle ongoing obligations to run my company, which is why I am interested.

Re: Our experience with Stripe Atlas (2017)

#80

Post by _urga »

patio11 wrote: post #75
soneca wrote: post #15

My particular pain point is how to have a Stripe account living in an unsupported country (Brazil). Is Stripe Atlas the best solution? I am starting two very modest side business intending to sell to international customers (mostly US+Canada initially). One SaaS and one content membership. Any ideas?

While we'd be happy to have you in Stripe Atlas, we'd also be happy to have you in the live preview for Stripe in Brazil. You can sign up here: https://stripe.com/global#br Send me an email after doing so (my email address is my HN handle at stripe.com) and I'll talk to the team running it to make sure you get access expeditiously. (Offer open to anyone on HN.)

Any plans to open Stripe in South Africa?

Would be great to have Stripe in at least one country on the continent!

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