Stripe Atlas Beginner's Guide: All you need to know about Stripe Atlas

As an entrepreneur, establishing a new company or expanding into a foreign market can be exciting and daunting. There are countless legal hurdles, complicated documentation requirements, and complex banking regulations that make it difficult for the average entrepreneur to soar. This can quickly sap the entrepreneurial spirit and make it easy to give up before even getting started.

But what if there was a solution that could help you navigate these challenges and headaches? That's where Stripe Atlas comes in. In this Beginner's Guide to Stripe Atlas, we'll cover everything you need to know about this all-in-one toolkit designed to help entrepreneurs easily create and run a business anywhere in the world – including in the US, UK, and beyond. Let's dive in!

Brief History of Stripe Atlas

Stripe Atlas kick started as a response to the many challenges encountered by startups outside of traditional tech hubs. Hence, Stripe's founders, Patrick Collison and John Collison, launched Stripe Atlas in 2016.

While Stripe, Stripe Atlas's parent company is an online payment processing company like Flutterwave, Stripe Atlas is an all-in-one platform designed specifically to help entrepreneurs around the world gain access to the global economy.

It streamlines the process of company formation, compliance with legal standards, and financial operations for international founders, which makes it easy and simple for entrepreneurs from all around the world to create a business.

Stripe Atlas has its headquarters situated in San Francisco, California, USA, and has expanded its functions and features significantly since its launch. By facilitating startup growth globally, Stripe Atlas has become increasingly impactful, as it continues to serve the needs of diverse businesses.

What Stripe Atlas Means and What They Do

Understanding the significance of Stripe Atlas and its operational scope is crucial for entrepreneurs navigating the complex nature of global business expansion. For instance, many online businesses that cater to US customers or transact in US dollars, face significant taxation challenges without a US-based business account. This tax burden can amount to a quarter of the total earnings. That’s if your businesses can even scale through the numerous obstacles, restrictions and limitations of opportunities.

The US dollar is one of the world-accepted currency rates of trade, but with the limitations involved, the international potential of scaling up your business is greatly limited. In this regard, Stripe Atlas emerges as a solution to these hurdles, streamlining the process of establishing a US business presence.

Generally, one of the best solutions for expanding your business or becoming a global business as a startup or entrepreneur is to create a US bank account. However, the whole process is a complex and difficult one. One way you can pull it off is by creating or incorporating a US business and then creating a US bank account. These and more are exactly what Stripe Atlas does for you; saving you the stress of the entire process. In detail, Stripe Atlas will: 

1. Create or incorporate a US business in Delaware for your company.
2. Register your company for a US employer identification number (EIN).
3. Get you a US bank account and a debit card.
4. Set up an account from Stripe to receive and send money globally.
5. Give you access to Stripe's community of entrepreneurs and fellow founders.
6. Grant you access to numerous resources, pieces of training and support from Stripe Atlas and Amazon Web services.

With a straightforward process requiring minimal steps, completion of a form, and an initial payment of $500, entrepreneurs can unlock the doors to a US-based business, regardless of their physical location. This comprehensive service ensures accurate filing and processing of legal and tax documents, empowering entrepreneurs to proudly own and operate a US-based company with ease.

What are the Pros of Stripe Atlas?

A closer look into Stripe Atlas will not be complete without an unbiased review of the pros.

1. The ease of global accessibility: Stripe Atlas aids founders and entrepreneurs from all over the world to establish a US-based business no matter their location, therefore breaking geographical, legal and financial limitations. Stripe Atlas takes care of the filing, legal issues and whatnot so that all you have to do is create an account, fill out a form and get going on. The ease at which your accessibility is set up makes it a big advantage.
2. Access to resources and networking opportunities: Signing up with Stripe Atlas gives entrepreneurs access to a huge network of mentors, investors and fellow startup founders, making collaboration and support available to all. This feature is separate from its huge resource of educational materials on every topic that concerns business (from marketing to legal matters of business). With its big bank of resources, no member goes home empty.
3. Access to Stripe products and payment processing:Along with other US-based businesses, entrepreneurs and founders get access to Stripe's core services. Stripe, the parent company is an online payment processor, and as expected, its main services are made available to every business registered through it. This means, as an entrepreneur you get to enjoy smooth business integration with banking services and experience easy and fast financial transactions. It’s a skyrocketing advantage that increases productivity.
4. Stripe Atlas' business setup includes tax features and registration: Another benefit that Stripe Atlas offers to entrepreneurs who have their US-based business through it, is access to registration and processing of employer identification number (EID) and 83(b) election filing. This is important as it can help save a lot of money on taxes.

What are the Cons of Stripe Atlas? 

As they say, everything with an advantage has a disadvantage, but what is important is that the disadvantage must not be greater than its advantage. Let’s look at the cons.

1. Limited Business Structures and Location: The major disadvantage of Stripe Atlas is the limitation of the business structure offered to entrepreneurs and founders. You can only form a C Corporation or Limited Liability Company (LLC), and you can only incorporate it in Delaware state. While that is the state-advised for most e-commerce companies, not all founders or entrepreneurs want to incorporate their business there, and unfortunately, that is the only choice offered by Stripe Atlas, for now. Also for founders and entrepreneurs outside the US, the only structure available is the C Corporation, the Limited Liability Company structure is not available to them, but only to people in the US under Stripe Atlas, another major limitation.
2. Financial Costs: Setting up a US-based business and bank account on Stripe Atlas requires a one-time payment of $500 which covers the costs of formation and one year of their registered agent service. After one year, to keep using their registered agent service, which is not a choice, hence you need to keep paying a yearly amount of $100. This is apart from the taxes and other costs that are charged for running your business for a year.

The Prices and Costs of Using Stripe Atlas 

As mentioned earlier, to set up a US-based business and US account on Stripe Atlas, you need to make an initial payment of $500. This initial payment covers the following costs:

1. One-year subscription to the Registered Agent service
2. An EIN (Employer Identification Number) from the IRS (Internal Revenue Service)
3. Delaware state business formation filing fee
4. An Operating Agreement

After the first year, to keep using the registered agent service of Stripe Atlas, you need to make a yearly payment of $100, although it gets refunded if for some reason Stripe Atlas cannot support your business.

How to Get Started On Stripe Atlas

There are two major ways to get started on Stripe Atlas. You either get started by registering through an invitation link or sign up through the official website. To sign up directly, go to the website of Stripe Atlas or just click the link (https://stripe.com/atlas), and click on the 'Start your Company' button. You will receive a form. Fill up the form by providing details about your business, your partners, activities and other information required.

This information gets processed and analyzed by Stripe, and if you are approved, you get an invitation link to join Stripe Atlas. A click on the invite link shows some extra information (including the company's name and structure) to be filled and submitted to complete your Stripe account setup. When this step is concluded, you will receive some necessary legal documents from Stripe Atlas, which you are to review and finally sign. 

The other way of registering through an invitation is the same as the above, except this time you don't wait for validation, instead simply input your details and create the account all at once.

Documents Required to Set Up a Stripe Atlas Account

The following documents are required to open a US-based business on Stripe Atlas:

1. A valid government-issued identification that has a photo attached. If the business founder is more than one, a valid government ID must be provided for each of the founders of the business.
2. Detailed information about your business such as name, structure and industry of the business. Also, you will need to share the founders’ percentage, stakeholders' and officers’ roles in the business, company number etc.
3. Your Employer Identification Number (EID) which you will get from Stripe or your Social Security Number (SSN).

Need Help Connecting your Business to Stripe Atlas?

if so, Foundeck is what you need to achieve this goal. Contact Foundeck today to connect your business with Stripe Atlas.

Countries That Are Stripe Supports

Currently, Stripe is available in 46 countries all over the world. It is however expanding and is working on being available in other parts of the world.

Countries where Stripe is Directly Supported

What are the best Alternatives to Stripe Atlas?

1. Incfile also known as Bizee

Considered one of the very best by many business owners, Incfile was established in 2004, in Houston. It was established to make it easier for entrepreneurs to have their business incorporated, after one of the founders, Nick Siha had a frustrating and expensive experience trying to form a Limited Liability Company. The platform is particularly famous for its silver package that offers a $0 filing fee apart from the state filing fees.

2. Doola

One of the most expensive platforms offering incorporation services, Doola is also one of the youngest. Founded in 2020 by Arjun Mahadevan, it was made to become a dark horse in the incorporating business. It compensates for the price with its ease as it is very easy and simple to use. Its most expensive offer comes from post-incorporation year charges.

3. LegalZoom

Popularly known for its amazing offer being a free Wix-powered website, LegalZoom is one of the most popular platforms that rival Stripe Atlas. Apart from the incorporation of Limited Liability Companies and C Corporations, LegalZoom also offers S Corporation incorporation and was founded in 2001.

4. ZenBusiness

ZenBusiness being one of the few platforms that offer a $0 starter plan, stands on par with Bizee. It has a very smooth incorporation process, and with additional fees, you can sign up for more services such as domain name and business website. Apart from its starter package, it also offers a pro package of $199 annually billing and a premium package billed annually at $349, both amounts include state filing fees.

5. Clerky

Bordering more on the fundraising aspect, Clerky is another platform that is an alternative to Stripe Atlas. Some of its services which are all free, include annual report filing services, yearly registered agent and access to an Employer Identification Number (EIN).

Stripe Atlas Customer Support Service

One of the most notable features of Stripe Atlas worth mentioning in this detailed beginner's guide to Stripe Atlas is its customer service. When you sign up for Stripe Atlas, the level of customer support you get is immense. First, you are granted immediate access to the Atlas community of mentors, investors and other founders, on account sign-up. Secondly, Stripe Atlas provides 24/7 customer service on standby that you can contact with the 'contact' button on their website.

This is to provide answers to any of your queries, or assistance if you are stuck. This means you won't go through the process of building your business alone. Additionally, their email address is also fully functional with swift response. In fact, when you have an inquiry or a complaint to make, one of the best ways to get a quick response is just to send an email directly to the company asking your question or stating your grievance.

Frequently Asked Questions on Stripe Atlas 

What is the difference between Stripe and Stripe Atlas?

Stripe is the parent company of Stripe Atlas and a payment processing technology, while Stripe Atlas is a platform under Stripe which provides tools and resources for entrepreneurs to start and scale their online businesses, employing services like incorporation, banking, and legal support.

What are the benefits of Stripe Atlas?

Stripe Atlas comes with several benefits, a few being: The ease of global accessibility, access to networking opportunities and a bank of scale-up resources. In addition, access to Stripe business setup including tax features and registration, and finally access to Stripe products and payment processing.

When Did Stripe Launch Stripe Atlas?

Stripe Atlas is a company founded by Stripe and was established in 2016 by Patrick Collison and John Collison.

What are the disadvantages of Stripe Atlas?

Stripe Atlas has just a few disadvantages, which include limited business structure availability and limited locations offered to entrepreneurs and founders outside the US.

Conclusion

If you are contemplating whether or not to connect your business to Stripe Atlas, it’s vital to state that it is a platform hugely invested in by entrepreneurs for the success of their businesses. Reviews show that the platform is easy to use, very good at what they do, competitively priced, has incredible customer service and a very efficient transaction processing system. Additionally, being directly connected with the parent company Stripe, gives them room to offer lots of discounted offers for Stripe partners.

Overall, this beginner guide gives you a detailed insight into the platform, and adding that to what user’s review reveals that, if you're looking for an awesome vehicle to move your business to the next stage; the global stage, Stripe Atlas is a horse you might want to hedge your bets on. Need help connecting your business to Stripe Atlas? Foundeck can assist you to achieve this goal.