Using a Merchant of Record (MoR) can remove a major tax headache for SaaS companies and digital businesses. An MoR such as Lemon Squeezy or Paddle can take responsibility for collecting and remitting applicable sales tax, VAT, and similar transaction-level taxes on sales processed through its platform. But that does
For international SaaS founders, a US LLC and a Merchant of Record (MoR) solve two completely different problems. A US LLC gives your business a legal entity through which you can operate, sign contracts, hold business assets, maintain accounts, and manage the company. A Merchant of Record, meanwhile, handles the
Yes. Lemon Squeezy handles sales tax and VAT on sales processed through its platform, including sales made by a foreign-owned US LLC, because Lemon Squeezy operates as the Merchant of Record (MoR). For a non-US founder operating a Wyoming, Delaware, New Mexico, or other US LLC, this can significantly simplify
Yes. When Paddle acts as the Merchant of Record for a transaction, it handles applicable US sales-tax responsibilities on that sale, including calculating, collecting, and remitting the tax. This can apply even when the underlying software business is a foreign-owned US LLC. The important qualification is that Paddle must actually
For an international SaaS founder, choosing how to collect payments can have consequences far beyond checkout. A traditional Stripe setup can give you considerable control over payments, billing, customer relationships, and financial data. But it can also leave your company responsible for determining where it must collect and remit sales
For a non-US founder building a SaaS business, choosing a payment platform is about much more than accepting credit cards. You may need to deal with international subscriptions, VAT and sales tax, payment failures, refunds, chargebacks, currencies, payouts, and the practical difficulty of selling to customers in dozens of countries.
Yes, in many cases, you can still benefit from having a US LLC even when a Merchant of Record (MoR) handles your customer transactions. An MoR does not replace your company. It changes who is responsible for certain parts of the sale. This distinction is easy to miss. A Merchant
Yes. A foreign-owned US LLC can generally use a Merchant of Record (MoR) instead of using Stripe as its direct payment processor, provided the MoR supports the company, product, owner location, and countries involved. For international founders, the distinction is important because a Merchant of Record is more than a
Usually, a US LLC does not need to register for sales tax in jurisdictions where a properly structured Merchant of Record (MoR) is legally responsible for the transaction. But using an MoR does not automatically eliminate every tax registration obligation your LLC may have. The key question is not simply
For an international founder selling software, subscriptions, courses, apps, or digital products to customers around the world, accepting payments is only part of the problem. The bigger question is: who is legally responsible for the sale? That is where the difference between a Merchant of Record (MoR) and a payment
A Certificate of Incumbency and a Certificate of Good Standing are often requested together when a US company is dealing with a foreign bank, investor, government authority, or business partner. But they serve very different purposes. The simplest distinction is this: A Certificate of Good Standing shows that the company
A Certificate of Incumbency is a company-issued document that identifies the people currently authorized to act for a US company and, depending on the company and the recipient's requirements, may also identify its members, managers, directors, officers, or ownership interests. It is most commonly requested when a bank, foreign financial
For a foreign bank, government authority, investor, or business partner, proving that a US LLC exists is only part of the verification process. They may also need evidence showing who actually owns the company, how ownership is divided, and who has authority to act on its behalf. This can be
If you own a US LLC from outside America, a foreign bank, payment provider, investor, supplier, or business partner may ask you to prove that the company is active, legally registered, and in good standing. The good news is that you usually do not need to travel to the United
If you own a US LLC or corporation but bank outside the United States, you may eventually be asked to prove that your company documents are genuine. A foreign bank may request a certified copy of your formation document, Certificate of Good Standing, Operating Agreement, or other corporate records, and
Yes. A non-US resident can generally order official documents for a US LLC from outside the United States. In many cases, you do not need to travel to the US or be physically present in the state where your company was formed. The exact process depends on the state, the
