Online payments have become an integral part of modern business, and Stripe is one of the most popular and widely used payment processing services worldwide. However, setting up a Stripe account can be a bit more complicated for non-residents of the United States. In this blog post, we will be discussing how non-residents can set up a US-based Stripe account and the necessary requirements to do so.
In this blog post, we will be going over the steps in detail, providing tips and best practices for non-residents to set up a US-based Stripe account. Whether you are a small business owner or a freelancer, this guide will provide the information you need to get started with Stripe and start accepting payments from customers in the United States.
Why use Stripe as a payment gateway? Here are a few reasons:
Stripe is a popular choice as a payment gateway for a number of reasons:
Ease of use:
Stripe has a user-friendly interface and easy-to-use API that allows businesses to quickly and easily set up and integrate Stripe into their website or app.
Global support:
Stripe supports payments from customers in more than 135 countries and allows businesses to process payments in more than 135 currencies.
Security:
Stripe is PCI-compliant and uses a number of security measures to protect sensitive customer information and prevent fraud.
Customization options:
Stripe allows businesses to customize their checkout process and offers a variety of options for recurring payments, subscriptions, and more.
Advanced features:
Stripe offers a range of advanced features such as the ability to issue refunds, handle disputes, and track payments.
Flexibility:
Stripe can be integrated with a wide range of platforms, including e-commerce platforms, mobile apps, and more.
Access to marketplaces and platforms:
Stripe is integrated with many marketplaces and platforms, such as Shopify, WordPress, and Magento, allowing businesses to easily sell on those platforms.
Strong developer community:
Stripe has a large developer community that creates and shares libraries, plugins, and integrations to make it easier for businesses to use Stripe.
Support:
Stripe provides excellent documentation, guides, and customer support for businesses.
All these features make Stripe an attractive option for businesses of all sizes, from small startups to large enterprises.
Related: 12 Best Stripe Alternatives and Competitors
5 Steps to Setting Up Your US Stripe Account as a Non-Resident
Now that you’re familiar with the advantages of using Stripe, let’s delve into the initial step: setting up a US Stripe account as a Non-Resident, so you can handle USD payments.
Step 01: Form a US company (LLC or C Corp)
The first step in setting up a US Stripe account as a non-resident is to form a US company. This can be done by creating a Limited Liability Company (LLC) or a C Corporation (C Corp). Both of these types of companies are considered legal entities in the United States and will be required to set up a Stripe account.
Creating an LLC or C Corp is a relatively simple process and can be done online in most states. The main difference between the two is that an LLC is considered a “pass-through” entity for tax purposes, while a C Corp is considered a separate entity for tax purposes. The LLC is generally considered to be the simpler of the two, but it’s best to consult with a tax professional or legal advisor to determine which type of company is best for your business.
Once you have formed your US company, you will need to obtain a Federal Tax ID number (also known as an EIN) from the IRS. This number is used to identify your company for tax purposes and is required to set up a Stripe account.
In summary, forming a US company (LLC or C Corp) is the first step in setting up a US Stripe account as a non-resident. This will allow you to legally conduct business in the US and obtain the necessary tax ID number to set up your Stripe account. Be sure to consult with a tax professional or legal advisor to determine which type of company is best for your business.
How Micahguru Formations can help you.
Micahguru Formations is a one-stop shop for launching a business in the United States remotely. We understand that starting a business in a foreign country can be a daunting task, especially when you are not physically present. That is why we are here to help you every step of the way.
Our team of experts has years of experience in helping non-residents navigate the complexities of starting a business in the United States. We offer a wide range of services, including business formation, tax compliance, and ongoing support.
Our business formation services include incorporating your company in the state of your choice, obtaining an EIN, and registering for state taxes. We will also assist you in opening a bank account and obtaining any necessary licenses and permits.
In addition, we offer tax compliance services to ensure that your company is in compliance with all federal and state tax laws. This includes preparing and filing all necessary tax forms and ensuring that you take advantage of any tax incentives available to your business.
We also provide ongoing support to help you navigate the ever-changing landscape of running a business in the United States. This includes assistance with accounting, bookkeeping, and continuous compliance.
At Micahguru Formations, our goal is to make launching a business in the United States as smooth and stress-free as possible. We take care of the tedious paperwork and legal requirements, so you can focus on growing your business.
Step 02: Get a US bank account as a non-resident
One of the most important steps in setting up your US Stripe account as a non-resident is to obtain a US bank account.
This will allow you to easily receive payments from customers and make payments to vendors. Here are a few tips to help you get a US bank account as a non-resident:
- Research the options: Before you apply for a US bank account, it’s important to research the different options available to you. Some banks may have specific requirements for non-residents, such as a US mailing address or a US tax ID number. Be sure to review the requirements and fees associated with each bank before making a decision.
- Provide documentation: To open a US bank account, you will need to provide a variety of documentation. This may include proof of identity, proof of address, and proof of business registration. Be sure to check with the bank for specific documentation requirements.
- Consider an online bank: Some online banks do not require a physical presence and allow you to open an account without a US mailing address. They may also have less strict documentation requirements.
- Use a US-based service provider: If you are having trouble opening a US bank account as a non-resident, consider using a US-based service provider. These companies can help you open a US bank account and provide you with a US mailing address and tax ID number.
- Be prepared for fees: Keep in mind that there may be fees associated with opening and maintaining a US bank account as a non-resident. Be sure to review the fee schedule and factor this into your budget.
Obtaining a US bank account is an essential step in setting up your US Stripe account as a non-resident. By researching your options, providing the necessary documentation, and being prepared for fees, you can ensure that this process goes smoothly.
Step 03: Create a Stripe account through your newly formed US company
Now that you have incorporated your company in the United States and obtained an EIN, it’s time to set up your Stripe account. Stripe is one of the most popular payment processors for online businesses, and for good reason. It’s easy to use, reliable and offers a wide range of features to help you accept payments from customers around the world.
Here are the steps to sign up for a Stripe account through your newly formed US company:
- Go to stripe.com and click on the “Sign Up” button.
- Enter your company name, email address, and password to create your account.
- Next, you’ll need to provide some information about your business, including your EIN, business address, and business website address. Be sure to have these handy before beginning the registration process.
- Next, you’ll need to connect your bank account to Stripe. This is where your payouts from Stripe will be sent.
- Finally, you’ll need to verify your identity. Stripe may ask for additional information such as a government-issued ID or a utility bill.
Once your account is set up and verified, you’ll be able to start accepting payments through Stripe. You can also access a wide range of features such as recurring payments, subscriptions, and fraud detection.
In summary, setting up a Stripe account through your newly formed US company is a simple process that can be completed in just a few steps. By following these steps, you’ll be well on your way to accepting payments from customers around the world.
Step 04: Start accepting payments in USD with your Stripe
Now that you’ve set up your Stripe account and linked it to your bank account, it’s time to start accepting payments in USD. Here’s how:
- Add a payment method to your Stripe account. You can choose from a variety of options, including credit and debit cards, ACH transfers, and more.
- Set up your pricing and products. You’ll need to set the prices for the products or services you plan to sell, and create a list of the items you’ll be offering.
- Create a checkout form. You can use Stripe’s built-in checkout form, or create your own using their API.
- Test your checkout form. Before you start accepting real payments, it’s a good idea to test your checkout form to make sure it’s working correctly.
- Start accepting payments! Once everything is set up and tested, you’re ready to start accepting payments from your customers.
And that’s it! With Stripe, you can easily start accepting payments in USD as a non-resident. It’s a great solution for businesses of all sizes, and offers a wide range of features to help you manage your payments and grow your business.
Conclusion
In conclusion, setting up a Stripe account as a non-resident in the US can seem daunting, but with the right information and guidance, the process is relatively straightforward. By following the step-by-step guide outlined in this blog post, you should be able to successfully set up your US Stripe account and start accepting payments from customers in the US.
First, you will need to provide your personal information and business details to Stripe, including your legal name, address, and contact information. You will also need to provide documentation such as a passport or national ID card to verify your identity.
Next, you will need to link a bank account to your Stripe account in order to receive payments. This will require you to provide your bank account information, including the routing number and account number. It’s important to note that Stripe does not support all bank accounts from non-US countries, so be sure to check the Stripe website for a list of supported banks before proceeding.
Once your account is set up and verified, you will be able to start accepting payments from customers in the US. You will also be able to access various features and tools that Stripe offers, such as recurring payments, subscriptions, and fraud detection.
It’s important to note that as a non-resident, you may be subject to certain taxes and regulations, so be sure to consult with a tax professional or legal advisor before proceeding. Additionally, Stripe may have certain restrictions on the types of businesses or industries that they support, so be sure to check their website for more information.
Overall, setting up a US Stripe account as a non-resident can be a bit of a process, but by following the steps outlined in this guide, you should be able to successfully set up your account and start accepting payments from customers in the US. As a non-resident, remember to be aware of taxes and regulations and consult with a tax professional or legal advisor before proceeding.
