[US Corporation] (1) Incorporating, Opening a bank, and Doing business in the USA without physical presences in the USA with ‘Stripe Atlas’ - Global Startup - Continued

Incorporating, Opening a bank, and Doing business in the USA without physical presences in the USA with ‘Stripe Atlas’ - Global Startup (1) Continued

Stripe Atlas

Starting a company in the USA can be needlessly complicated—lengthy paperwork, bank visits, legal complexity, numerous fees, and non-obvious decisions about what services to use. Stripe Atlas makes this fast and easy: a tool to handle everything involved in establishing an internet business, opening the new business bank account within days without the physical presence, and keeping track of everything in one place. Stripe Atlas generates the legal documents and files the paperwork and incorporates your new company in Delaware, which is the most business-friendly state and opens Silicon Valley Bank(SVB) on your behalf.

Stripe Atlas is designed for founders of internet and technology businesses. Thousands of entrepreneurs from more than 130 countries already use Stripe Atlas. Stripe Atlas have found it to be particularly suited to:

*  U.S. startups

*  Startups outside of the U.S. building global companies

*  Startups outside of the U.S. raising money from professional investors

*  International companies expanding their operations to the U.S.

C Corporation VS LLCs

Type	C Corporation	LLC (Limited Liability Company)
Nature of business	Stock company	Pass-through entity
Ownership	Shareholder (Individual or Corporation)	Members (Individual or Corporation)
Residency requirement	No required. Permitted to resident or non-resident owner	No required. Permitted to resident or non-resident owner
Legal entity	Separate entity to limit the liability of owners and officers for the acts of the company and for debts which the company may have.	Separate entity to limit the liability of owners and officers for the acts of the company and for debts which the company may have.
Operation	Most major actions of a C corporation require some procedures, such as formal resolutions of the company or votes of the stockholders.	LLC Operating Agreements empower the owners and/or managers to simply act.
Tax Treatment	Double taxation: Company income is taxed at corporate income tax rate; shareholders also pay tax on dividends or profits distributed.	Single taxation: Each member of LLC must file income tax return (e.g., individual income tax return) on profit or loss which LLC passes through each member

※ A certain type of an investor may not be interested in (or may be legally barred from) investing in LLCs because of the income and loss pass-through nature.

※ You may converse LLC to C Corporation or vice versa.

Where to incorporate

Available in Only Delaware State (Available in either the US or Foreign address)

Fee

One time fee

Ongoing costs

$500 for all successful applications including: * C-Corporation or LLC Incorporation * Signed Certificate of Incorporation, Bylaws, and Board Consent or Operating agreement * Tool to issue stock to founders * First year of registered agent fees * IRS Tax ID Employer Identification Number (EIN) * Open a bank account in and debit card with Silicon Valley Bank * Set up Stripe account and networking in an Atlas forum with other founders, other entrepreneurs, 200 investors, accelerators, and companies around world * Free post-incorporation templates * Access up to $5,000 in promotional credits from Amazon Web Services (AWS)

* $100 per year to renew Delaware registered agent (renewed automatically) * $25 per month for your business bank account (the fee is waived if you maintain a minimum average balance of $25,000 per month)

※ The Stripe Atlas LLC is designed to make conversion to a C Corporation as simple as possible at discounted and flat-rate packages fee.

※ The required documents for incorporation may vary depending on the type of business you establish.

Procedure

(1) Invitations

Stripe Atlas is available to join by an invitation only.

Invitation	Existing Stipe Atlas founders	Direct application for a Stripe Atlas
Method	Existing Stripe Atlas founders can invite other entrepreneurs to join in Stripe Atlas immediately	Anyone can still apply directly for an invitation request, for which Stripe Atlas will respond within two weeks.

(2) Application

Once you're invited to Stripe Atlas, you'll need to provide Stripe Atlas with the following information about your product, team, and how you'd like to set up your new company.

Category	Information
Company	New company’s proposed name
	A physical business address: 1) Is not necessarily in the U.S. 2) can be a business address or personal residence.
	A contact phone number
	The number of shares of stock to be authorized
	If it is a subsidiary, the parent company’s name, type (e.g., corporation), tax ID number, and a copy of the company’s government-issued registration document
Business and products or services	Website showing the products or services, price, contact, terms of service, and more
	If website in progress, screenshots, wireframes, detailed description
	Founders, investors, and other relevant history
Team (yourself, anyone else that owns more than 25% of the company, and anyone else filling the primary company roles.)	Email address
	Phone number
	Legal name
	Date of birth
	Personal, physical address
	Percent of company ownership
	Government-issued identification document

(3) Incorporation

After you submit the application and Stripe Atlas creates your Stripe account, it’ll generate the legal documents to start your corporation as the following.

Category	Description
Legal documents	Certificate of Incorporation
	Bylaws for your corporation
	Board Approval of Organizational Resolutions
	A Bank Deposit Agreement and Online Banking Enrollment with Silicon Valley Bank, for opening a bank account
	IRS form SS-4, to request an EIN for tax-reporting purposes
Bank account	Open a USD-denominated business bank account for your new company at Silicon Valley Bank (SVB)
	Once the bank account is opened, a temporary password is sent to log in online and you can find the login user ID in your Banking Enrollment Form in the Stripe Dashboard.
	Stripe Atlas users are also eligible to receive a debit card linked to their SVB account. If you opt-in for debit cards when you complete the application, you will receive an email from SVB after you receive your EIN, with instructions on how to complete your debit card application.
Incorporation	Registering your corporation in Delaware generally takes a couple of business days. Once your company is incorporated, you’ll receive your Certificate of Incorporation via email. It notes that the original is in electronic format; no hard copies are created.
	Stripe Atlas will email you with information about issuing stock to founders after your company is incorporated. New corporations can issue stock with standard terms using its free tool within 30 days of incorporation.
Corporate tax ID	When your incorporation is complete, your new company can be registered with the IRS to create a U.S. Federal Employer Identification Number (EIN). Stripe Atlas will automatically send form SS-4 to the IRS to request an EIN for your new company. It usually takes up to 2 weeks to receive your EIN via email; 6-8 weeks to receive it via physical mail.

Reference

From San Francisco to Sri Lanka, thousands of entrepreneurs in 124 countries have used Stripe Atlas to get their businesses off the ground in the USA.

Company	Detail
METAFUSED (https://www.metafused.com)	Led by Madhuban Kumar, Metafused’s mission is to make data meaningful. Their product applies artificial intelligence to let users know what customers and prospects are going to do next
During, Inc. (https://during.com/)	Zach Holman, one of the first engineers at GitHub, is building During, a calendar that helps you plan and collaborate on everything that needs doing.
IRIS (http://getiris.co/)	Iris is your modern day emergency alert for mobile, founded by Cat Noone in NYC. Iris provides hospital detection, a digital health card and rapid alerts to your loved ones in the critical moment when you need it most.
TRESS (http://www.tressapp.co/)	Started in Ghana, Tress is a social community for black women to discover and share hairstyle inspiration, information and tips. Founders Priscilla Hazel, Esther Olatunde, and Cassandra Sarfo participated in Y Combinator’s Winter 2017 batch.
PASILOBUS (https://www.pasilobus.com/)	Pasilobus builds apps and e-commerce solutions for clients on Shopify. The company is headquartered in St Louis and has employees around the world.
ZUMROD (https://www.zumrod.com/)	Zumrod is an e-commerce platform that supplies health and beauty products to women in the Arab World. Co-founder Said Hassan also leads Gaza Sky Geeks, the first startup accelerator in the Gaza Strip.
LUDUS (https://ludus.one/)	Vincent Battaglia, the Belgian founder of LUDUS, established his business in Delaware by Stripe Atlas because his business is 100% SaaS with potential customer everywhere on the globe and desire his business to become a global company. The company provides presentation tools for designers on SaaS basis.

* How the business law in Delaware is the most business-friendly

* What you do for US Taxation

(Continued in 2nd edition) Click here

The following tax information is for your reference, and is not legally binding.

Source: Stripe, IRS, and State of Delaware