Are you an international entrepreneur or online business owner looking to create a Stripe account in the US? You’re in the right place.
In a lot of countries, it’s either impossible or extremely difficult to open a Stripe account. And, even if you manage to open one, you still need to deal with your local currency, which might not be the best solution if your business relies on international transactions.
That’s why tens of thousands of international entrepreneurs and online shop owners want to open US Stripe accounts for nonresidents. It allows them to tie their businesses to the US dollar and get many other benefits, including streamlining international transactions, increasing the credibility of their business, and much more.
In today’s article, we’re gonna tell you how to open a Stripe account as a foreigner, and we’ll share with you some of the main prerequisites you need to fulfill before you can do so. Be aware that the process can become quite complicated, and it’s essential to follow all the steps carefully.
Let’s start.
How to Open a Stripe Account as a Foreigner?
First things first, just the fact that you need a Strpie account means you’re involved in some sort of online business. And, before you can start doing business effectively, you need to open a US LLC.
You see, Stripe is a payment processor, and the only way to access the US version of it (in our opinion, the best version) is to connect your US Stripe account to a US business bank account. To do that, you’ll first need to complete the entire process of opening a US LLC, obtain a US business bank account, and only then can you open a US Stripe account as a foreigner.
Essentially, to create a Stripe account, you’ll need to fulfill a bunch of prerequisites. In the next part of the article, we’ll go through some of the main ones.
Want to open a US LLC as a foreigner and use it to apply for a US Stripe account? Book a free call today and see how we can help.
US Stripe Account for Nonresidents: Main Prerequisites
So, you want to create a US Stripe account as a foreigner? Here are the main prerequisites you need to fulfill before applying for your Stripe account.
1. Open a US LLC
First things first, to open a US Stripe account as a foreigner, you need to register a company in the US. The only question here is, which state is the best option for opening a nonresident LLC?
If you have a business that doesn’t operate in America and doesn’t generate US-sourced income, you can legally pay 0% in taxes in the States. In that case, you should open a US LLC in Wyoming. This state has one of the most business-friendly laws, has relatively low formation and annual fees, and is widely considered a great place for international entrepreneurs.
The second-best option for businesses that don’t generate US-source income is opening an LLC in the state of Delaware. The main difference between these two states is that Delaware has slightly higher fees. Everything else is pretty much the same.
2. Apply for an EIN
The second prerequisite to create a Stripe account as a foreigner is to get an EIN number. And what is that exactly?
An EIN or Employer Identification Number is a unique nine-digit number assigned by the IRS to businesses in the US. Sometimes called the Federal Tax Identification Number, it’s mainly used for distinguishing between business and tax administration.
You can apply for an EIN by filling out the SS-4 form. After you complete the form, you can send it in online, but only if you have an SSN or ITIN.
However, if you don’t have any of the US tax identification numbers, you’ll have to send in the SS-4 form via fax or regular mail. If you’ve done everything right and made no mistakes while filling out the form, you can expect to receive an EIN in 2-3 weeks.
3. Get a US Address for Your Business
To create a Stripe account, you’ll need to have an address for your US LLC. In some cases, Stripe will accept a virtual address, but it will more than likely ask you to have a real physical address. This is by far the most complicated step, especially if you don’t have any connections in the US.
Our recommendation is to get in touch with professionals who will guide you through the entire process of opening a US LLC, obtaining an address for your business, and opening a US Stripe account for nonresidents.
4. Get US Business Bank Account
Before you can open US Stripe accounts as a foreigner, you need to get a US business bank account. Stripe is a payment processor, and to receive or withdraw money from it, you need to connect it to a bank account.
In most cases, to apply for a bank account, you’ll need to have:
- An EIN
- Certificate of Formation
- An operating agreement for your LLC
- An official company website
- A physical address for your LLC
After you’ve prepared everything, you’ll have three main options for your US bank account:
- Get an account with a large US bank
- Get an account with a medium-sized bank or credit union
- Get an account with an online bank
Each option has its benefits and downsides. For example, getting an account with a large US bank (e.g., JP Morgan, Chase) is the safest option, but it will require you to travel to the US and have an in-person meeting with bank representatives. On the other hand, getting an account with an online bank (e.g., Mercury, Wise) is much easier, but your money will be less safe. Medium-sized banks or credit unions usually provide the same safety as big banks but will require you to make a large deposit (between $25,000 and $100,000).
Apply for US Stripe Account for Nonresidents
After you’ve completed everything above, it’s time for you to finally create a Stripe account. To do that, you should:
Link Stripe Account to Your US Bank Account
Before you can receive payments through your US Stripe account for nonresidents, you need to connect it to your US business account. To do that, you need to go to the Business Settings menu in the user dashboard. Once you’re in there, you’ll be prompted to add information about your US bank account, business name, etc. For full details on how to link your Stripe account with your US bank account, check out the official Stripe page.
Verify Your Stripe Account
The next step to open a US Stripe account as a foreigner is to verify your bank account. In some cases, this will happen automatically and won’t require any input from you. However, in the case that Stripe can’t verify your bank account, they’ll ask you to provide additional information, such as:
- Business name and address
- EIN
- Bank account information
- Company website URL
- Information about the business owner/s
- ITIN
The last thing we mentioned was ITIN, an individual tax identification number. You need it to file various tax forms, as required by the US Internal Revenue Service (IRS). If you’re having trouble obtaining one, please don’t hesitate to contact us, and we’ll be happy to assist you. For a service fee of $400, we’ll ensure you receive your ITIN number as quickly as possible.
Now, in the case that you’ve already provided this information, don’t get discouraged. Just provide it again. Also, don’t be surprised if Stripe asks you to take a photo of your passport or to see your social media accounts. They are doing this to ensure you’re actually a real person and that you’re running a real business. Be completely transparent and ready to jump through some hoops to open a US Stripe account as a foreigner.
Wait for Stripe to Verify Your Banking Information
Once you’ve given them the information they’ve asked for, you’ll be one step closer to having a US stripe account for nonresidents. All that’s left now is to wait. The company will review your bank and US LLC details. In most cases, the review process will last 1-2 business days. After this, Stripe will send you an email informing you that you’ve successfully created a Stripe account or that they need more information from you. If the latter happens, don’t panic. Just continue being fully transparent and sharing all the info they want with them.
Open US Stripe accounts as a Foreigner: Main Benefits
Having a US Stripe account can help open a lot of doors for online businesses. Here are just some of the benefits that it can bring to you:
1. Streamline International Transactions
When you open a US Stripe account as a foreigner, you’ll be able to accept payments from over 130 countries and in many different currencies. A Stripe account can easily be integrated with platforms like Shopify or WooCommerce, allowing you to grow your business and increase your customer base. When you create a Stripe account, you’ll be able to accept payments for Apple and Google Pay, various credit and debit cards, and more.
And, not to mention that you’ll also get access to the biggest and most trustworthy payment processors in the world. Imagine how much more revenue you’ll be able to generate when your clients have the option to pay you via Stripe (a company valued at 90+ billion dollars) than if you used some random processor that no one has ever heard of.
2. Increase the Credibility of Your Business
Let’s be honest; most people in the world see US companies as the most trustworthy to do business with. By opening a US LLC and then getting a US Stripe account, you’ll make your business appear more legitimate to international customers. When you’re sending a Stripe payment link to your customers, a US LLC is looked at more favorably than if your company is registered in some other part of the world.
3. Low Processing Fees
When you create a US Stripe account, you can expect lower processing fees than in most other countries. A standard fee is only 2,9% + 30¢ per transaction, making a US stripe account for nonresidents one of the best options for online businesses with international clientele.
