Registration of Stripe Atlas C-Corp
Hi, I'm from India and I would like to use Stripe Atlas to register a C-Corp in the US. A few questions if someone can help me:
- Will I need to pay US taxes if I do not earn anything via my Stripe Account?
- If I do not earn anything, can I still keep my company alive and running?
- What kind of yearly fees do I need to pay just to keep the company registered and alive?
I will of-course be using the account but I'm trying to get an idea for worst-case scenario as I'm about to launch my Startup.
Thank you for replies!
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No income tax is needed if you make no money, but you might want to file a tax return (google it) if you wish to record your expenses and yearly losses so they can be deducted from future earnings.
Yes.
I think just the Franchise tax and maybe for the yearly update of the company addendum, I might be wrong about the last one though.
Remember, each state has different rules and rates. Go to the state's tax information page to learn more like this one for Delaware.
Thank you!
I incorporated a C Corp in 2019 via Stripe Atlas and just finished dealing with taxes.
Yes. At the very least, you will have to pay for the registered agent ($100), a franchise tax ($450, but could be $225), and an accountant to prepare your federal tax reports ($250+).
Of course.
In addition to the expenses I mentioned above, the bank account that comes by default for C Corps (SVB) entails a $25 monthly maintenance fee. You can choose a different bank, though (Mercury), which doesn't charge monthly fees. If you're outside of the US, it's better to have at least two bank accounts as a backup.
Your accountant will ask you to provide a balance sheet and an income (P&L) statement, so you will have to take care of the bookkeeping as well.
If you plan to incorporate towards the end of the year, wait until January. That way, you won't have to deal with taxes until 2022 (as of this writing). That will give you more time/energy to grow a business rather than dealing with soul-sucking admin stuff straight out of the gate.
My email is in the profile, if you need an invite or have questions.
Thank you so much!
Hey @jmstfv, When you talked about registered agent, franchise tax and accountant fees, is it monthly or annually?
Can I prepare the tax reports myself or via a friend who is a chartered accountant and avoid paying accountant fees?
These are annual fees.
You can prepare and file them yourself if you know what you're doing.
Franchise taxes (+ annual report) - I've done it myself. It's not hard.
Federal taxes - I wouldn't recommend preparing these tax reports yourself, as they're quite complicated.
Because you're a foreigner, you will have to file Form 5472 as well (in addition to Form 1120). IIRC, the inaccurate report or failure to file it carries a $25,000 fine. In that light, it's better to pay $250 to the accountant and not worry about it.
One way you can save money is by reducing the number of authorized shares. Stripe defaults to 10,000,000 shares, which will result in $450 of Delaware franchise tax. If you don't plan to raise investment, authorizing 5,000 (or less) shares will be more than enough. That way, your franchise tax will be $225 ($175 is the minimum franchise tax + $50 annual report).
Usual disclaimers apply. When in doubt, talk to a professional.
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