Stripe dropping foreign owned LLCs

[challenge]

Got multiple warnings from my friends that stripe is starting to require US based employees when the US LLCs are foreign owned.

I mean they allow you to sign in and start trading then they randomly block your funds and ask for something along these lines:
- us bank account, not emi
- tax id of everyone involved
- at least one employee in US, not RA
- non virtual address (RA's not valid) for your business

can you confirm this? I bet this is why they dropped LLCs from atlas too?
have there been any US-LLCs law changes/news that I'm missing or it's just them playing safe?

 

[Martin Everson]

I read in another forum the post someone made with same issue. The person posted the response from Stripe and it included:

"Stripe accounts primarily require a local physical address, business registration, local bank account, and significant operations in that country. "

Seems they have been cleaning up since at least last summer and no longer want shell companies basically.

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Sols]

If true, this is just basic card scheme regulation enforcement. All the card schemes have nearly identical rules on this.

As an acquirer (card processor), you can only process for businesses which are located in the region for which you are licensed. A US acquirer cannot take an EU business, an EU acquirer cannot take a US business, and so on. Enforcement of this rule can be lax, especially with high-risk processors, but Stripe and their partner processors do not fit that description so it's enforcement time.

Toggle signature
This is the probably the answer to your question.

 

[John Andrews]

What about Stripe Atlas? Maybe they just want people to use their $500 service instead of $50 registered agents...

 

[SaintVince]

What about entities set up with Strpie Atlas? Are they also refusing them?

 

[JohnLocke]

mange38 said:
What about Stripe Atlas? Maybe they just want people to use their $500 service instead of $50 registered agents...
Click to expand...

They may stop this services from the very moment as they put this new rule into place unless they can provide all required as a service to stay compliant with cross boarder policies from the card association.

Toggle signature

>> Unlock the Power of OffshoreCorpTalk: Become a Member of the Mentor Group Gold <<​

Latest Video Interviews, Offshore Company Resources, Payment Processing Tips & Tricks, Articles and Anonymity Hints only a click away!
Support the Freedom of Speech of our Community

Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.​

 

[Tax Cow]

I'd not be surprised if payment processors like Stripe will be forced to withhold "digital tax" somewhere in 2022 should the OECD tax reforms on digitalization of the economy (3 pillars) not reach consensus.

As it stands, the concept of digital tax is a matter of "fair share", a tax only the rich Googles should pay. Once implemented, the scope gets widened and every business with online presence will pay it. Just like the wealth taxes always tumble down to the middle class. Eventually, payment processors will be held liable for withholding of digital tax on every online purchase.

Hopefully just a speculation!

Last edited: Jan 26, 2020

 

[bnpsu]

challenge said:
Got multiple warnings from my friends that stripe is starting to require US based employees when the US LLCs are foreign owned.

I mean they allow you to sign in and start trading then they randomly block your funds and ask for something along these lines:
- us bank account, not emi
- tax id of everyone involved
- at least one employee in US, not RA
- non virtual address (RA's not valid) for your business

can you confirm this? I bet this is why they dropped LLCs from atlas too?
have there been any US-LLCs law changes/news that I'm missing or it's just them playing safe?
Click to expand...

I have heard this too - what kind of business are they running with Stripe and when did they get this?

 

[JohnLocke]

xzars said:
As it stands, the concept of digital tax is a matter of "fair share", a tax only the rich Googles should pay. Once implemented, the scope gets widened and every business with online presence will pay it. Just like the wealth taxes always tumble down to the middle class. Eventually, payment processors will be held liable for withholding of digital tax on every online purchase.
Click to expand...

Thank you for the information, and yes sure if that is already on the table it will come. The governments all around the world do whatever they can to get money to the bleeding treasury because of mismanagement.

Toggle signature

>> Unlock the Power of OffshoreCorpTalk: Become a Member of the Mentor Group Gold <<​

Latest Video Interviews, Offshore Company Resources, Payment Processing Tips & Tricks, Articles and Anonymity Hints only a click away!
Support the Freedom of Speech of our Community

Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.​