
Navigate tax season using Stripe Atlas - uptown
https://stripe.com/blog/atlas-taxes
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superasn
I really admire how Stripe atlas has the customer's best interest in mind. I
recently incorporated my company through them and without much thought decided
to do it near 20th Dec. Immediately I got an email from them that it would be
in my best interest to wait till 1st otherwise I'll be paying taxes in March.
That one email saved me a lot of work this year, so thanks for that. It's
these little things that can be really helpful sometimes.

~~~
koolba
Curious why you didn't wait 12 days (until Jan 1st) to save your self from one
year's paperwork and fees? (assuming you're using the calendar year end as
your fiscal year end).

EDIT: _Oh duh I totally misread that. Sound advice indeed!_

~~~
tudelo
Pretty sure the OP is saying he did, after getting notice.

~~~
superasn
You're right about that. Waiting for 2 weeks was well worth all the paperwork
i'll avoid this year :)

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patio11
Howdy folks. I worked a wee bit on this and am happy to answer questions if
you have them.

~~~
csomar
My issue is that it is still not clear how much you are going to pay in term
of taxes. It seems like my first company that I created here in my country:
You start discovering taxes as you move on.

Could you for example create an article that demonstrates these following
cases:

1\. Exactly 0 activity. Cost to incorporate + yearly cost.

2\. Some International sales (credit cards). Say 20k in sales

3\. US sales. Say 20k in sales.

4\. Example of deduction and how much it saves in taxes.

These example can be very helpful. For example, if I'm expecting $20k in US
sales, and have $15k expenses; I know that my taxes + accounting expenses will
be between X and Y. I know that every situation is different but it kinda
brings the feet back to the earth. It is not going to cost just to
registration and the yearly franchising fee.

~~~
patio11
I can give you reasonably firm quotes for tax _preparation_ but I cannot give
you quotes inclusive of taxes, because there is _wide_ variance in situations
and because "Estimate my taxes for me" is very firmly in the practice of
accountancy and/or law.

Getting started with Atlas is $500 flat, in all cases. The ballpark numbersfor
yearly running costs, inclusive of the Delaware franchise tax, registered
agent fee, the bank fee, and a tax return through the appropriate Atlas
partner but _not_ inclusive of corporate income tax or your personal tax
situation:

No activity: ~$1,000 $20k of sales, all US activity: ~$2,000 $20k of sales,
cross-border activity: still rounds to ~$2,000 but the tax return preparation
will cost ~$200 more

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ezekg
One of the main reasons I held back with Stripe Atlas back whenever it was in
beta (been sitting on an invite for awhile) was that I didn't want the added
tax burden while bootstrapping that an C Corp brings in, so I ended up going
for a simpler LLC. These resources on taxes are good to see. The work Stripe
has been doing with Atlas is really, really great.

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abc03
One word of advice to everyone thinking about Stripe Atlas living outside of
the USA: Please discuss plans to incorporate with an Accountant beforehand.
You are still liable to pay taxes in the country where you effectively operate
from.

~~~
bspn
Wouldn't that depend on the details of any tax treaty your home country has
with the US?

~~~
gamblor956
Generally it would not. Under almost every US tax treaty, if you incorporate
in the US but run your business from another country, you would be liable to
tax in both the US and that other country for income earned by the business.
(Concept of permanent establishment.)

It's even worse if you operate in a country that _doesn 't_ have a tax treaty
with the US.

~~~
nik736
Is there any legal way to avoid it?

~~~
gamblor956
Don't operate a US-incorporated business from a non-US location. Conversely,
if you are going to be operated from a non-US location, don't incorporate in
the US.

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walshemj
So setting up a company in the USA costs you a minimum of $400/ $500 a year
just to exist.

In the UK once you have set up a company there is no ongoing cost paid to
companies house.

~~~
Sevii
The type of corporation Stripe Atlas provides is one of the most expensive
types of incorporation in the US.

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dantiberian
I looked very seriously at using Stripe Atlas from New Zealand, but ultimately
the uncertainty of the tax implications stopped me from using it. It was not
only the short-term implications while running the company I was worried
about, but also what kinds of reporting requirements it might trigger for
years after. Things like FATCA, dealing with US foreign tax credits, and who
knows what else that is lying just below the surface.

It would be great if Stripe could offer incorporation in another company with
fewer unknown implications, or hire a lawyer to write an opinion for the
implications of using Stripe Atlas in every country in the world.

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dantiberian
I was really hoping that this announcement was going to be related to
collecting, calculating, and remitting sales tax (VAT) with Stripe. More and
more countries are starting to charge sales tax on online purchases. There are
third-party solutions that integrate with Stripe, but none of them are as
clean or nice as it would be if Stripe was to handle it for you.

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SwaroopH
Wow, looks like they made it super easy to file franchise taxes. Directly
through Atlas and no extra fees either!

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nik736
I am based in Germany and would be required to pay my taxes in Germany (?).
Going with Stripe Atlas, would I have to pay additional tax in the US as well?

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lgbr
No, Stripe forms a C Corporation which separates the company's income from
your own (as opposed to an S Corporation or LLC), which will prevent Germany's
Welteinkommenprinzip from having an effect on your German tax return.

~~~
abc03
Yes, it is separate. However, Ort der tatsächlichen Geschäftsleitung is
Germany. That means you should pay taxes in Germany (if you do is another
mattter, but if you don't and the Finanzamt finds out, you are in for a rough
ride).

~~~
nik736
I think this is true. I would have to pay my taxes in Germany and make a
"Zweigniederlassung".

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Mortiffer
So can anyone here get their hands on one of these stripe atlas invite codes ?

~~~
patio11
I'd be happy to give one to anyone from HN who wants one. Just email me; I'm
(unsurprisingly) my usual handle @stripe.com

(If you want it immediately, I'm up for next ~30 minutes or so.)

