Stripe Atlas: A guide to U.S. incorporation, tax IDs, and equity

Stripe Atlas is a service designed to simplify the process of starting a business for entrepreneurs around the world ^[1]. Offered by the financial infrastructure company Stripe, Atlas packages the core legal and administrative tasks of company formation into a single online platform ^[1]. More than 100,000 founders from over 175 countries have used the service to launch their startups, according to Stripe ^[1]. The goal is to provide a fast, automated way to create a formal business structure ready for banking, fundraising, and operations ^[1].

What's included in the Stripe Atlas package?

The service bundles several key components necessary for establishing a new U.S.-based company, specifically in the state of Delaware ^[1].

Corporate Formation and Legal Documents

Stripe Atlas handles the generation and filing of all necessary incorporation documents ^[1]. The legal templates used for this process were created in collaboration with Cooley LLP, a law firm with extensive experience working with startups ^[1]. This provides founders with standardized legal paperwork for their new entity ^[1].

Tax and Equity Administration

A critical step after incorporation is obtaining a federal tax identification number, or Employer Identification Number (EIN), from the U.S. Internal Revenue Service. Atlas manages this application process for the new company ^[1].

The platform also helps founders issue their initial equity, or stock, in the company ^[1]. This includes filing the Section 83(b) election, a crucial tax filing for founders receiving stock that is subject to vesting. This election can have significant personal tax implications, and its inclusion simplifies a step that is often confusing for first-time entrepreneurs ^[1].

Banking and Fundraising Tools

Once incorporated, a company needs a bank account. Atlas is integrated with Stripe's banking-as-a-service product, Stripe Treasury, allowing for a streamlined process to open a business bank account ^[1].

For companies looking to raise capital, Atlas provides tools directly within the Stripe Dashboard. Founders can generate a Simple Agreement for Future Equity (SAFE), a common type of fundraising instrument standardized by Y Combinator, to accept early-stage investments ^[1].

How does the incorporation process work?

Stripe designed the Atlas process to be completed online without the need for phone calls or physical mail ^[1]. The typical timeline is a few business days from start to finish ^[1].

1. Submit Information: The first step is to fill out an online form with details about the proposed company, its business, and its founders. Stripe indicates this can be done in a few minutes ^[1].
2. Sign Documents: After the information is submitted, Atlas generates the necessary legal documents, which founders then sign electronically ^[1].
3. Filing and Processing: Stripe Atlas takes over from there, filing the incorporation documents with the State of Delaware and applying for the company's tax ID ^[1].
4. Company Formation: Within about two business days, the company is officially incorporated and ready to move forward with opening a bank account, accepting customer payments, and pursuing fundraising opportunities ^[1].

What are the costs and financial benefits?

While the provided source material from Stripe does not specify the upfront fee for using Atlas, it details a rebate program and other financial perks for new companies ^[1].

Fee Rebate Program

The full Atlas fee can be refunded. To qualify, the newly formed company must open a Stripe Treasury bank account and deposit at least $5,000 into it within 90 days of incorporation ^[1].

Credits and Partner Discounts

In addition to the core services, Atlas provides new companies with valuable credits and discounts. This includes $2,500 in credits to be used on Stripe's own products, such as payment processing, during the first year of operation ^[1]. The package also comes with over $50,000 in promotional offers and discounts from partner companies, including Google, Xero, and Amazon Web Services (AWS) ^[1].

Who is Stripe Atlas for?

Stripe Atlas is aimed at founders globally who want a standardized, fast, and remote-friendly way to establish a U.S. company. The service has been used by entrepreneurs in more than 175 countries ^[1].

According to Stripe, users have found the service valuable for its speed and simplicity. A co-founder of Cursor, incorporated as Anysphere, Inc., described the process as "straightforward, quick, and comprehensive" ^[1]. Similarly, the founder of Copilot Money reported that the service simplified the incorporation process and that its provided resources and templates saved time and money ^[1]. The platform is designed to handle the foundational steps of company creation, allowing founders to focus more on building their product and business ^[1].