If you’re based in India and want to use Stripe to accept online payments, you’ve likely discovered a major roadblock: Stripe is not available to Indian individuals or businesses directly.
That means you cannot open a Stripe account from India using just your personal or Indian business information.
However, there’s a well-established workaround: form a U.S. company.
With a U.S. entity and supporting documents, Indian entrepreneurs can set up a Stripe account as if they were operating a U.S. business. This is a common route taken by founders offering SaaS platforms, selling digital products, or providing services to global clients.
However, be aware that even with a U.S. company, Stripe may require additional verification steps, such as a U.S. phone number, a valid website that clearly describes your product or service, and in some cases, a U.S. business address.
These aren’t deal-breakers, but you should be prepared to provide a credible digital presence and business details during onboarding.
What Kind of U.S. Company Should You Form?
When setting up a Stripe account from India, you generally have two solid U.S. business structures to choose from: an LLC or a C Corporation.
An LLC (Limited Liability Company) is ideal for solo entrepreneurs, freelancers, and digital business owners who want something easy to manage and cost-effective. It has fewer formal requirements, no board meetings or shareholder reporting, and the tax filing is more straightforward for small businesses. If you’re running a consulting business, selling digital products, or operating a lean SaaS without external investors, an LLC is usually the better fit.
A C Corporation is more structured and formal. It's preferred if you plan to raise investment, issue stock options to employees, or get into accelerator programs like Y Combinator. C-Corps are the default expectation for U.S. investors, especially in tech startups. They're a bit more complex to manage and come with corporate-level tax obligations, but are necessary if you want to grow and scale through outside funding.
Either option works for getting a Stripe account—you just need to be clear about your long-term business goals.
How to Form a U.S. Business for Stripe
The process of forming a U.S. business is fast, online, and simple when you use the right partners.
Whether you’re forming an LLC or C-Corp, the key component you’ll need to get your Stripe account is an EIN (Employer Identification Number). Stripe uses this as proof that your business is registered and legitimate in the U.S.
Here’s what’s involved in the formation process:
- Choose a state—Delaware and Wyoming are the most popular.
- Select a business name and hire a registered agent in that state.
- File the Articles of Organization (for LLCs) or Certificate of Incorporation (for C-Corps).
- Apply for an EIN from the IRS. This is what Stripe will use to verify your business.
You can do this on your own, but most founders use formation platforms like Firstbase, Doola, or Clerky to take care of it.
If you prefer a Stripe-native route, Stripe Atlas offers a C-Corp formation service that helps you get incorporated and connect with Stripe in one go.
While the formation itself is fairly straightforward, it does come with ongoing obligations. You'll need to file annual reports with the state and submit federal tax filings with the IRS—more on that next.
Ongoing Tax Obligations to Keep in Mind
Once your U.S. company is formed, you’ll have two primary tax obligations every year—one with the state, and one with the federal government.
1. State Taxes:These are essentially recurring administrative fees to keep your company active.
- In Delaware, LLCs pay a flat $300 fee by June 1, and C-Corps file an annual report and pay a franchise tax starting at $225 by March 1.
- In Wyoming, both types of companies file a short annual report and pay a license tax (minimum $60), due in the anniversary month of incorporation.
These fees are predictable and simple. Many registered agents even send you reminders or offer to file these reports for you.
2. Federal Taxes:This is a more serious obligation. The IRS requires detailed reporting based on your entity type:
- Single-member LLCs must file Form 5472 and a pro forma 1120. These forms report foreign ownership and any transfers between you and the business.
- Multi-member LLCs file Form 1065, issue K-1s, and foreign members may also need to file Form 1040-NR.
- C-Corps must file Form 1120, and if foreign-owned (which most are), also Form 5472.
These federal filings are due by April 15 each year. Missing them can trigger penalties starting at $25,000 per missing form, especially for Form 5472. It’s critical to get them right.
You can file these yourself, hire an accountant, or work with a registered agent for the state-level filings. For federal tax filings, it’s best to work with a U.S.-based tax professional—like Bookmate.
How Bookmate Can Help
Bookmate is designed specifically for non-U.S. founders—especially from India—who are building U.S. companies. We specialize in helping international business owners stay compliant with U.S. tax laws and avoid costly mistakes.
Unlike many generic accounting firms, we:
- Focus on foreign-owned LLCs and C-Corps
- Understand the challenges Indian founders face with compliance and IRS paperwork
- Offer flat-fee pricing with no hidden charges
- Provide personalized support and clarity at every step
Here’s how our process works:
- We start with a free Zoom consultation to understand your company’s setup and needs.
- You receive a digital invoice and engagement letter—no physical mail or printing involved.
- You complete a secure online form to share your business details.
- Our tax professionals prepare the necessary IRS forms and walk you through the results.
- We file everything for you, and help respond to any IRS notices if needed.
Book a free consultation to get started. Learn more at trybookmate.co
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Each tax situation is unique. Please consult Bookmate or a qualified advisor.
